Hello, guys! I want to share with you my vision of Forex. It has been changed in last days. Forex has a great profit potential but what is more important - you can make money every month. Now look! If you invest only $ 1000 and will make 5% every month in 5 years (60 month) you will have $ 18,679! Why Donald Trump so rich - he is compounding his capital. This what you would have with one thousand. Add some money every year to you account, and you will have more! Tricky part of this is small - 5% every month. EVERY! Is this hard? - No! Does everybody work like this? - No!
I just wanted to share my thoughts with you!
Any comments or thoughts are welcome.
Trade well.
P.S In ten years one thousand of dollars with 5% per month will turn into … hold on… hold on… into $ 348,911.99!!!
I’m glad you’re getting excited about compounding!
it really shows the power of targeting conservative rewards with a consistent approach. if you have the discipline to make a plan that covers all the bases (need not be complicated at all) and only trade according to that plan, it’s very likely you will be realizing some amount of consistent profit.
you don’t have to be perfect either, a few dud months where you B/E or lose a little bit isn’t going to stop the compounding effect.
the goal then becomes consistency rather than huge profits. which is quite handy because that’s the one thing you do have control over!
sounds like an unrealistic target to me. You expect over 200% each month? Good luck and let us know how you get on as I think you will find that is much easier said than done.
yeah 10% a day is pushing the envelope and 5% a month is quite conservative I think. I’ve managed to get around 10% in a week but it probably averages more like around 5% in a week. But then there are bad weeks too… I won’t mention those!
Not really.
OK, I happen to only keep 1000 in my trading account, but that’s just a convenient figure.
500 pounds a week is a small percentage of my overall wealth.
500 to the 1000 in your trading account if 50%. Your overall wealth means nothing unless it is part of your trading bankroll.
The best way to show these returns are unrealistic is next week, post your live results. Then continue to do this for at least a year. We’ll see if these rates of return are achievable on a consistent basis.
I don’t really drawn a line between trading account and total wealth.
The amount in your trading account is irrelevant.
I could have a million in there, but wouldn,t need anything like that amount to get 50 points a day or 100 pounds a day.
OK 2% is your maximum trade.
I need 100 pounds a day to trade.
Hang on, I’ll be back in a minute.
I’m just off to pay more money into my trading account to keep you lot happy.
Won’t change a damn thing.
You’re missing the point. Unless you are willing to trade your entire wealth, how can you include that in any risk management? Unless what you are saying is you are willing to keep putting money into your account untill all your cash (personal assets and wealth included) is gone?!
Anyway back to your original point, you said 10% a day. Regardless of what the actual monetary amount is, 10% is 10%. 10% a day is unrealistic on a consistent basis.
you originally said you expect to make 10% a day. what has the account balance got to do with that 10%? your monetary gain changes but the % is still the %. 10% return on 10 trillion vs 10% gain on 10 thousand are both 10% gains.
Setting such a target is very dangerous from a psychological perspective. You will be constantly eyeing those 5% per month and base your trading decisions upon that. Your trading days will get very emotional. Instead of setting such a target, how about setting yourself the goal to learn trading first?
I personally have never set myself this numerical target but merely traded to enjoy a strong trend. It is very satisfying to me. Back in 2003, I deposited some $10,000 and light-heartedly told myself that I won’t bother even if I lost it all. Actually I did lose quite a bit: my cash went down to $7,601 initially. Somehow I learned my lesson and turned this into over $12.5 million today. I do use leverage, but always with stops. Looking back, it equals 8% monthly. But I have never seen it from the standpoint that I must make 8% each and every month. In fact, I couldn’t care less. Just trade to trade well. Hope it helps.
On average, of course some years were stronger than others. The point is that one should not focus on performance but on minimizing risk. The money will come by automatically. Admittedly, the magic of compounding is an interest thought to indulge in.
