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Old 01-12-2008, 01:24 PM
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Sweet Pip Sweet Pip is online now
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Join Date: Nov 2007
Location: BC, Canada
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I quite agree that one needs goals, money management, and a time frame to reach those goals just like operating any business.

I'm just trying to wrap my mind around the leverage, lot size and pip value and, if I understand correctly, this is how I just calculated my way to over a millions in 6 years starting with $5000. Feel free to correct me if I misunderstand how it works.

Assuming I can attain 55 pips/day to start and 1 pip = $1

Year 1 - 1 mini lot
55 x 240 days / year = $13200 + $5,000 initial margin = 18200

Year 2 - 1 mini lot
another $13200 + 18200 from last year = $31,400

Year 3 - 2 mini lots (could do 3 but being conservative)
55 x 2 lots = 110 pips
110 x 240 = $26,400 + 31,400 from last year = $57,800

Year 4 - 2 mini lots again (could do 5, but still conservative)
another $26,400 + $57800 last year = $84,200

Year 5 - still 2 lots
another $26,400 + $84,200 = $110,600

Year 6 - now using 1 standard lot (100K) so now if I only do 20 pips /day I should make $4,800,000?

If this is correct... WOW
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