How much can a trader earn
Can we quickly become financially free with the stock market? Can you make a fortune from scratch? We often ask ourselves these kinds of questions before we start and we often have dreams in our heads. But what is it really?
I have done research in order to have as much information as possible in an attempt to answer one of the most frequently asked questions: How much can a trader earn?
Earn the minimum wage with the scholarship
The monthly net minimum wage amounted to € 1,171.34 (according to this source ). Of course, the minimum wage does not allow financial freedom, but it would be a first objective to be won with the grant.
To reach this amount, there are 2 possibilities:
The first: you have a lot of capital and you can settle for a lower performance by taking less risks. Indeed, if you have a capital of 100,000 €, you just need a monthly performance of 1.17% to have your minimum wage, which is rather achievable.
The second possibility is that you have little capital. In this case it will be necessary to achieve a big performance, taking more risk. Indeed if you have 10,000 euros, you must achieve a monthly performance of 11.7%, which at the end of the year would make a performance of 140.4% annually … Wow!
How much can a trader earn
Well as we saw in the previous point, it depends on the capital and the performance. It makes you look great, huh? Without knowing the capital and performance of traders, I unfortunately cannot answer this question because it is very difficult to find these 2 pieces of information.
On the other hand, by searching well, I found some data which allow to have an idea… I did not find any trader who shares his trading capital but I found some interesting performance 😉😉
Let’s see this in detail:
I found Julien Flot’s performance from the blog graphseobourse.fr. On this page, he shares that his 2019 performance is 69.5% which is an excellent performance!
By taking up the initial concept which is to earn a minimum wage, with this performance, it would require a capital of € 20,000 and succeed in achieving the monthly performance of 5.71% per month on a regular basis. Let me warn you before you start: Julien’s performance is out of the ordinary, very few people can reach this level.
Now let’s tackle one of the most famous investors on the planet: Warren Buffet! In this article from the Figaro (which dates from 2010 but which remains interesting) it is estimated that over 45 years, the average performance of this legendary investor is 20.3%. Warren Buffet, this legend, would only achieve an average monthly performance of 1.66%! Reaching Warren’s performance, it would take a starting capital of 70,000 € to hope to earn a minimum wage.
I share with you one last interesting idea which is that of Boursematch, on which we can see charts of traders. This site has been showing the performance of traders for several years. If we go to “Perf. average ”to obtain the list of best performers we obtain the following list which we will analyze:
Apart from the first that stands out, the other average performances do not exceed a monthly performance of 4.51%. Then, another interesting figure: only the top 7 out of 165 traders listed manage to perform more than 30% annually.
Earning a living with the scholarship
Now that we have a glimpse of really achievable performance for the best traders, there are a few things to take into account.
Already, every month is different, there will be good months and bad months so the salary is not regular, it may even happen that you lose money. If you already have an idea of your average performance, you can easily calculate the amount you would need to be able to live on it.
In my opinion, the stock market is a great way to make your money work over the long term and build up capital for later. Many traders that we see on the net earn much better their living with the formations which they sell rather than with the capital with which they trade.
This does not detract from the quality of their training, but if you want to become financially free, you will have a better chance of doing so by starting with entrepreneurship rather than starting with the stock market … The stock market will be rather a means to make your money grow rather than let it sleep in the bank.
Thank you for reading this article!