Post
Topic
Board Trading Discussion
Re: Does having a lot of investing money make trading for a living much easier?
by
Genemind
on 17/10/2020, 13:07:25 UTC
I never done trading so curious on this.  Also don't have the money to trade as it would be for small amounts so I don't think I could make much.  Is that true or false?  You need a lot of money to start if you want to make enough trading for a living right?



Now imagine you are someone with no job but have a lot of money.  Or a lot of money and a job... doesn't matter.  But you have lot of money to invest.



Let say you want to make around 50k a year for someone in the US trading  As im sure lot of US ppl know, if you trade short term, you have to pay like 35% on your short term gains.  And you pay 15% when long term but obviously people want money coming in monthly like income with a job.



Now imagine someone with a million dollars as investing money... decide to buy 100 btc with the price at 10k a coin to make it simple.  I don't want to use an altcoin as an example because those are risky and you can easily lose everything as coins do drop to zero... so basically stick with the top coins on the list.  Now let say btc went up and down for the next few days and then btc went up to say 10500, now the person sells all 100 btc for 1.05 million dollars.  Let say trading fees are 0.25% fees.  Is that the rate now for trading btc?  Now in the first transaction, to buy a million dollars worth of btc.. fee would be 2500 dollars right?  Then when you sell the btc... fee is 2625 dollars... can anyone confirm the math here? 



So basically in these transactions... the trader made 50,000 usd... but pays 5125 usd in fees right?  So net profit is 44875 usd?  So say that is the only transaction this person did all year with trading, they pay tax on short term for 15706 usd on their profits... so they make 29169 usd right?



If so, there tons of ppl doing this?  Because it seems like if you have a lot of investing money... with how btc is... and it going up and down... wouldn't trading make a lot of sense for someone with a ton of money?  I mean we seen ten percent increases and higher in a few day span.  And obviously it goes down that as well but as long as you hold and don't sell, well you don't lose.  Now imagine a huge thirty percent increase in btc to 13000.  This person would make 300000 usd minus fees and minus taxes... they would still take a net of like 190000 usd right?

It's not just about the amount of money that you have but it's how you'll handle your capital. It's about the application of your learning and experiences. It doesn't end in investing alone because it also needs critical analysis and skills, especially in trading. One wrong decision and you might lose everything.