I want to be realistic as well. If I can make $1mill in a year or more using sound risk management then thats what I want to shoot for. If that is a ridiculous goal and 100k in a year starting off with an account size of $500 or $1000 is more realistic than thats what I want to shoot for. Im not trying to break any forex records or go down in history.
I would say that whole concept is totally unrealistic and unattainable for just about everyone except maybe 0.1% of traders out there. Hey I’m all for dreaming big, but if your just starting out and are expecting to turn $500 into $100k, well I won’t say that’s impossible, but highly highly highly unlikely (ok i’ll change my mind and say that is impossible). As Dale eluded to, if someone is making 100k a month, then they have a pretty big bank role to support that.
I’m afraid to say the I’m with Cdawg on this one. Of course: I, like everbody else (I assume), posts based on the personal experience so, of course, I also say that turning $500 or $1 000 into $100 000 in a year is unrealistic. I base my take on my trading systems and what I know them to be capable of is all. I’m a long-term trend trader so maybe that’s why I don’t perceive it as being realistic. But I’m (almost) sure that there are people here that trade very short timeframes, ‘shoot’ for only a few pips per trade (per day), with huge lots, but still managing risk, and, well, I guess, maybe, given that scenario, it’s possible. All I know is that’s it’s never worked for me. My $1 000 000 is still FAR away (unless, as I mentioned, somehow I manage to borrow the equivalent of that in trading capital, in which case I’ve not doubt I’d have my OWN $1 000 000 in a year after paying back the loaned amount)!!! And that would be taking into account the money that would need to withdraw monthly to pay bills (if you’re going to do this full-time then never forget to take that into account when drawing up those ‘power of compounding’ worksheets).
Anyway and as I’ve noted before: OTHER than not managing risk there is no ‘right way’ or ‘wrong way’ to trade. What is profitable for YOU is what’s important. As for making 3% per day every day without fail: I don’t see that happening either (this concept has already been debated ‘ad infinitum’ on another thread).
All of the above aside here’s a little table of figures that may be 'sobering (I’ve seen these tables before but it’s quicker for me to re-type this one than go searching for a link):
% Loss of Initial Capital / % Gain on Balance Required to Recover (Breakeven)
(Sorry: the ‘table’ idea didn’t quite work out i.e. this software kept removing the spaces do I couldn’t put the figures in nice neat ‘columns’ for you but I think you ‘get the picture’).
My honest opinion: in order to be HIGHLY profitable in this business you need to follow the old saying that goes something like ‘using a sledgehammer to crack open a nut’ (loads of capital and therefore risk managment not being a problem while still making a material amount of money per point / pip movement).
But I’ll say this: I honestly do wish you the best (I’m not wishing you ‘luck’ because that SHOULD not play any part in this business).
I personally think that 3% a day is unrealistic over a sustained period. Having said that, however, I do not believe that 1% a day is unrealistic with hard work and a lot of time, and I only risk 1% per trade. So with 3% risk per trade I guess it ought to be possible, but maybe I am just too risk-averse to try it! Either way, as I said in a previous post, a much lower return than 3% daily will still turn around anyone’s finances. I don’t think that there is any harm in a very ambitious target - indeed, it might be a good thing - as long as one is prepared to keep going even if that target is missed.
Asking a person about their income level is not a silly question… Its just plain rude. In many peoples minds it is on the level of asking how their wife is in bed.
My basic philosophy is target 2 or 3% a day, hope for 10% (yes, I’ve had those days) and be willing to settle for 1%. At that rate, you’ll make at least 200% a year… Who can complain?
man! all these nay sayers! If no one thinks they can make it then why is anyone here? Actually… I do know of someone who went from around 200 to 1mill in about three years but that has to be the exception rather than the rule! You can make it to the top of the mountain but it takes a lot of climbing that’s for sure!
no not 200k just 200, but like I said, I’m sure that’s a rare exception! And he’s still just a kid too! That’s making 20pips a day where 20 pips is worth 2% of your account. I’m more conservative, I’m only shooting for 1% per day
Ok I misunderstood… Yes that does have to be an exception… But then again, maybe not… He and I seem to have the same basic philosophy on how much a pip should be for your account… 10 pips= 1% is the way I started, and the only way I’ve ever traded.
Well I will make number four, then. On an anonymous internet forum that is devoted to discussion of how to make money from the Forex market, asking people for an idea of a realistic percentage return, or the cash return possible from a specific cash starting point, is not rude. We can debate all day whether the numbers posted are realistic, and whether any numbers posted make any difference to the OP’s chances of succeeding - we are all different, after all, and there are many ways to be successful at this, personally having a handful of people I don’t know tell me they make a lot of money would not change my approach to trading - but don’t go over the top, please. It is perfectly possible to present an income as a % return on investment (as size of trading account has a massive impact on trading income, and that will be different for all of us and, initially, is not down to trading skill) without giving away personal information. And if you are not comfortable, you could just not contribute to the thread - the guy just asked a question, at the end of the day, noone held a gun to anyone’s head to force them to answer.
Nah. We are in a trader forum. This question is completely understandable. I can understand that ppl would like to know how others perform. It’s the same if you would ask how a wife would be in a bed in a particular forum, lol.
I was reading a story about the 4 minute mile. Before anyone ever ran a 4 minute mile everyone said it was impossible, highly unlikely, etc. After it was accomplished more and more people started to run 4 minute miles.
I see this as being an example of that. If I listen to all the well intentioned people telling me how unrealistic and highly unlikely it is, then I will never shoot for it. I will simple be satisfied with the results everyone says I CAN achieve
It’s my opinion that when you start with a small account, it is easier to trade more often and make a higher % return as for me, the small amount of money was not anything to worry about, akin to demo trading… there was no overwhelming sense of fear, and when your trading for the cost of a latte at starbucks, it can be difficult to really be disciplined and patient. Hence the “x” number of pips a day or 1-3% gains a day strategies.
Its also my opinion that’s why most new trader with small accounts don’t last long, as they are chasing the market and making bad decisions.
I think you’ll find you will trade very differently once you have a substantial account, I know I do.
If this was a forum on intimacy and sexual relationships then it wouldnt be rude to ask someone how many times a week they have sex or how long does an average love making session last, yet on a trading forum where everyone seems to be a “so called expert” Handing out advice like lolly pops with not a piece of anecdotal evidence to support that they have any idea what they are talking about is absurd.
So Called Expert: “if you want to make real money at this, do it this way.”
Newbie: “What is real money? How much do you make doing this?”
So Called Expert: “I dont see how that is any of your business.”
I can think of at least six experienced traders here on BP ‘anecdotal evidence’ or otherwise. Once you have been trading a year or three its not difficult to spot someone who is offering advise based on 100 hours of experience and someone with 10,000 hours of screen time! Admittedly as a newb this might prove difficult at first but hey, its not as if your being charged $2500-5000 a pop for this level of input is it!
As to declaring their personal income to all on BP… why would they??? I personally would only consider (note I said consider! LOL!!!) declaring my income to my wife and the IRS! In any event this ‘proves’ nothing as has been posted here already. Your income is to a great extent tied to your trading capital. A much more enlightening question would have been… ‘how much in percentage terms can I expect to make after ‘X’ amount of time with the prerequisite study and application’. Or something to that effect?