Live from Trading – That’s how much money you need!

This question keeps coming up: How much capital is required to be able to live from trading? The answers you can find vary widely and are often wrong. We now would like to bring light into the darkness and clarify the most important questions in concrete terms. Of course, we'll cover all the relevant pros and cons of the full-time trader profession.

Жизнь на доходы от трейдинга

This question keeps coming up: How much capital is required to be able to live from trading? The answers you can find vary widely and are often wrong. We now would like to bring light into the darkness and clarify the most important questions in concrete terms. Of course, we’ll cover all the relevant pros and cons of the full-time trader profession.

Live from trading

In order to live from trading, you need a very specific capital, which allows you to cover all costs and serves as a reserve. Before going into detail, let’s throw the following number into the room:


The 100 stands as a multiplier for the required capital based on the targeted monthly net income. If you want to know which capital you need, you only have to multiply the target monthly net income by 100 and get the capital needed to achieve this.

How does the multiplier of 100 come about?

The multiplier of 100 takes into account some very realistic assumptions and inevitable expenditures, and ultimately simplifies the identification of the required capital.

Considering in the 100 find the following things:

  • Health insurance
  • Retirement
  • Vacation
  • Tax
  • Illness
  • Other reserves
  • Long-term return

Of course, you can vary these assumptions individually here and there accordingly to then come up with different multipliers. Therefore, we have set up different scenarios and came to the conclusion that a very pessimistic expectation requires the multiplier 250 and a very optimistic expectation would be a factor 50:

The multiplier determined by us intends to be a rough guide, because there can certainly be some adjustments  in old-age provision, tax treatment or contributions to health insurance. Nevertheless, we are sure that this list is a very realistic assumption.

I want to live off trading, but I do not have the money

This problem is shared by many advanced traders and almost no full-time worker could get out of his profession and start as a full-time trader. Almost all traders experience a period of transition. It is not easy to suddenly be responsible for everything and to have enough start-up capital.

For this reason, many advanced traders trade alongside their full-time job, to  build up an ever-growing trading account. But at some stage, the turning point has come, in which you trust it mentally and financially and dare the leap into the lukewarm water. The advantage of working full time and trade part time  is that you can always run monthly savings on the trading account from your fixed job. This effect should not be underestimated!

Let’s say you currently have $20,000 available, save $150 every month and get an annual return of 15%, then you’ve raised $73,120 in 7 years.

With this capital you are already a lot closer to your goal.

Full-time trader, extra income or old-age provision?

Becoming a full-time trader does not always have to be the big end goal. For many traders it is sufficient if they generate a decent additional income with  trading. In the following overview, all the usual expenses that a full-time trader has to bear will be unfolded:

Now the picture looks quite different with the benefit of having  the multipliers. So if you realise you cannot raise the necessary capital to be a full-time trader, don’t worry,  there is one thing you can certainly accomplish, that is to improve your standard of living with a decent extra income. Just look at the multiplier and determine the necessary capital taking into account your desired additional income.

Under no circumstances should you neglect  the third variant: retirement.

If you do not want to be a full-time trader or are looking for an extra income, trading can be very affordable, because those who take care of their own finances at an early stage will find themselves in old-age wealth. More information about this topic can be found in this article.

Trading is not child’s play

It is important for us to give you the whole truth about returns, capital and expenses. There are numerous providers in the market who speak of 100% annually or even monthly. That’s not realistic in the long run! However, if you manage to achieve an annual return of 20-40% over the long term, then this is a very realistic project and thus it is also feasible for you to achieve your financial freedom.

To realize this project requires a lot of discipline, patience and passion. But it can really be worth it!

Benefits of a full-time trader

The advantages of a full-time trader are:

  • Independence from bosses and their decisions
  • Freedom to work virtually anywhere
  • Often short working hours

Full-time traders stare at charts all day long? You might be wrong!

Many people have a distorted idea of ​​the working hours of a full-time trader, thinking that they have to spend hours in front of the computer to analyze charts and fundamentals, then jumping in and out of a trade for a few moments. In reality, the trading style practised by a variety of traders looks completely different. To tell you the truth,  currently very few full-time traders scalp because the edge has vanished. The only exception are traders who create and run automated systems. But even then, they will rarely sit in front of the computer for hours.

Disadvantages of a full-time trader

The disadvantages as a full-time trader are:

  • Dependence on legal decisions
  • Checking the market is often necessary even on vacation days
  • Dependence on the internet
  • No income when you are ill or on vacation
  • Negative image in the society

Can anyone become a full-time trader?

We basically believe that anyone can manage to become a full-time trader. The following prerequisites are necessary to make it happen:

  • Willingness to learn
  • Patience
  • Discipline
  • Capital or a job that allows you to save on a monthly basis
  • Realistic expectations
  • Good mindset
  • Be part of a trading and investing community

Can someone who is 21 years old and has $200  make it? YES

Can someone make it who is 56 and has $5,000? NO

Nevertheless, in the mid-50’s trading can significantly improve your standard of living or provide a very decent pension.

The younger you are, the less important the necessary capital is, since you still have enough time to get the money!

I want to learn more about trading and investment

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