FOREX: Secret to early retirement?

[adamgalas]

So I have caclulated that, for a married couple to retire comfortably they need $3 million, so that they can earn $150,000 in interest from a high yielding, (5%) money market fund, such as HSBC direct, which I currently use.

This would allow them not only to live comfortably, but also afford health insurance, and put aside at least $25k each year back into the fund so that, as they get older there net worth actually grows, dosn’t shrink.

Thus I was planning to retire the moment I reached $3 million.

But then I got to thinking:

You only need $3 million because you are earning 5% in pre tax interest.

If you could earn 10% then you need 1.5 million and you can retire 10 years earlier.

But how to make a guaranteed 10% return each year? Stocks? No, even though stocks, especially small caps have averaged 11% annually for the last 50 years, bad years can occur, even 3 in a row and then you are screwed.

But suddenly it hit me! FOREX!

I am currently testing 3 promising system, they trade useing 3 hr or 1 day charts.

1 day charts, from what I see offer 5 trades/week, easy.

3 hr charts offer 10 trades/week easy.

This means that in the course of a year you have at least 250 trades!

And by risking only 1% account/trade, and often making more than that in wins, as a good system does, (and if I can’t find a system that consistantly makes money I won’t trade FOREX at all, that would be stupid) then over the course of a long enough period, profits are guranteed!

And with 250-550 trades/year,(for the smaller 3 hr system) 1 year is a long term period!

Thus, a good system will make money each and every year!

And it will make a lot more than 5% or even 10%!

For example if a system consistantly makes .43%/week, you have 25% returns over a year!

That means that $600,000 is all you need to retire!

And if you can earn just a tad high than $500,000 will suffice!

Well, I should be able to get that much in 20 years or so, meaning retirement at age 40!

Or if I like my job enough, (and having invested all the time, energy and money to become a doctor, I hope this is so) I may choose to continue working, and keep pileing discretionary income into investments and FOREX and grow to be a millionaire because I can,(My secret dream is to be able to afford the genetic treatements and nano medicine to keep myself healthy, active and alive well past 100, until I can download my consiousness into a computer or cloned body and live forever, for that you need lots of money.)

So I guess the question I have is this:

Is my logic correct? Does anyone out there who trades on 3hr or 1 day charts lose money over the course of a year?

Wouldn’t a solid system, religiious money management and the patience of 250+ trades guarantee a profit?

Isn’t that a definition of a good system?

This is a very exciting idea, and I hope the 3 systems I am demoing work out in the long run.

[halo3plz]

your post made me laugh a few times… i think life would get boring if you retire at 40, and i certainly dont want to live forever in a computer hard drive lol.

i think it would only take a couple hundred thousand to earn solid return thru dividends if you are good at picking stocks, since they pay 4 times each year.

also, you can target to earn 40% return per month in forex. which only requires 20 pips per day. so 400 pips per month.

[kingen]

Have you concidered hedge-funds that trade different markets, Mr. Adams?

Since they trade different instruments, and also use shorting, they are supposed to have consistent returns even during bull markets.

I love stocks, but got dragged towards FX because of the enormous leverage. This being said, I’m a stock trader, not an investor, buy and hold isn’t for me. So technically, trading it isn’t much different.

[abner]

i make an average of 10% a month most months are 10% or more with a few months being 5% or more, i started last year with $100 and in 3 years I will be retired.

[paco99]

Adam,

Anything is possible, but keep in mind that one can make anything look possible in a spreadsheet.

I would highly recommend testing and retesting your 3 promising systems using demo accounts and also backtesting them far enough to where you feel comfortable that they will continue to be successful.

Once you move to a real account, start out with small amounts. Trading a live account is a little different than with a demo account where you could care less if it works or not.

Good luck!

Do you care to share your 3 promising systems? Some of us are still trying to get where you want to be.

So I have caclulated that, for a married couple to retire comfortably they need $3 million, so that they can earn $150,000 in interest from a high yielding, (5%) money market fund, such as HSBC direct, which I currently use.

This would allow them not only to live comfortably, but also afford health insurance, and put aside at least $25k each year back into the fund so that, as they get older there net worth actually grows, dosn’t shrink.

Thus I was planning to retire the moment I reached $3 million.

But then I got to thinking:

You only need $3 million because you are earning 5% in pre tax interest.

If you could earn 10% then you need 1.5 million and you can retire 10 years earlier.

But how to make a guaranteed 10% return each year? Stocks? No, even though stocks, especially small caps have averaged 11% annually for the last 50 years, bad years can occur, even 3 in a row and then you are screwed.

But suddenly it hit me! FOREX!

I am currently testing 3 promising system, they trade useing 3 hr or 1 day charts.

1 day charts, from what I see offer 5 trades/week, easy.

3 hr charts offer 10 trades/week easy.

This means that in the course of a year you have at least 250 trades!

And by risking only 1% account/trade, and often making more than that in wins, as a good system does, (and if I can’t find a system that consistantly makes money I won’t trade FOREX at all, that would be stupid) then over the course of a long enough period, profits are guranteed!

And with 250-550 trades/year,(for the smaller 3 hr system) 1 year is a long term period!

Thus, a good system will make money each and every year!

And it will make a lot more than 5% or even 10%!

For example if a system consistantly makes .43%/week, you have 25% returns over a year!

That means that $600,000 is all you need to retire!

And if you can earn just a tad high than $500,000 will suffice!

Well, I should be able to get that much in 20 years or so, meaning retirement at age 40!

Or if I like my job enough, (and having invested all the time, energy and money to become a doctor, I hope this is so) I may choose to continue working, and keep pileing discretionary income into investments and FOREX and grow to be a millionaire because I can,(My secret dream is to be able to afford the genetic treatements and nano medicine to keep myself healthy, active and alive well past 100, until I can download my consiousness into a computer or cloned body and live forever, for that you need lots of money.)

So I guess the question I have is this:

Is my logic correct? Does anyone out there who trades on 3hr or 1 day charts lose money over the course of a year?

Wouldn’t a solid system, religiious money management and the patience of 250+ trades guarantee a profit?

Isn’t that a definition of a good system?

This is a very exciting idea, and I hope the 3 systems I am demoing work out in the long run.