Why 1–3% a Month Is the Goal — and Why That’s More Than Enough
Before we talk strategy, let’s talk purpose.
Because when I first started trading, I was chasing every alert, every “hot play,” every chance to turn $1,000 into $10,000. $10,000 into $100,000. To be “wealthy.” And I burned out — mentally, emotionally, and sometimes financially.
As I get older, and more experienced, I now often ask myself, what does wealth really mean to me? What am I trading for? Back then, my goal was different. Now, I approach trading with clarity and purpose.
I’m not trying to beat the market.
I’m not trying to flex for the gram.
I’m just trying to generate consistent, repeatable income every month.
For me, that goal is 1–3% per month.
And I’ll tell you why that’s not just enough — it’s exactly what I’m aiming for.
💡 Why 1–3% Is the Sweet Spot
Let’s be honest — most traders on social media are chasing 10%, 20%, 100% returns in a week.
It looks exciting. But it’s not sustainable — and more often than not, it ends in blown-up accounts.
Here’s why 1–3% is where I live:
It’s realistic. I’m not taking wild swings or YOLO’ing into earnings.
It compounds. 1.5% per month is nearly 20% annually.
It’s manageable. I don’t need 10 trades open. I don’t even need 10 hours a week.
It works with my life. I still work full-time. This fits into my schedule — not the other way around.
📊 Quick Math
Let’s say I deploy $50K into a few trades:
1% monthly = $500/month
2% = $1,000/month
3% = $1,500/month
That’s real money. Money to pay bills. Money I didn’t have to rely on my day job to make.
At 1%, that means I can work less to cover that car payment. At 2%, maybe all my utility bills. 3% is possibly enough for rent/mortgage!
The best part? I’m not swinging for the fences to achieve this — I’m selling premium on stocks that I already want to own and doing it at a steady pace.
🔄 The Strategy That Supports It
If you’ve followed my posts, you know I use the Wheel Strategy:
Sell a cash-secured put on a stock I like
If assigned, sell a covered call
If called away, go back to step 1
I do this on names like (but it doesn’t need to be these stocks):
$TSLA for high premiums
$NVDA for active setups
$AAPL and $GOOGL for steady, low-stress income
The beauty of the Wheel is that it doesn’t rely on prediction — just patience and discipline.
I get paid to wait.
Then I get paid again while I hold.
Then I get to start over.
😤 What Happens When You Chase More
Every time I’ve tried to do “more,” I’ve gotten less.
I chased higher premiums and got assigned stocks I didn’t want
I opened too many trades at once, couldn’t manage them all
I forced trades during earnings weeks or low liquidity
And guess what? Most of my worst trades came from trying to make back a loss — not from following my plan.
That’s when I realized:
This isn’t about being aggressive. It’s about being consistent.
🎯 What 1–3% a Month Actually Supports
Let’s zoom out for a second.
What does this strategy actually do for me?
It pays my bills
It builds up my portfolio
It gives me confidence
It gives me time and freedom
And it does all of that without me having to stare at a screen all day or stress over every tick in the market.
Some months it’s 0.8%. Some months it’s 2.5%. But I’m not relying on luck. I’m relying on process.
🔚 Final Thoughts: Play the Long Game
If you’re aiming for 10% a week, you have to be right a lot.
If you’re aiming for 1–3% a month, you just have to be consistent.
The Wheel Strategy gives me a framework to do that. And more importantly, it aligns with my reason for trading in the first place:
To build income.
To build discipline.
To build something sustainable.
Ask yourself what are you doing this for? For me, it’s always been about buying back my time and using that to spend with my family. We don’t have kids yet, but I know that when we do, I’ll be able to spend that time with them because I’ve set myself up with a system that can provide for me and my family.
A few years ago, I will admit, my goal was to become rich overnight. Filthy rich! Something I can happily post on social media and sell to my followers on how you can achieve the same! Today, the goal hasn’t changed — but the definition of ‘rich’ has. It’s no longer about dollar signs, but about time, peace, and freedom.
It’s not about trying to get rich overnight — but as long as my expenses are paid for, my portfolio can grow over time, and I can rely on my day job less, in the end, to me, that is more.
Until next time,
– HL Financial Strategies