Growth Trading vs. Income Trading - Which Is Best For You?

Growth Trading vs. Income Trading - Which Is Best For You? | Coffee With Markus | Episode 78

Intro: 00:00
What's Happening Today In The Markets: 00:50
Growth Trading vs. Income Trading: 3:37
Deep Dive Q&A: 16:57
C: I want to do both, trade for income, increase my already large account, thus increasing the trade for income amount: 17:16
Q: Is it not dangerous to open such a big account with a broker? I mean they are not a bank: 19:37
C: If I cut my expenses in half I can trade for income on an account half the size...: 22:35
Q: So would you put $500,000 in the wheel calculator and your 5 positions just be very very large?: 24:34
C: Love the video! It's great to know the big picture, and work towards it.: 27:04
C: With such large positions then you can start moving the markets (that is why institutional investors get in/out the market slowly, to avoid moving the market): 27:24
Q: Could you take slightly riskier trades with the Wheel as a Growth strategy?: 27:54
C: Greetings from Germany, thanks for The Wheel, works very well: 30:02
C: I enjoyed this video. I will have three phase system: Learning, Growth, Income.: 30:56
Q: Would you recommend taking out a line of credit against your property to increase your account size?: 31:42

So in today's "Coffee With Markus" I'm going to you live from Germany, as I'm still travelling with my two kids right now. In the markets, TSLA once again was the big story of the day closing up 11.20% on the day. For any reason? Not really. A no name bank upgraded it, expecting a price target of $1900...which isn't too bold of a prediction with the current price at 1835. Though they did say a big announcement will be coming very soon, so we'll see how TSLA reacts to that over the coming weeks.

The overall markets basically diddled around all day. With not much going on this week, the markets seem to be looking for some impulses to get something going in either direction.

Now today's topic was inspired by Donna who was in attendance during my last "Coffee With Markus" live session. She asked how she should trade larger retirement account, so in today's session I'm going to discuss trading for Growth vs. Income.

So let's get started!

Trading For Income:
- You have a larger account (e.g. $500,000)
- All trading profits are taken out of the account to generate income
- Example: $500,000: The Wheel
~ 30% per year = $150,000
- At the end of the month (or quarter) you transfer any amount over $500,00 into your checking account.

So what determines how much you can make?
1) Account Size
2) ROI of the Trading Strategy
- The Wheel: 30-40% per year
- PowerX Strategy: at least 60% per year

Trading For Growth:
- No withdrawals: All money stays in the account
- Start with a smaller account: $10,000 or $20,000
- Use Money Management To Grow Your Account
- Fixed Ratio Money Management Technique
- Trading Strategies that support Money Management
- Trading Strategies that generate at least 50% per year
- The PowerX Strategy
- The Wheel

Income Goal:
1) $100,000 per year and ROI = 60%
100,000 / 0.6 = $166,666
2) $100,000 per year and ROI = 30%
100,000 / 0.3 = $300,000
3) $200,000 per year and ROI = 60%
200,000 / 0.6 = $333,333

#growthtradingvsincometrading #tradingforincome #tradingforgrowth

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Видео Growth Trading vs. Income Trading - Which Is Best For You? канала Markus Heitkoetter