Playing Defence

• XRP (Fox): The newsletter short on XRP hit entry at 2.4956 and nuked down to 2.0631 for a 4R+ trade setup

• BTC (Fox): Telegram long on BTC, hit entry at 96.724,4, and reached our main objective at 97.938,5 for a 2R+ trade setup

• JTO (Fox): Telegram short on JTO hit entry at 2.6522 and nuked down to 2.3666 for a 3R+ trade setup

• HYPE (Daniel): Newsletter long from ~$23 closed at $28 TP2 for around a +21% win

• TAO (Daniel): Newsletter long from $370 hit $493 for a +33% move

The Economics of Trading

How much money do I need to start trading? We get this question a lot. The answer is simple and complicated.

My favorite answer is: “Any amount is good to start.” And then I’ll proceed to get people into paper trading, a way to trade real markets with fake money and learn without risking your hard-earned money.

Video: How to paper trade on TradingView HERE

Trading is difficult, and most people lose because they never learn to swim before jumping in the deep end.

The answer they’re looking for is a $ amount, of course, and to that, I usually say $10k to trade with is a good start. It’s a point where you can trade, make some money, and not have it be a waste of time.

But even here I still recommend people to make money in any way they can, don’t quit the job that pays easy cash, stack your account higher and higher through any means necessary.

Every dollar made or saved today can grow to ten dollars in the future

“Okay… But how much would I need to trade full-time?”

Well, you’ve got to ask yourself the following:

1. How much do I need to make each month to cover my bills? $500? $3,000? $10,000? The higher the bills, the more money you’ll need each month.

2. What type of trading style do I excel with? Am I a god at scalping, and I can pull a consistent few % each week? Or am I a swing trader who will stay relatively flat for weeks or months before hitting a huge gain?

3. How much money am I actually comfortable trading with? Because the fact is, even if you have $100,000 in risk capital, if you get emotional about every trade, then you need to trade with less money for a while.

All these variables come together to show how much you would need to succeed.

If you’re paying $2.5k/month in bills and you’re a good scalper, you might get away with a $25k account. The problem is that you’d be under high pressure to make that money to cover your bills. The pressure only makes trading harder and the chance of success much smaller.

The ideal scenario is to set up with more cash than you’d need to cover your bills. The less pressure, the better. $2.5k/month is easy mode with a $100k account. As a result, there’s no stress, and you’ll likely see much better returns and growth.

Finally, please remember you don’t need to quit your job to learn to trade. Burning the boats is an effective motivator, but it adds extra pressure and risk that is not ideal for traders.

Keep the money flowing as much as possible until it makes sense to cut out the noise and focus on trading.

What Should I Do Now?

For those in the Western World:

For the above scenario, we can either generate income from elsewhere in addition to our trading or cut costs. We can also remove any debt, whether it’s Credit Card debt, a car payment, or anything you bought with money that wasn’t yours and are now paying for each month.

Next, start with paper trading. People love to tell you that you have to lose a bunch of money to learn how to do it right, but that’s because those people are stupid.

Video: How to paper trade on TradingView HERE

You bring up your cash flow, you cut your costs, and you’re learning how to trade. At this point, you only need time, and you will beat 99% of people.

For those who can’t build their account like this 

Not everyone can cut costs, make more income, or get to a big account just by saving. For those people or the ones who know how to trade well but just have a small account, let me introduce you to prop firms.

Prop firms are businesses that fund good traders, pay a fee, pass their trading challenge, and get a pile of money to trade with.

These trading accounts usually range anywhere from $10,000-$250,000 and usually cost between $50-$1,000 to attempt to get one.

If you succeed, your account will be funded, and you will usually keep 80-95% of the profits. However, if you fail their challenge, you will lose the fee, so keep that in mind.

Prop firms are an amazing equalizer for those with a knack for trading but playing under unfair conditions.

However, it is important to note that prop firms all have their own rules and limitations. Please ensure you read up on the specific conditions of any prop firm you work with.

Weekly Wizdom and I are not associated with any prop firms and do not have any particular recommendations.

Conclusion:

The world of trading is beautiful; it affords many freedoms, and it’s a world I love, but too many grifters will tell you it’s easy or that it’s a shortcut—but trading, just like any other skill, will take time to master.

To help you do the math, expect 20%/month to be absolute god-tier peak performance.

I hope this has given you a better insight into what to expect from trading as a profession. If that doesn’t sound like something you’re into, you can always become a gambling addict <3

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