Traders Financial Calculator by the Successful Trader


Hi it’s Jeremy Downing here I’m the
founder of the Successful Trader and No 1 best-selling author of my
book The Successful Trader. I help people build wealth for their future in only 5
minutes a day. If you ask most people what preconceptions they have about trading and investing in the stock market they talk about stripy powersuits, roaring fast supercars, million-dollar yachts, and the perils of
Wall Street. Everyone’s heard the myths, legends and rumours of multi-million
dollar fortunes being built from scratch through trading. So, if you’re interested
in trading you’ve probably got 3 major questions… The 1st one.. How much
money do I need upfront? The 2nd one… How much money can I realistically make? and No 3.. When will I see results? The truth is that it all depends on you… It doesn’t matter how little or how much you start with. You can create an
incredible compound effect that will grow your wealth exponentially… I’ve created a FREE calculator that helps you see what your trading potential could be… Let’s take a look at how it works… so the screen that you’re looking at now might
look slightly complicated to start off with but the only boxes that you will
ever need to fill in, to get the answers you need from the calculator, are the
boxes that are coloured in green, and instructions for those boxes are in the
cells to the right of those green boxes… So, let’s start with an example.. Let’s
imagine first of all that an investor starts off with a lump sum and they put
that into their trading account and then they start trading with that fund and
they’re producing a steady monthly income of just 1.5% per month.. I’m using this example of 1.5% because most people would consider that
a very modest return from trading and it is in fact the average trading return
that myself and my students get using the strategies in the Successful Trader’s
Cashflow Trader Program (Now Renamed ‘Investing with Cashflow’) and the great thing is that a return
like this can be achieved in just 5 minutes a day.. and that’s what our students are doing.. now let’s assume that the fund they start with is $20,000… Now don’t worry if you haven’t got $20,000 to invest we’ll deal with building a fund up with very little starting capital shortly… that’s the
beauty of this calculator that it deals with lots of different circumstances. So for now let’s start with the top green box which is labeled ‘Initial Investment’
fund and I’m going to enter the amount of $20,000 and you’ll see that the yellow section at the bottom of the calculator has now shown
us that if we do nothing in terms of building our investment fund that it
will stay at a value of $20,000 each and every year… Now I’m now
going to add a figure into the third box down which is labeled ‘Initial Monthly
Growth Rate’ and I’m going to put in our anticipated monthly percentage return
which as we mentioned is 1.5% as you can see this is where things
start to get very interesting and extremely profitable!!! This clearly shows
now in the yellow section at the bottom the impact of reinvesting your returns
into your fund month-on-month and the massive effect that that can have on the fund size over time.. So in this example you can see that a modest return of just 1.5% when reinvested each month can turn a $20,000 fund into a $119,000 in just 10 short years… that’s an increase of nearly 6 times our original fund
from a modest investment return of just 1.5% a month and reinvesting that amount… Now… how amazing is that? You’ll see also, that the
calculator is continuing to show the growth of the fund for the next 15 years
after that – 25 years in total, some of these figures are truly amazing aren’t
they? And we’ll talk more about that later because we haven’t finished exploring the wonders of compounding … and building our fund for the future yet… You see, after we’ve built up a sizeable fund.. we can now start drawing an income from
that fund just in the same way that you will redraw income from a pension… Let’s imagine then, that after 10 years that’s the start of year 11.. that we start taking an income from our fund so in the 7th box down we need to enter what
percentage of our monthly return we’re going to draw down as income and then I
need to tell the calculator which year I want to start drawing down this income
from. So let’s enter a 70% withdrawal of monthly income.. and say we are doing it from year 11 As we’ve just discussed you can see now in the yellow area under
the column marked as ‘Annual Withdrawals’ your income, that the calculator has now
populated how much that 70% drawdown of our monthly return would give us each year in income… and you will see that because we’ve only withdrawn
70% of what we earn… that the fund keeps growing with the 30% that we’re still reinvesting each year! So, let’s just be clear about
what that 70% drawdown means… We’re earning a 1.5% return on the total
value of our fund each month and what we are withdrawing is 70% of
the amount of cash that that return of 1.5% gives us… So, for example, if that
1.5% equals a $100 each month… then 70% of that would be
$70 each month and we would leave the other $30 in the
fund… which would add to the growth of the fund… So, what have we got so far ? Well
the calculator is showing us that if we start with a fund of $20,000 and we can trade consistently at a rate of 1.5% per month, then when we
reach year 11 we could take an income of $15,421 in that year and the fund would keep growing after that and keep giving
us a pay rise every single year from then onwards.. Still with just a return of
1.5% per month… So let’s just think about that for a moment.. We started off with $20,000 and if we just applied a simple compound principal with
a return of 1.5% per month, then after 10 years we could be drawing down 75%
of the value of the initial fund that year and more than that every year
after because the fund keeps growing… that’s worth thinking about isn’t it? Okay so now we’ve seen how the investment calculator works starting
with what’s quite a large sum of money for most people… Let’s see how we can use it to look at an investment that grows over time with the
combination of regular monthly deposits into the fund and at the same time
having that 1.5% per month growth from our trading and
investing activity.. So in the first box ‘Initial Investment fund’, I’m going to put
in just $3,000 and then what I’m gonna do is say that for
someone who doesn’t start with a big investment fund, maybe what they can do
is they could make regular contributions into their investment fund just like
they would with their savings account or maybe they pay into a regular pension each
month.. so this is something that most people do. So maybe we could do this with
the money that you control for investing instead of putting it into those other
things… so in the 2nd box, I’m going to say we make a regular monthly
contribution of $300… and then I’m going to apply the same
1.5% monthly return and again I’m going to say that from the start of year 11
that’s after 10 years… that we’re going to withdraw 70% of the money that we’ve created by trading and reinvesting So, if you now look at the yellow section
below you will see if you look through the columns that we’re withdrawing
money every single month and that’s showing the annual amount in return but
we’re withdrawing money every single month just we did in the first example and
we’ve got a slightly better return than we did before… But the point here is that we only started with $3,000 so hopefully I’ve
demonstrated that no matter what amount of money you start off with,
if you can do a combination of regular savings plus a minimum amount of work to
get a steady small return from the stock market that you could vastly improve the
state of your finances over a 10 year period You see we’ve demonstrated the
thing that most people don’t see when they look at investments and their
potential returns.. You see, most people overestimate what they can do in 1
year…. but totally underestimate what they can do in 10 years! This is why I focus
on a 10 year period of time with my students and I hope that what I’ve
shared with you gives you inspiration… So…I encourage you to download this
calculator if you haven’t done so already and look at building your wealth
over a 10-year period. Make that your target now before we go I just want
to demonstrate one more thing… so some people have more than 5 minutes a day
to spend on trading and if you’ve got a little more time and you can learn maybe
say just two additional strategies or one additional strategy that will make
you another 2.5% each month on a regular basis then you’d be amazed at the
difference that that can make and I’m not talking about trading for
hours and hours a day and I just mean that you spend say a total of fifteen
minutes a day instead of the five minutes a day trading with that extra
strategy… So if you could do that if you could achieve this extra 2.5% each month… Let’s go back to our original example of starting with the $20,000 fund… and use that to show the impact of
adding another 2.5% per month from say Year 3 so you can see for yourself now if you
look at the yellow section at the bottom what a massive difference that has made.. Now is it conceivable that when you first start trading investing that you only
have a small amount of time per day? because you’ve got a day job or
you’re really busy with other things but that over time as you earn more money
from this second trading income stream that maybe you will work less for
someone else and get more time to trade and you’ll be able to increase that
extra 2.5% and use those additional trading strategies so maybe you don’t
get around to earning a large percent until say year 5? So let’s make that
change… Let’s change 3 years here to 5 years and you can see that the
amounts have changed … so I’m sure now that you’re getting the idea of how the calculator works so I’m going to leave you now to enjoy planning your financial
future and enjoy building your trading and investing goals off the back of the
information you get from the calculator and one final thing for those of you who
want the detail … you can click on the detailed tab and that’s just down here and you can work through the calculations for each single month – now you may need to zoom into that to see that but all the calculations there… showing
you exactly how everything is worked out and that’s the Successful Trader
Calculator … so there you have it you can take this calculator and enter your own
figures to suit your own personal situation and find out when you can
become financially free from trading and investing now to download the calculator
for FREE click the link in the description below this video and there’s
a special bonus I want to send you – a free copy of my best-selling book ‘The
Successful Trader’ where you learn all about how I do this in just five minutes a day so go ahead and download the calculator today…. this is Jeremy Downing
the founder of the Successful Trader, thanks so much for watching and I’ll
talk to you real soon 🙂

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