Utilize your capital.
Are you taking into account the losses that they may incur in between those 30-pip days?
Hello to the original poster…
Let me define how this would work in practice for a small-time trader, and making the following assumptions (however objectionable):
- that he/she only had £1,000 to invest;
- that he/she managed (somehow) to trade with a +30 P/L every single day;
- that he/she lived in the UK;
- that he/she treated this as a ‘job’ and, by UK law, owed 20% tax on earnings beyond the £10k line;
- that he/she only traded EUR/USD, and that the broker offered it at a fixed pip cost of £0.06;
- that he/she only opened positions of the value of 1,000.
Here is what I calculated:
Starting account pot: £ 1,000.
UK working/business days between 1st Jan. and 31st Dec. 2015: 253 ;
Total pips to gain in a business year: 253 (days) x 30 (pips) = 7,590 pips ;
Value in GBP of 30 pips with EUR/USD: £ 1.8 (with 1 pip costing £ 0.06), given only 1k positions used;
Total profit before tax: £ 7,590 x £1.8 = £ 13,662 ;
Tax (VAT) on total profit: 20% of £ 13,662 = £ 2,732.4 ;
Net profit: £ 13,662 - £ 2,732.4 = £10,929.6.
Initial pot + net profit = £ 11,929.6.
Based on the above calculations, he/she would have earned only 11.93% of your 100k target.
There you go, just one example…
So which one r u ?
Cant wait to see your myfxbook
I am at no major position to stake claims massively on this one…
However I saw it in the corner of my eye & caught my attention.
I believe trading certainly isn’t as easy as people believe from the offset… but from people I knows experience it is entirely possible, just may take a couple of years to get there.
I know traders that have been doing it about 6 Months & can do a few grand a day… & another, 20-40k a day after about two & a half years.
Bloody nuts I have to say & more the reason why I am not giving up lol.
Anyway I am off to browse a thread regarding trading platform preferences!
Seems a great community here so far to advance I must say as well.