The first million is always the hardest to make.
Trading, real estate, no matter what.
In trading, some play it safe and only want to make a little bit at a time
But you must realize the markets don’t care about that and wins are able to be leveraged with options.
So you might as well push it and try to make as much as possible because that’s what the competition tries to do.
In particular, there are three things to keep in mind while you are on your way to hitting your first million…
1. Create Consistency
Up until this point, I’m sure you’ve heard a thousand different strategies for trading options.
Should you use technical or fundamental analysis? Should you buy or sell options?
The answer is: It depends.
In Hot Money Trader, Hot Money tracks the big players that already have their system in place — and we mimic the competition’s trade.
That allows us to ride the coattails of the most successful traders out there.
But don’t let that stop you from developing your own system of trading. Hot Money Trader has a trade once a week, but the market is open five days a week.
Not every trade is going to be a winner, but once you find a system that works, you stick to it.
And most importantly, know your numbers — back up your system with data.
Base your results off of the actual net money gained over time instead of win percentage.
And if you’re thinking about tweaking your system to make it better, consider paper trading.
That way you don’t risk actual money on an idea that backfires.
Trading options can be chaotic, but a simple framework and knowing your numbers can allow anyone to master the market.
2. A Rising Tide Lifts All Boats
While knowing your numbers and developing a framework are a good start, they are only the beginning.
A big thing I took out of being on the trading floor is that the people around me were market leaders.
They made the market.
And while it’s easy to envy the successful ones, it’s even better to cooperate with them.
They would be competitive as hell, but they operated in a way to uplift each other.
In the same way, it’s good for you to do the same as these people did.
If you can surround yourself with people who understand you and want to build you up, it’s going to help you.
This is what’s going to get you ahead, because you may know the numbers but are you going to be able to work through it?
If you’re going to tweak your system, it would be good to know what another trader did with his or hers. Or if you’re going to try to develop your own system, it would be good to know what other people do on a daily basis to get their consistent gains.
Nowadays there are forums, chat rooms and social media that can connect you to like-minded traders. Reach out to some of these people about your system and see what they have to say.
Who knows, maybe you can give them a few tips of your own?
Don’t be a lone wolf. Talk to others and trade in a wolf pack.
3. Race Your Own Race
Last month, I ran the Chicago Marathon in three hours, 51 minutes and 32 seconds.
The winner, Lawrence Cherono, finished in nearly half that time in two hours, five minutes and 45 seconds.
But while I wasn’t the fastest one out there, the biggest thing was that I finished.
In the end, Lawrence and I achieved the same thing — we both finished that marathon.
And hitting that first million in trading is no different.
On the way there, there are people in front of you, behind you and right with you.
But you all have those same monetary goals.
Capital in our account is similar to energy while running.
If you want to sprint and try to be Lawrence, you can’t do that.
Money in your account is a resource. And pacing your run is like managing risk and position sizing.
You must pace your run like you would pace a marathon — and a good rule of thumb for Hot Money Trader is to put 2% of the money set aside for this service per trade.
That way you never outpace your capital.
Today you have to focus on what’s important.
Continue to think bigger, and don’t settle for smaller gains just to get by and pay your bills.
Hitting that first million is always the hardest — but if you continue to show up every day and stick to these set rules, you’ll be there in no time.