Generate 10K Income On 50k Capital


Manage episode 152573512 series 1063725
על ידי Joshua Belanger התגלה על ידי Player FM והקהילה שלנו - זכויות היוצרים שמורות למפרסם, לא ל-Player FM, והשמע מוזרם ישירות מהשרתים שלכם. הירשמו כדי לעקוב אחר עדכונים ב-Player FM, או הדביקו את כתובת העדכונים באפליקציות פודקאסט אחרות.
While drinking my morning coffee today, I was reading through a few emails from readers, and I thought this was interesting to share. Read this email and my thoughts will follow. === Josh, thanks for your e-mails - I enjoy reading them! I'm always amazed at how much people rely on the "experts" such as doctors, lawyers, etc. You're right in today's world; the little guy has a better chance than ever before. I still have a full-time job / will be winding down over the next few years - and want to learn gradually the skills needed for options trading. I have approx $50k in "risk capital." I'm hoping to generate 10k in income off of this mainly selling premium through spreads / naked puts / some covered calls. Do you think that this is reasonable? Thank you again === Thanks for the kind words and glad you enjoy what I have to provide. I don't want you or anyone else to misunderstand my belief on professionals. We all need to be a professional at something to create value in the economy and to others. If I need legal help or need major surgery, 100% I'm going to a professional and the best. Those professions have a lot of expertise and knowledge. There's so much more you need to know than investing your money and making money from it. When it comes to managing your money and creating realistic returns, I don't believe that gap of knowledge and tools needed is that far between with doing it yourself and a professional. You also have to understand the restrictions financial professionals have, it's not in their best interest to try to do any better than a benchmark because or the risk and work involved. It's not all their fault, it a combination of legalisation and people's lack of knowledge. That is why I stopped managing money; I was stressing myself out more than what it was worth. I'm better off doing it myself and teaching you and others how to do it. It has allowed me to have more freedom and enjoyment with other people achieving the success they didn't think they could do themselves. Everyone needs a full-time gig that brings in that moolah. It's what you're best at right now while you start to learn, train and gain experience trading options with being able to make mistakes and how to deal with losing and winning trades. I know it's not fun, but it's the discipline needed. I want you to steal this: Discipline equals freedom in life. Discipline equals moolah in investing. Discipline creates consistency. Money and freedom aren't given; it's earned through discipline. Do I think it's possible to make 10k income a year on a 50K account? Sure, depends on your risk tolerance. However, that is a 20% return. To me, it seems a little unrealistic and from experience not much of a cushion for mistakes or just market randomness. You want to approach this as a business and a successful business keeps growing. For this type of business, capital is essential. Selling options do provide the opportunity to have higher chances of success, but it's just not that easy. There are times where it makes more sense to buy spreads or other strategic approaches to managing risk. It's an example of what you want, but no one cares what you want nor does it mean it happen. You're forcing what you want without the consent of the other party. If you did that to another person, you'd be behind bars. It's about having respect and understanding. I know there's concern with putting time and money into something that has uncertainty and no guarantee. That's everything in life, though, they're professionals who train every 4 years just for one chance to win a gold medal. Read more here:

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