Trading For A Living - How much money do you need? - Trading Basics

Trading For A Living - How much money do you need? | Coffee With Markus | Episode 160

How Much Do You Want To Make A Month?: 0:48
What Is The ROI of Your Trading Strategy?: 3:19
Use A Formula To Determine Your Account Size: 6:15
Real-Life Example: 11:44

People often ask me, "How much money do you need to trade options for a living?"

For everyone, the answer to this is different. What are your monthly expenses? How much do you need to cover your housing costs, groceries, recreational expenses, etc.?

What are your profit expectations? What is the ROI you expect to earn with your trading strategy?

These are all questions you must answer first before you can figure out how much money you have to have in your trading account to be able to live off of your profits.

In this video, I will show you how to figure all of this out with a simple formula, so you can start working on a plan to accomplish these goals, and figure out how much buying power you need to be able to trade options for a living.

Recommended Links & Videos

#StockMarket #TradingOptions #OptionsTrading
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[rockwelltradingservices]

I hope you found this video helpful if your goal is to trade for income. What else would you like to see cover in a video? Let me know in the comments.

Recommended Links & Videos

[mhavissl]

very insighful video Marcus. Thank you. Regarding buying power, I've seen in one of your video you explained the risk of 100% overleveraging with a margin account. Do you have a video where you explained the sweet spot of using a margin account, specially when using the wheel strategy? Thanks for your great content again

[JTran]

Thanks Markus! Great video. Can you explain the risk with “margin calls” when using a margin among account when trading the wheel? What are the scenarios where a margin call might happen?

[jun]

Borrow up to 100% in a margin account. BUT NEVER mentioned about Margin call risk when you borrow 100%. Read my comment and hope you cover this.

[broski]

Really glad to see you're a realistic YouTuber on this subject. I'm subscribing!

[MC-gjfg]

Even once we have enough money to match our income requirements now, if we're retiring early to trade for a living then we likely need to trade not only for income, but also for sufficient growth to offset inflation.

[SoundOfLotus]

Hello Markus,
greetings from Germany and many thanks for your videos. I love your authentic way. You're the first Youtuber I've met where I have the feeling that you tell everything and don't hold back any knowledge so that you can sell courses or books.

One question. You have a German name. Are you originally from Germany?

Best regards from Germany

[petkuscinta]

I am not sure if I agree with these assumptions. If you have $100k cash I would argue that you buying power is $100k not $200k even in case broker allows you to touch extra $100k. If you do not have extra cash beyond and above $100k for rescue missions than your strategy must be using margin extra for nothing else but rescue missions. Using margin money must be used wisely!

[Diggimman]

Hi Markus! How are you? I'm Argentinian and starting trading since 3 months ago. I find your PowerX very very interesting. But If I buy it all at once, there no will be money to trade. So my question is: Is there some kind of subscription that I can buy to think in the "growing" process of my trading power? Since PowerX is web based, I think it maybe would be possible if you want of course. Hope you would like to help the ones who want to grow with SRC from the ground. Thank You Very much! Your information, dedication and personality are awesome assets. I appreciate the knowledge you show on all your videos. Thank you for that!

[coffeebeanstudio]

Mate, the music is very distracting. Otherwise, great content as usual! :)

[chessguy]

Is 30% on a cash account the typical result trading the wheel in your experience? I'm getting an idea of how much I need. Last week I made an over 3% ROI, but based on your 30% annualized goal I'd assume I shouldn't expect these results all the time.

[MS-hgfe]

Hello Markus,
How do you get 2x BP with margin for options? Every brokerage that I reached out to only offers 2x buying power for stocks and only 1x (cash) for options. Tks

[loverelationshipsclips]

Who do you use as a broker i am in Canada?

[masoudmokhtari]

Hi Markus. I hope you are doing well and enjoying your vacatioan and trip in Germany. Today I joined POWERX OPTIMIZER. you have several videos on youtube regarding how to use this software. Could you plese refer me the best tutorial and training video, and put the link in reply? Thanks

[mikesullivan]

Markus, big fan. Not a big fan of the music in the background in the last few videos. Distracting. You are great just talking. Just my opinion. Keep up the good work.

[topgsolarcleaning]

Keeping it real! That's why I subscribed. Very helpful although I know a lot of people didn't want to hear what you shared 🤣🤣

[clt]

Markus I think you are very knowledgeable but why do you keep putting out videos on the exact same topic and giving the same information? This is literally the same video as the one you posted 3 days ago.