Growth Trading vs. Income Trading - Which Is Best For You?
ฝัง
- เผยแพร่เมื่อ 11 ก.ค. 2024
- Growth Trading vs. Income Trading - Which Is Best For You? | Coffee With Markus | Episode 78
Intro: 00:00
What's Happening Today In The Markets: 00:50
Growth Trading vs. Income Trading: 3:37
Deep Dive Q&A: 16:57
C: I want to do both, trade for income, increase my already large account, thus increasing the trade for income amount: 17:16
Q: Is it not dangerous to open such a big account with a broker? I mean they are not a bank: 19:37
C: If I cut my expenses in half I can trade for income on an account half the size...: 22:35
Q: So would you put $500,000 in the wheel calculator and your 5 positions just be very very large?: 24:34
C: Love the video! It's great to know the big picture, and work towards it.: 27:04
C: With such large positions then you can start moving the markets (that is why institutional investors get in/out the market slowly, to avoid moving the market): 27:24
Q: Could you take slightly riskier trades with the Wheel as a Growth strategy?: 27:54
C: Greetings from Germany, thanks for The Wheel, works very well: 30:02
C: I enjoyed this video. I will have three phase system: Learning, Growth, Income.: 30:56
Q: Would you recommend taking out a line of credit against your property to increase your account size?: 31:42
So in today's "Coffee With Markus" I'm going to you live from Germany, as I'm still travelling with my two kids right now. In the markets, TSLA once again was the big story of the day closing up 11.20% on the day. For any reason? Not really. A no name bank upgraded it, expecting a price target of $1900...which isn't too bold of a prediction with the current price at 1835. Though they did say a big announcement will be coming very soon, so we'll see how TSLA reacts to that over the coming weeks.
The overall markets basically diddled around all day. With not much going on this week, the markets seem to be looking for some impulses to get something going in either direction.
Now today's topic was inspired by Donna who was in attendance during my last "Coffee With Markus" live session. She asked how she should trade larger retirement account, so in today's session I'm going to discuss trading for Growth vs. Income.
So let's get started!
Trading For Income:
- You have a larger account (e.g. $500,000)
- All trading profits are taken out of the account to generate income
- Example: $500,000: The Wheel
~ 30% per year = $150,000
- At the end of the month (or quarter) you transfer any amount over $500,00 into your checking account.
So what determines how much you can make?
1) Account Size
2) ROI of the Trading Strategy
- The Wheel: 30-40% per year
- PowerX Strategy: at least 60% per year
Trading For Growth:
- No withdrawals: All money stays in the account
- Start with a smaller account: $10,000 or $20,000
- Use Money Management To Grow Your Account
- Fixed Ratio Money Management Technique
- Trading Strategies that support Money Management
- Trading Strategies that generate at least 50% per year
- The PowerX Strategy
- The Wheel
Income Goal:
1) $100,000 per year and ROI = 60%
100,000 / 0.6 = $166,666
2) $100,000 per year and ROI = 30%
100,000 / 0.3 = $300,000
3) $200,000 per year and ROI = 60%
200,000 / 0.6 = $333,333
#growthtradingvsincometrading #tradingforincome #tradingforgrowth
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Jump to certain section of today's video:
What's Happening Today In The Markets: 00:50
Growth Trading vs. Income Trading: 3:37
Deep Dive Q&A: 16:57
Here are the links I mentioned during today's session:
Best Brokerage Account 2020: th-cam.com/video/4MoU-UiDAi4/w-d-xo.html
tastyworks: rockwelltrading.com/tastyworks
Top Questions & Comments From Today:
Jim V: I want to do both, trade for income, increase my already large account, thus increasing the trade for income amount: 17:16
Riccardo S: Is it not dangerous to open such a big account with a broker? I mean they are not a bank: 19:37
Caleb W: If I cut my expenses in half I can trade for income on an account half the size...: 22:35
Jim V: So would you put $500,000 in the wheel calculator and your 5 positions just be very very large?: 24:34
Hao L: Love the video! It's great to know the big picture, and work towards it.: 27:04
Benito P: Jim, with such large positions then you can start moving the markets (that is why institutional investors get in/out the market slowly, to avoid moving the market): 27:24
Caleb W: Could you take slightly riskier trades with the Wheel as a Growth strategy?: 27:54
Mirko R: Greetings from Germany, thanks for The Wheel, works very well: 30:02
Peter E: I enjoyed this video. I will have three phase system: Learning, Growth, Income.: 30:56
Lance L: Would you recommend taking out a line of credit against your property to increase your account size?: 31:42
wow! you have such lovely energy that flows as a form of knowledge to others. That's really awesome!
Awesome! Thank you for watching! :)
Thanks Markus... I'm new to trading and am doing amazing at growing my account. I thought it would take me years to learn this. I trade Forex, S&P 500, Gold, Silver and Oil. I grew up in Bernkastel/Trier and came to America when I was 10. :)
Thank you for sharing your story, Cory. :)
Markus hello from Brooklyn, New York. Love your videos, learning a lot. Thank you for your hard work!
You are welcome! Thank you for watching. :)
Looking forward to the money management technique. Awesome, Markus.
Awesome! :)
Thank you Markus!
You are welcome! I am glad that this helps! :)
This is great info! Thank you. This gives me a goal to work towards for my account. Right now I have a very small amount to work with so I will be trading for growth. Peace.
Awesome! Happy trading! :)
Great vid
Awesome! Thank you for watching! :)
Amazing teaching
Hi Idrisa !, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Hey Markus. I love all your content and what you are doing here. I was wondering why you only sell options with the wheel that are 1 week expiration date? Wouldn’t you collect much more premium if you sold out of the money options at about 3-5 weeks and then let the time decay ramp up and devalue the premiums closer to the expiration and close positions when you can get about 75 percent profit from premiums as soon as possible? Maybe that timeframe is more risky but time decay still can help you manage risk with this timeframe no?
I don’t know how to calculus the specific math or calculus optimization that might be involved in trying to deduce the most optimal timeframe to sell premiums, but what is wrong with selling premiums past a week? Is it because if the stock is trading opposite of your position it takes too long to roll the position out and avoid assignment if you want to?
Enjoy your trip
Thank you!
What is the recommendation for a large dividend portfolio for extra income with the same stocks?
Sell Covered Calls against the existing positions to make an extra 15% - 20% per year! 👍
Can I trust IQ Option? Do you think they are trustworthy and wouldn't cheat with my money
I have no experience with IQ Option. It seems they are popular in the UK.
Where do you live?
Did anyone catch that 100,00/.3 = 333,333?
Hi Rob, seems that nobody besides you caught this. And YES, you are 100% correct. Thanks for letting me know. 👍
@@rockwelltradingservices Whoa! Really? Oh well, doesn't change the message. Good insights. Thanks for the video!
😀👍
cool but a long way to go and find an honest broker
Hi! You can check out this video I made about tastywork www.rockwelltrading.com/coffee-with-markus/my-tastyworks-trading-plan/