Business Plan to Become a Full Time Trader
Becoming a full time trader generally requires capital and the ability to use that capital to generate the desired income amount.
Step 1 is to decide the income you require.
Many people that I speak with want exorbitant capital to be generated from trading, in my opinion this is the wrong way to go about it and the exact reason behind why most traders ‘fail’. How much do you earn, or what are your monthly outgoings (expenses) is a better question. Let’s say the average job pays around $80,000. Why do people think they need millions to live a better life? Time is more valuable and if stage 1 of gaining time is to earn enough to cover a regular income, that is a massive win.
$80,000 per annum would equal $6,667 per month. Now we have an idea of a target (of course, you can change this to suit your own target and run your own calculations).
Step 2 is to define the capital requirement.
Reverse engineering your needs is a great way to determine what you want and need out of a business and how to structure the business model to suit. I will show you later in the article how this is done, but for now I will cover the workings.
To access trading capital of $300,000 we would require a return of 2.3% per month to cover the earnings outlined in step 1. To calculate this, we simply divide the earnings by the capital (6,667 / 300,000 = 2.222%, so we round up to 2.3 to be safe)
We now know the capital we can access, the income required and the return we would need to generate the income we are seeking.
Step 3 is to work out the costs involved
Accessing capital isn’t as expensive as you might have thought. As mentioned before, step 2 is requiring $300,000. With the provider we use, the cost to access the 300k challenge is $657 USD per month. Fortunately, we have a code to take 50% off the first month so you can access it for $328.5.
Let’s say it takes 3 months to pass the challenge and you need to earn about 6.7% return total to pass. This would cost $1,643 USD, taking your time and earning 2.23% each of those months.
Could you imagine how much a $300,000 business would cost to purchase? The legal expense alone would likely be more than $1,700.