Hi all,
My goal is to have consistency and stability in growing my option trading / growth and dividend investment account. By focussing on probability and high quality combined, on stocks i am comfortable to own for years. This approach is also very passive and relaxing. No stress.
With more experience you are overall able to make more money later on, this is why i focus heavily on options and high quality right now, for my future self. Better to learn this on a small account then a big account later on. Same with daytrading it's best learn and start with a smaller account.
Calculated some recent returns from just options. Made $285 from selling options in 23 days. That's $12.39 a day, $377 a month or $4522 a year. This is 2.22% a month or 26.6% a year from a small 20k account. I don't know about you but i'm happy with $377 a month from just options already. I am going to aim for a 2/4% a month on average from options alone. Also want to make 2/4% a month from trading/investing in stocks. So this is a 4/8% monthly or 48/96% yearly which sounds insane, but i think it's realistic and possible, even on a higher scale with a multi million account.
Let's say my 20k account is a 1 million account that's x50 instead of a 12.39 / $4522 a year you get $619.50 a day, $18.842 a month or $226.100 a year from just options on a 2.22% per month return. Now x10 this with a 10 million account that's $6195 a day, $188.420 a month or $2.261.000 a year, yeah now we're talking! And mind you this is consistent and passive, you don't rely on what the market is doing that much with selling options. You are the casino you are the insurance while selling options to collect premium. You don't have to pick a direction, you are reacting on what the market is doing instead.
The beauty of this is that it compounds monthly. More money = making more money = making more money = making more money. With more money you also have more possibilities to trade higher priced high quality stocks with options like AAPL, MCD, MSFT, GOOGL ect.
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