I've just got a quick math question, that I can't seem to figure out myself, so I'm hoping someone else could give some insight.
I always hear people saying something along the lines of "If you make 'x' amount of pips daily/weekly/monthly/annually, risking a maximum of 'y' % each trade, you'll make 'z' % daily/weekly/monthly/annually." I was wondering how this could be calculated so easily based on just a risk percentage per trade? Wouldn't there be other factors involved as well? Such as lot size, stop loss in pips, average reward to risk ratio, etc.
I'd just like it to set a reasonable goal for myself as I begin to trade. Any help would be appreciated.