Some Simple Math 50% Annual Returns ~ 4% per Month

Some Simple Math 50% Annual Returns ~ 4% per Month Portfolio: $50,000 $2,000 per Month

(More) Simple Math $50,000 portfolio 25% allocation to a position (risky???) $12,500

An Example Trade

An Example Trade Capital Required: $11,565

An Example Trade Capital Required: $11,565 Return on Risk: 21%

An Example Trade Capital Required: $11,565 Return on Risk: 21% Returns: $2,435

What You Think Trading Is Like

What Trading is Really Like

Realistic Results 50% per year? Sexy. 3-5% per month? Boring.

Realistic Outcomes The Winning is the Easy Part What happens when you’re wrong?

Realistic Outcomes The Winning is the Easy Part What happens when you’re wrong?

Capital Required: $11,565 Max Risk: $11,565

10% Overnight Drop? Loss of $11,565??? 9/11 gap down: 7.1%, flash crash range: 8.7%

10% Overnight Drop? Acutal Loss -> $3,500 9/11 gap down: 7.1%, flash crash range: 8.7%