Originally Posted by
lestat1350
mga sir ug mam good day....just seeking some inputs...if one person decides to quit work and become a full time
trader...how much capital would it require to keep you going and earn on a monthly basis just to support basic needs...
salamat sa mga mo tubag...
This is very subjective since we don't know how much imong gasto every month but I hope this helps (since I'm generally a full time trader kay 70% of my daily expenses come from my trading gains then 30% lang sweldo). This is what I do..
Assuming nga P30K imong gastos every month, P30K X 12 = P360K
P360K is 10% of P3.6M
Hence you need at least P3.6M or maybe P4M to start trading full time (if P30K monthly imong gastos).
The principle is, get 10% per year from your trading gains and budget it for the entire year (divide it by 12 para per month). Why per year? Why not per month or per quarter? Because per month or per quarter is too short and prone ka sa volatility. 10% per year is very achievable is you know how to trade. In fact, you could earn that amount in just a month or two but be conservative lang. The good thing about it is like this..
assuming you earned 20% this year (on top of your P3.6M)
Your P3.6M becomes P4.32M
subtract 10% or P432T, you have P3.888M left
You have P3.888M to roll for next year so assume na pud nato nga nitubo siya ug 20%, that means your P3.888M becomes P4.66M
Take 10% (For your year's expenses) or P466T, you have P4.2M left..
If you just earn more than 10% per year, nagkadako imong monthly allocation every year. The most important thing, your money growing by at least 10%, inflation is only increasing by 3% to 4%, siguradong tubo imong kwarta.
Hope this helps.