I'm sure you have heard so many people (including me) discuss how stock trading is passive income, but there really is not any income if you aren't taking some of the money out of your account. I see many traders who win use the profits to trade more frequently and/or adding bigger risk as they make money trading. This normally doesn't end well, lets discuss the GKT method!
Taking some profits out of your brokerage account and spending it on tangible things or meaningful experiences is a powerful feeling. This process helps shift your mindset about trading because behind all the scrolling numbers on our brokerage screen, outside the candlesticks on the charts, and the clicking of buttons on our devices there is actual real money being exchanged.
I'd like to challenge you to take some of the profits and spend it on tangible assets, or an experience that has positive impact for you and/or your family. And before we get too far into this: I know you are probably saying to yourself "But Justin, my trading account is small. I can't afford to take money out." I get it, we've all started small. I'm not suggesting you take a large sum of money out (not yet). I am suggesting that you make an actual withdrawal from your brokerage to your checking or savings and you buy something with it. Could you afford to buy a small gold coin (or any other asset)? How about taking your spouse/friend/child out for ice cream, coffee, or maybe dinner? A course or coaching session with someone you admire and who could help you learn from? When you do this tell others about it, brag a little bit. (Tell me when you do this. DM me in discord, email me justin@goodkidstrading.com).
If you aren't actually taking out a small amount of your profits and spending the money on something other than more stocks I hope you will consider it. I know this has made a meaningful impact on my life and today I'm going to share my first big vacation I paid for using swing trades:
I remember very clearly when ABNB's stock IPO'd because this was the first time I took money out of my brokerage and paid for an entire vacation, I went through the process of withdrawing the cash and transferring it to my checking account, and I paid for a 1 week vacation in St Thomas in an ABNB. The two trades paid for the flights, the rental car, food and fun. I had previously paid bills using my stock trading profits, but this was my first time using profits to pay for a vacation. It was fun to say ABNB paid for my Airbnb. It was also powerful from a psychological standpoint.
This week in St. Thomas started a new habit for me, as I type this I'm sitting on a Royal Caribbean Cruise that I paid for selling puts on RCL. I acknowledge these trips might not be obtainable for people just growing their accounts, but use this as motivation because you really can get here. I'm not that special, and sure this won't be an overnight success story for you, but it's totally possible and it's not that difficult with the right strategies, plan, and expectations. I am methodical and was a bit crazy about saving and investing for a while. It really is true that the more money you have the easier it is to make money.
Taking money out of my brokerage account and spending it on bills is a must for a full time trader, but taking money out of the brokerage and spending it on tangible assets, meaningful experiences, leisure, or self improvement is a totally different experience and something everyone, no matter what your account size should do on a regular basis. It doesn't matter if you go and buy a $5 ice cream, $20 book on something you want to learn about, maybe you sign up for a coaching or mentorship, or you pay $49 for an upgraded seat on your flight using a trade you made on an airline stock.
Taking money out of your account and spending it on tangible things trains the mind that this is real money and this can be passive income if you create a trading style and plan that you understand, practice and believe in. I'm not suggesting you take all your profits out, keep growing your account but what is all this for if you don't enjoy some of your winnings.
If you're interested in joining a community of traders and learning more about these strategies, consider joining Good Kids Trading (GKT) by clicking here.
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