Well…I know how I am going to get rich in the Forex Market…
Step 1, load some money to your live account
Step 2, Sit at your computer, and pull up the daily chart for every currency
Step 3, Flip a coin, heads = buy, Tails = sell (1% account balance per chart)
Step 4, Close the position the next day (no matter what price is at) and go back to step 2.
**If account is closed, go to step 1.
OR…BUY A POWERBALL TICKET
there it is…the holy grail to make millions…well someone will make money…just maybe not you.
Here is a spread sheet that I have developed that works off the principle of trading with a pip value of 1/1000 of equity value. If you look at it, you can see eventually, it will add up to gross number with in a year. My theory on though is that once yopu hit an acceptable income rate, you set to a staic value. Example, if your happy with $4000 per day, you set your trade sizes to value 200 per pip. and a goal of 20 pips per day. That does not mean that as soon as you hit 20 you quit. Maybe set a stop after to ensure you do not lose what you have gained, but still leave yourself to gain more if possible to cover future short comings. I had originally designed this for a starting balance of $200 and 40 pips per day and it was feasable to break 4 million in a year. That does assume no losses of course. And from my experience, albiet short, It does not seem to be too difficult to earn 20 pips. My biggest problem has been controling myself to trade only when I should and not get over anxious and open bad trades. I am learning to not trade during big news events because they have become too volitile and have been going the wrong way it seems. Anyway, the sheet is here for your viewing and experimenting. I will try to log my personal experiences from using this as I am trying to get a steady system and control to make my trades work.
BTW, to borrow a line from Pirates of the Carribean, This sheet is not law more of a guide. If you look to the right side there is space to track your actuall PNL daily and will adjust your downline from there.
one maverick to another maverick why trade with pip value = 1/1000 of equity value? why not just say 1% risk of account for total expected s/l much simplier when calculating all that lol
AS far as the 1/1000, I am mainly trading GBPUSD and EURUSD, between them, currently, there is a 40 cent differnce. getting $1.00 per pip means ~$148 on the Euro and ~$198 on the Pnd. I find it simpler to consider what my PNL will be based on pip value.
Also, I am not sure if I am understanding this correctly, But I see risk as beigng how much you win or lose in ratio to you pip count/ value. If I understand everyones definition of risk it means that at 1% of 10,000 you open a trade with a margin value of $100. But the way I see it, that $100 dollars is not at risk, its the other 9900 that you can actually lose before you trade gets shut off. example, if I have 500 in my account and open a trade for 300 in margin, I am actually risking the 200 usable margin. Once that is gone, my trade gets automatically clkosed, and the 300 goes back to my account balance. So the risk is not in the 300 dollars it is in 200.
The red number were just another guideline, I kinda left them to fend for themselves, I was going to use them for a base number to track my progress over all, but never quite finished setting those up. The were originally static numbers.
Argue for your limitations and they are yours to keep. - Illusions by Richard Bach
definition of risk is how much % of account you can loose when something hits your stop loss. like say a 1% risk on a 1,000. You would be risking $10 on a trade for it to be stopped out
So, I guess I had the right idea while misunderstanding the explanation. I am just risking a higher percentage, with a lower dollar value for now since I am still at a low balance.
Some of you should read “The Magic of Thinking Big”. Humans have the amazing ability to reach goals they set when they have a good plan to get there.
10k to 1 mil is a great goal, I say make sure your ducks are in a row and then go for it. If you constantly assess your performance and readjust your approach then you will get there. And if it takes longer to reach, who cares?
Sitting on the fence talking about if it’s feasible or not guarantee’s failure.
“To dream anything that you want to dream. That is the beauty of the human mind. To do anything that you want to do. That is the strength of the human will. To trust yourself to test your limits. That is the courage to succeed.” --Bernard Edmonds
