Todays Lab LivestreamFeb 15, 2021
Today we went deep on what it takes to successfully make 2R per month. It's really not that hard to do, but most traders can't consistently make just 2R per month.
Making 2R per month is not the end game, but it is the beginning. Because once you unlock the keys to consistently earning 2R per month you can make 3R, 4R even 5R a month.
That might not sound like a lot because you always hear stories about people making millions of dollars a day trading. But the real game is being consistent and showing up everyday.
Here's some math on what 2R per month can actually provide.
On a $10,000 account, 2R per month at 2% risk makes you $6k in profits in twelve months. I believe this is why most traders don't stick to a solid and simple system, $6k of profit doesn't sound like a lot, 60% profits makes it sound a little better, but most traders will abandon this 2R plan a month or two in.
Let's look at what 2R a month compounded over 10 years earns.
In 10 years 2R at 2% Risk turns the account into $1,150,890. This is a little more reasonable, but very few traders would last 10 years, even if they knew that in 20 years 2R a month would be $127,360,504.
But back to the point, if you can do 2R a month, you can then start to unlock ways to make 3, 4, even 10R a month, consistently.
4R a month for 10 years at 2% risk is a whopping $110,732,323, and you hit the first million dollar mark in 5 years.
Again, the part that makes this so challenging to traders is that in the first year of trading you only profit $17k taking a 10k account to $27k. Most traders think that's a poor return, 170% isn't worth the effort.
If you've been trading and still aren't able to consistently earn 2R per month, you are playing a zero sum short term game.
Building a repeatable system that continually pumps out 2R per month is the easiest thing to do in the markets. But because it takes so long for the results to play out in a meaningful way traders continue to skip over it chasing the newest shiniest indicator.
As part of the Trading Lab you get access to all my strategies and can work with other traders building out your own strategies. We are going hard hard hard on supporting each other in staying focused on getting to 2R a month, then 4R a month and leveling up.
I am working hard on building out a full course for this whole concept, which will be free to all Trading Lab members, in addition to everything else we cover in there.
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