Wow, Manxx, you really are the math head! What is your background? Do you trade for a living? Do you use your math at work? What kind of work do you do?
As far as my account amount goes: If I earn a consistent net profit, I’ll add a portion regularly from my work income, and there may be another source I can draw from, as well. What I’m truly counting on though, is good trading and good compounding.
Here’s a quote from Clint, from Honorary Member Q&A: Clint
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[I]I would urge newbies to learn the power of COMPOUNDING modest, but consistent, daily profits — and, then, letting those profits grow exponentially to build wealth.
There are three elements here:
modest profits — don’t take huge risks swinging for the fences;
consistent profits — this means accurately following a trading method which has a high win-ratio; and
compound profits — let your profits accumulate in your account; and, as your account grows, increase the size of your trades in proportion to the size of your account.
If you can consistently AVERAGE a net profit of just 20 pips each day, you can earn an average 1% increase in the value of your account each day, while trading with no more than 5:1 actual leverage, and limiting your risk to less than 2% on each trade.
A steady 1% increase per day
= a little more than 5% per week (compounded over 5 trading days per week)
= a little more than 24% per month (22 trading days per month)
= almost 1,000% per year (240 trading days per year, allowing for vacations and holidays).
Where else can you legally make 1,000% per year on your initial capital, without taking extraordinary risks?
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Pretty impressive for just 20 pips per trading day. I could easily see the 24% a month. 1,000% a year? I hope he’s correct, but I haven’t plugged the numbers into a formula to check. But 24% a month? Cowabonga! That’s something to shoot for!
I’m motivated to learn well enough to go live, and then max my trading out without forgetting about the rest of life!
Those are my intentions and goals.
Have a great day,
Norm