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If I trade with 10k, how much can I earn per month?

Last Updated: October 1, 2020

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If I trade with 10k, how much can I earn per month?

I get this question a lot.

In my own trading, I target short standardized equity options positions that would return at least 2% per month.

(Note that I’m speaking on stock options, NOT binary options. If we were to discuss binary options, the question would rather be “How much can I lose monthly by trading 10k?”)

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Despite having a 2% target per position per month, I don’t hope to make that each month. In fact, my best advice is to not focus on that at all. Instead, if you are a beginner it is better to focus on losing a little money in the first few months and learn a few staple options strategies. Also important to focus on not risking more than 20–30% of your available capital by investing no more than 1–2% in each position.

Over the coming months, if you start to make money then you will understand how much you could make if you went all in.

Then please take a cold shower, sit down, breathe, and make a blood oath that you will never put more than 50% of your account at risk and if you see more than 5% drawdown in a month then you liquidate and stop trading.

This may not be a direct answer, but I hope it provides you even more value in your journey to becoming a successful trader.

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