You're math is correct, but the logic is a bit unrealistic. And not in a bad way, I just think if you spent an entire year making 55 pips a day and only traded 1 mini lot you would be certifiably insane. Lets assume you open up a 500.00 account with EFX and use their standard 100:1 leverage. That means that on most markets you can buy 3-5 lots with your 500.00. I'm NOT saying that is wise - it isn't, but you can use that much. With your 5000.00 account that means you COULD purchase 3-5 STANDARD lots. Thats A LOT.
If you KNOW what you're doing, there is no reason to realistically trade 1 mini lot an entire year. You're just wasting your time and not getting compensated for it. I mean, I do consider myself to generally know what i'm doing and i'm trading two mini lots on an account that is currently just above 1 grand. I doubled it from 500.00 last month trading 1 lot. I made a 100% return, another 500.00 so i've added another contract. My risk is exactly proportionate to my account size as it was last month so whats the harm? So if i do another 100% this month that means that next months i'll add on another 2 mini lots for a total of 4 mini lots (2k / 500.00 per lot = 4 lots)... and so on and so forth. I should be well over 2-3 std lots by the end of the year conservatively.
What i'm trying to say is yea, you're math, logic, that is all correct, but if you can do 55 pips a day - well you don't need to be playing your sizing that conservative. I mean look at year 4, you're now generating 110.00 a day on a 57,000 account! Thats a .002% return daily! I mean look at your first year you were making 55.00 a day on a 5,000 account which is a 1% return - not huge, but proportionately a 5X's bigger return on your capital than year 4.
I'm all for playing it conservatively, but your scenario is TOO safe, and the risk isn't proportionate throughout. Realistically, the results should be MUCH higher.
But talk is cheap folks! Its one thing for me to say this, its another thing to do it. I intend to do it. And you all have a front row seat to my success or failure in this very thread. So sit down, kick back, and lets make some money!
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