Hey guys! I want to start trading forex tomorrow. Do i calculate this right:
1000$ pay in
I want to make 50$ a day
P/L ratio 2:1
Makes 25$ Risk or 2.5%
If i want to trade on the 5min chart and risking 10pips, take profit with 20pips
1pip = 2.5$
So, i have to trade 2,5 minilots. Right!?
Thank you all for every tip!!
I want.
You so funny.
Save your money bro. I help by not answering your question.
You only want to make 100% per month on your account-size? Nothing wrong here, at all. 
If you’re serious and not trolling, this will help you - Pipcrawler’s Thoughts on Setting Newbie Expectations
Bob, if you dont want to help, then f*ing just ignore it.
You see i make mistakes. i would like to have some help so, help would be great!
What a prick.
Thank you lukas!
I do not want to make 100% per month, no. As i said, ima calculation noob;)
But up to 2.5% risk per trade sounds correct i thought…?
Ps.
Thats how help looks like, @_bob.
Pps.
Ok, i take it back. The link is no good help.
I know it is not easy!
I do not have expectations!
I now its learning by doing!
But i cant learn if i dont start!
I only can start with the right risk management!
So please, help me with my calculations!! 
Oh Im trying to help bro. Im trying to save your $1000.
But has not your demo account answerred this question for you.
Oh and you clearly said $50 a day on a $1000 account. Pen bless you!
PS the link works lazy trader
Dont mind my 1000$, there are enough of them where they coming from.
Just help me understand my mistake.
I clearly dont get the lot size converting.
1 Lot = 10$ / (10 pips * 25$) = 0.04 lot
And now?
There is soooo much more to this than just saying I want to risk X% per trade and make $Y dollars.
First, what is your win rate? IE what percent of your trades in your demo account are positive?
Second, what is your risk:reward ratio? IE in any given trade how many pips of risk do you take to earn how many pips of reward. Personally, I like 2:1 so if my risk is r then my reward is 2r.
Third, do you have a strategy that you can consistently execute in real time that will earn you those reward pips?
Let’s take your scenario and walk this through.
We’ll assume that you want a max risk of 2.5% and not a per-trade risk of 2.5%. Total risk is equal to your per-trade risk multiplied by your total number of trades. To keep this easy we’ll assume your trading plan limits you to one open position (you do have a trading plan, right?).
2.5% risk on a $1,000 account = $25.
Let’s assume you are day trading with a 10 pip stop loss. This allows you to trade a position size that sets your pip value to $2.50. If you are trading a currency pair such as EUR/USD (since your account is denominated in USD) then you can trade a total of 25,000 units or 2.5 mini lots. (Position Size Calculator - BabyPips.com)
This means that you need to earn 20 pips of reward next, which would earn you $50.
To hit a daily average of $50 over the course of a month, you would need to make $1,000 per month (assuming 20 trading days per month) - that is where the 100% return comes from. To earn that in our example at 100% win rate, you would need to take 20 trades or 1 trade per day. However, you will not have a 100% win rate - no trader in the world does.
Let’s assume your win rate is 40%. So with 1 trade per day, over the course of the month, you might see the following:
Total Wins: 8 @ $50 per win
Total Losses: 12 @ $25 per loss
Gross Profit: $400
Gross Loss: $300
Net Monthly Profit: $100 (10% return)
So now we need to get you to a net monthly profit of $1,000. We can do that in one of two ways.
First, increase your account size to $10,000. This will add an extra zero onto all the numbers, and give you an average of $50 per day net monthly profit.
Second, increase your risk. This allows you to make bigger trades by increasing your position size. This is not something I recommend. Following is what the numbers look like with 10% total risk based on a $1,000 account.
Total Wins: 8 @ $200 per win
Total Losses: 12 @ $100 per loss
Gross Profit: $1,600
Gross Loss: $1,200
Net Monthly Profit: $400 (40% return)
Since we can see a larger risk in this example leads to a higher return rate, you might think that increased risk isn’t all that bad. That is because in our example we are using a very small sample size. However, if you have tested you strategy, then you will know how many max losing trades in a row your strategy is expected to produce.
Some strategies produce 20-30 losing trades in a row. If you took 10% account risk, and lost 10 trades in a row, you would blow your account and have to quit or put more money in.
Short answer: to earn more money, increase your account size. Assuming you have a consistent strategy that has been tested and found to have a positive expectancy in either win rate (over 50%) or via risk reward (40% win rate requires 2:1 risk to reward ratio to be profitable, higher ratios need lower win rates) then increasing your account size might increase your net monthly profit.
Based on your posts, you cannot yet attain this level. Learn more, demo trade for a while, and adjust your expectations accordingly.
Wow, thank you seymour!
Winrate is 50%
Ratio 2r
Of course only 1 trade a time. Still learning
My goal is simple: to make 50$ per trading day. I never wrote i want to trade every day.
So the 100% profit/month part is not important.
I dont have a monthly goal anyway.
I just just want to trade on my feee day and learn it - with real money. I need the risk to learn.
So, in the end i was right with my pip calculations…?
Open an account with $100 and trade that then. Put the other $900 in a savings account and let it accumulate interest. I bet you will make more on the savings account than you would on your trading account.
You won’t make that with $1,000. It’s just not mathematically possible without taking on excessive risk, and by taking on excessive risk, you can potentially lose more than the $1,000 you deposit with your broker.
You already lack understanding… if you specify a daily goal, you automatically have a monthly goal. If you want to make $50 per trading day, and you have X number of trading days per month, then your monthly goal is $50 * X.
As a newbie, you will not earn $50 per day that you trade. Well, unless of course, you take a huge risk and only trade 1 day a month - then you might hit $50 per day that you trade. Remember, just because you don’t trade 5 days per week doesn’t mean there are not 5 trading days per week.
As you wrote it, you want to make $50 per trading day. There are 5 trading days per week, and let’s assume 4 weeks per month. $50 * 5 is your weekly goal of $250. $250 (your weekly goal based on your goal of $50 per day) * 4 weeks is $1,000. You are putting $1,000 in your account, so with the rate of return formlua being Net Profit / Cost of Investment that would mean your net profit is $1,000 and your cost of investment is $1,000 (from your initial post) so $1,000 divided by $1,000 is 1. Multiply that by 100 to get 100 and add a percent sign to get 100%.
So your goal as you stated is to earn a 100% return on a monthly basis…
Perhaps maybe brush up on your math a bit?
In other words, let’s take your daily goal of $50 per day, and a $25 cost of investment (your risk for 1 trade) and that is a 200% return.
If you trade ten times per day, at a 2:1 ratio and 50% win rate means you would earn $250 less losses of $125 for net profit of $125 divided by the $250 risk for a 50% return. That is assuming you split your trades exactly… just because you have a 50% win rate doesn’t mean you will win 50% of the time every day. You might have a whole month of nothing but losing trades, but then follow it with a whole month of winning trades - that’s still a 50% win rate.
At this stage, your focus should be on learning your trade strategy and developing the discipline to execute it consistently over a long period of time (think years, not days). Can you stick to your strategy after losing 20 trades in a row? After losing 50 trades in a row?
The goal of a trader is to be as efficient as possible with capital and take as little risk as possible. Your goals are not compatible with trading. You sound more like a gambler looking for some thrills and the possibility of a high payoff.
It would be very risky if you want to gain 50 USD out of 1000 USD investment. Please dont consider forex as gambling platform. You can expect 5 to 10 percent out of your investment. Learn to trade first. You will gradually understand every calculation