How to Make 1 Million USD in Trading?

As an ordinary trader, how much money can you earn at most? Do you think it is realistic to set a target as much as $ 1 million? This is an important question that every trader will face, and from your answer, you may be able to find out whether you can achieve it or whether you are doomed to losses and failures.

 

We always encourage traders to set a realistic goal as early as possible. If the trader can truly internalize his goal, the result will be very positive, and profitability will no longer be a difficult task.

 

 Can you earn 1m USD?

 

Of course, in theory, the answer is for sure. However, to be specific, to find the answer to this question, we must prob deeper into ourselves:

• How long will it take me to reach this goal?
• How much risk am I bearing for this goal?
• Am I a good trader?

Let's analyze these issues one by one, and we hope that you can join us in thinking about your own trading.

• How long will it take me to earn 1m USD?

 

The time you spend matters. Earning 1 million in 1 year and in 5,10 or even 20 years are totally different stories. Also, your starting point is important.

 

If your starting point is $ 1,000, and you want to earn 1 million in a few years, this is too unrealistic. It is no exaggeration to say that this type of trader will definitely use the leverage ratio excessively and will fall into the psychology of gambling. Then the trader will often trade randomly, with hopes to hit the goal once while nelegecting risk management.

 

However, if your starting point is $ 50,000, and you want to make 1 million in about 18 years, it is equivalent to maintaining an annual profit of about 20%, which seems more realistic. By calculation, after 11 years, you can theoretically make a profit of $ 60,000 a year, and after 14 years, your annual income will reach $ 130,000. That means you are 30 years old, and by the time you are 44 years old, your annual profit will be $ 130,000. This can actually be done!

 

 

20% annual profit is indeed much more realistic, which is equivalent to a monthly profit margin slightly higher than 1.5%. Think about it, is it not that difficult to reach the 1.5% profit target every month, isn’t it?

 

Unfortunately, many people don’t like this idea. Their goals are set too high, and this is exactly one of the main reasons that stops them from success. Short-term profit psychology, coupled with unrealistic illusions, will be sure to lead your trading into an infinite loop:

• Excessive risks
• Random trading
• Urgent mind to profit and never satisfied with what you get
• Lack of strict risk control

 

How much risk will you take?

 

Returns always come hand in hand with risks. If you want better returns, you also have to take higher risks. In trading, it manifests as each of your positions becomes heavier.

 

If your annual profit reaches 40%, then if starting from $50,000, you can earn $1 million in just 9 years. Of course, the risk is that your chances of margin call will also greatly increase.

 

If your position is too heavy, then several consecutive failures can have a great impact on your funds, and many traders will also become emotionally depressed and their trading performance will be more unstable.

 

Again, the higher return you want, the higher risks you have to take.

 

Are you a good trader?

 

The last question is: is it possible to achieve "$1 million" at your current trading status?

 

If you continue to lose money and you cannot even break even, then is the goal of $1 million too difficult? Always thinking about these things will only distract you, but it is difficult to change the status quo.

 

First, try to improve your trading level. Although it sounds cliché, you must establish a set of trading principles and find a way to use it smoothly and bring profit. This is what you need to do now. You have to make sure that a big goal like $1 million will not affect your thinking and mentality about every transaction.

 

Don't think about running until you learn to walk. Most traders' expectations are too high and they can't bear it at all. Perhaps adjusting our mentality to the current situation and not pursuing excessive goals will bring us closer to profitability.

 

What should you do if you don’t have enough starting money?

 

I think, most traders who read this article may not start trading from $50,000. This is perfectly fine. If you don't have a high starting point, you may follow these steps:

• Improve yourself. Find a trading method that suits you well, and keep practicing until you grasp it;
• When you are comfortable with the transaction, open a live account and deposit the transaction;
• Don't always look at changes in the account's funds, focus on how to reduce risks and avoid large losses;
• Establish your own transaction record history so that other traders or potential investors can notice your profitability
• Find a legit platform to introduce external funds for trading
• Make profit step by step and be patient.

 

In the future, you will thank the present self for your work

 

Trading doesn't quickly become your main source of income. Think of it as your part-time income or let trading income help you transition as you pursue what you love to do.

 

It takes 15 or even 20 years to gradually accumulate wealth from transactions. If you are 30 years old, then by the age of 50, you will be grateful for these efforts.