If you make 30 pips per day, and don't make 100k/year, your an idiot

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):

  1. that he/she only had £1,000 to invest;
  2. that he/she managed (somehow) to trade with a +30 P/L every single day;
  3. that he/she lived in the UK;
  4. that he/she treated this as a ‘job’ and, by UK law, owed 20% tax on earnings beyond the £10k line;
  5. that he/she only traded EUR/USD, and that the broker offered it at a fixed pip cost of £0.06;
  6. 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


Need I say more?

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.