I think he said he lived in Condo in Las Vegas. You can’t not make a living off 1k a month in Vegas. The only way you can make a living off 10k Forex account is if your living in a 3rd world country like the Congo where the cost of living is 100 times less than in the developed world.
Don’t confuse “how much is in an account” with “total trading capital”. I rarely have much more than 10% of my “total trading capital” in my FX account. The other 90% sits safely in a fed insured bank account. One of the benefits of 50:1 margin.
Regardless you can’t’ make a living trading a 10k account, much rely on your Forex profits from a 10k account to pay your mortgage on a plush condo in Las Vegas.
He said it’s possible to make a living trading FOREX with 10k to 12k. That’s not possible. How does having more money in the bank make a difference? He didn’t say he was living off 10 Million dollar in interest he said it was possible to make a living off a 10-12k account because he has done it.
I would say that being able to live off trading basically depends on your expectations of life and how much you need to be happy…
And don’t forget that in forex you never know how much you will make the next month, you don’t have the security of the paycheck of a ‘normal’ job…on the other hand what job can be considered secure these days?
I imagine there are a lot people making their living with forex, but most of them are just making their money and living their lifes…not feeling the need to post their trading success in forums…
I don’t trade a single account I trade several.
My account makes my living, and enough to compound. I also trade several others that make decent money as well. I make money off trading those accounts in addition to my own.
And yes, it is entirely possible to make a living off a 10k account without overextending it, or overleveraging, and risking much less than you would imagine. And even having enough to compound. I didn’t say I lived like Donald Trump, I said simply I was comfortable. I don’t have monthly bills. No credit debt, no car payment. Just monthly rent, insurance, and utitlities (phone, cable, and electric). I don’t see the point in buying a home right now. If I can’t pay for it in cash, I don’t buy it. You would be surprised at how cheap life can be if you don’t owe interest on every purchase.
[QUOTE=“Master Tang;532788”]
I don’t see the point in buying a home right now. If I can’t pay for it in cash, I don’t buy it. You would be surprised at how cheap life can be if you don’t owe interest on every purchase.[/QUOTE]
Dude…!!! Why would you not see the point in buying a home…?? Interest rates will never be as low as they have been again for a VERY long time… Between subdued house prices and low interest rates… Home affordability hit the sweet spot over the last two years! Rent is more expensive then a monthly mortgage payment for most of the country… shakes head
Ideally as the account grows… Investing in real estate and rental properties would be the logical transition … Passive income… Can’t beat it.
#1 I don’t want to borrow. When I buy, it will be cash. That will take a couple more years for most purchases.
#2 I can’t decide where. My wife and I are spending more and more time in the Pacific Northwest, and love it. Reno is still sort of home, but we both grew up in Hawaii, and miss it. Confusion rules at the moment.
#3 We can’t decide if we want to buy something already there, or start from scratch on acreage. That rules parts of Hawaii out, but leaves the Northwest wide open. I’ve found some stellar deals on anywhere from 3 acres up that I have enough cash for now, but would have to wait a bit to build what I want to. My wife wants enough land to be self sufficient. I feel that way somewhat, but who knows. I like city life too.
So, some decisions to make, that’s all.
[QUOTE=“Master Tang;532802”]
#1 I don’t want to borrow. When I buy, it will be cash. That will take a couple more years for most purchases.
#2 I can’t decide where. My wife and I are spending more and more time in the Pacific Northwest, and love it. Reno is still sort of home, but we both grew up in Hawaii, and miss it. Confusion rules at the moment.
#3 We can’t decide if we want to buy something already there, or start from scratch on acreage. That rules parts of Hawaii out, but leaves the Northwest wide open. I’ve found some stellar deals on anywhere from 3 acres up that I have enough cash for now, but would have to wait a bit to build what I want to. My wife wants enough land to be self sufficient. I feel that way somewhat, but who knows. I like city life too.
So, some decisions to make, that’s all.[/QUOTE]
Ahh! All except # 1 are valid reasons.
I’m curious how anyone of you who say someone can’t make a living with 10 or 12 grand in a trading account, if you don’t know the person’s trading plan or trading style. Example if someone said to us I have 10 grand in my account. 500 :1 leverage
I’m using PA, TA ,Fundamental, Sentiment or whatever My plan is to take trades that offer a 2:1 risk ratio and I’m trading off the daily time frame and trading 3 days a week. Now if you said no matter what trading method that person is suing there’s no way to make any kind of living off a 10 grand account I would agree as I’m sure most would.
But on the other hand what about the same 10 grand account with 5:1 leverage, with a trader who trades Monday to Friday only when the London and NY exchanges overlap and uses a strategy where the trader trades bigger lot sizes, more trades but smaller time frames, with a goal of increasing his/her account by 1 or 2% per month on average.
The answer may still be no to both, but before you can answer if it’s possible or not, don’t you need more info than what’s in the traders account?
[QUOTE=“gp00053;532812”]I’m curious how anyone of you who say someone can’t make a living with 10 or 12 grand in a trading account, if you don’t know the person’s trading plan or trading style. Example if someone said to us I have 10 grand in my account. 500 :1 leverage
I’m using PA, TA ,Fundamental, Sentiment or whatever My plan is to take trades that offer a 2:1 risk ratio and I’m trading off the daily time frame and trading 3 days a week. Now if you said no matter what trading method that person is suing there’s no way to make any kind of living off a 10 grand account I would agree as I’m sure most would.
But on the other hand what about the same 10 grand account with 5:1 leverage, with a trader who trades Monday to Friday only when the London and NY exchanges overlap and uses a strategy where the trader trades bigger lot sizes, more trades but smaller time frames, with a goal of increasing his/her account by 1 or 2% per month on average.
The answer may still be no to both, but before you can answer if it’s possible or not, don’t you need more info than what’s in the traders account?[/QUOTE]
The question really is… “What is a reasonable monthly account gain that can be replicated every month for the rest of your working life” … Once this number is decided on it is simple math to determine what account size you need in order to generate a middle class income.
what is middle class income? 20T USD monthly?
[QUOTE=“FastStare;532818”]
what is middle class income? 20T USD monthly?[/QUOTE]
According to the social security agency… The national average wage index for 2011 was $42,979.
So that’s $3,580 a month… So you’d need $35800 in your account if your monthly account gain was 10% for a year.
To not have debt isn’t a valid reason?
It’s freedom to not have a monthly payment on things. Where I’m at now, I can give notice, and bail without having it hanging over my head.
And if/when I do own something, my plan is to sell it on terms. I’ll make interest of someone else, but I don’t want them making interest off me.
Just different perspective is all.
It’s a bit pricey I guess. I’m still lucky that I born at 3rd world country I guess. lax life with suck govt. lol
[QUOTE=“Master Tang;532824”]
To not have debt isn’t a valid reason?
It’s freedom to not have a monthly payment on things. Where I’m at now, I can give notice, and bail without having it hanging over my head.
And if/when I do own something, my plan is to sell it on terms. I’ll make interest of someone else, but I don’t want them making interest off me.
Just different perspective is all.[/QUOTE]
Not in the respect to a mortgage it is not… Interest rates for a 30 year mortgage was as low as 3.2% in December … Long term inflation rates are a tad higher than that… So essentially you are making money on the loan at that rate over 30 years… Not to mention the appreciation you will likely get on a home.
$1000 monthly rent is $1000 you’ll never see again…
$1000 mortgage payment is about $650ish that you will see again.
No matter where you get up and go you will have to pay rent lol… Unless you plan on living in a tent. So it’s not like that expense goes away if you decide to “get up and go”.
what if I will gain 20-40% annually? how much I need capital?
[QUOTE=“FastStare;532828”]
what if I will gain 20-40% annually? how much I need capital?[/QUOTE]
20-40% Annually???
Well 20% you would need about $200,000ish and 40% you would need about $100,000ish
is it decent having 40T USD income? Will I have travel expenses with that budget? is it for basic needs only/
Its because Master Tang has a very odd idea of value based investing and trading, and does not appear to be living in the real world. I’ve been to Las Vegas, and I wonder if he wasn’t one of the slightly unkempt old guys having a go at the video poker tables at the 7-11 trying to make some money?
[QUOTE=“FastStare;532836”]
is it decent having 40T USD income? Will I have travel expenses with that budget? is it for basic needs only/[/QUOTE]
Depends… If you are single… Don’t have debt… And are careful… Then 40,000 a year will leave some money leftover after all the expenses for fun stuff.
If you are supporting a family with that then you won’t have much leftover.