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When can I call my self profitable ?


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When can I call my self profitable ?

  #11 (permalink)
RedMoney
Seattle, Washington USA
 
Posts: 8 since Apr 2022
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a couple of months at least

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  #12 (permalink)
 Keab 
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OG65 View Post
At which point does a trader qualify to receive the name of profitable?
what timeframe he needs to be profitable
1 Month
2 Months
6 Months
1 Year

is this a stupid question ? Can I call myself profitable when i am profitable for 1 month now?

Trading can go a bit overboard with philosophical musings and thoughts which tends to obscure people from seeing basic facts.
Trading is a business like any other that will give you a profit or loss each day/week/month. Just like owning a shop.

So how can you tell you are profitable? Work out all your outgoings that come from trading each month (computer equipment, software and data fees, rent or if working from home a basic electricity cost etc).
Then look at your profit/loss for that month. If you exceed your outgoings then you're a profitable trader.
Then the next question will be how profitable am I, can I maintain these profits, are they enough to sustain me, can I make more profits, what do I need to do to make more profit.

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  #13 (permalink)
 
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 glennts 
Corpus Christi, TX / Westcliffe, CO
 
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When paying your quarterly US Income Tax puts a smile on your face.

"If you don't want random outcomes, don't make random decisions."
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 AllSeeker 
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If you are having to pay tax due to making money by activity of trading you are profitable.


Month is too small of a timeframe, whole point is seeing if your strategy can handle different market conditions over long periods of time. Only then you have path of sustainable profitability.

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Last Updated on June 28, 2022


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