On any business there is always a target goals. What it’s mean?
Let’s figure it out. When you have $10 capital, how much is your ideal target for profit? Let’s look at now for bank interest. How much is most biggest bank interest in the world? Let say it is 10% a month (very rare for bank interest, even no bank provide it).
Then look at the real business trade to compare with. When you buy something to sell, let say a box of candy, 1 box price is $10. You can sell using your very mind in about $12 up to $13 for 1 box. That is one time trade. Make it in mind of a day trade for 1 box of candy. Means that you got $2 up to $3 a day. This mean a target $3 per day.
At the other ways of result, you have to count a target of 10% profit per day ($10 capital with $1 daily profit). That is much much more than biggest bank interest, right? (10% x 20 working days/month). But it still possible and very reasonable.
So now we can figure out the money management. In business and trading industry, money management (for me myself) is not about average managing my income and spending money, but managing my target of profit. If I want to gain more daily profit, then I have to begin with more capital.
Very simple formula:
When I have $10, I CAN GET $1 daily.
When I have $1000, I CAN GET $100 daily, and that would be ($100 x 20 working days/month) = $2.000 per month.
In my version of money management, the key is:
“I have to STOP any trade when I got 10% profit in one day“. Why? Because most of more than 10% profit can trapped you into the uncontrolled business behaviour, ruin your future plan, and chance of losing all of your money.
REMEMBER: 10% PER DAY IS ENOUGH
Try it! I believe you will get stable income!
This article I made is not for a professional business trader. It’s part of my lecturer class of “Healing and Managing with New Step“.