I was wondering if I make around 700 pips each year and start with $1000 how much can I expect to make at the end of that year.
Loads…
Can you elaborate on that…
I’m really not sure what money management I would follow but I would probably only risk 1 or 2 percent of the 1000 each time.
This just gets a little confusing to me since I’m really not sure how to value a pip. I mean if I risk 10 dollars and made 1 pip how much would that be. Would I profit 20 dollars. Basically doubling my money.
So if I made 700 pips would I make 14000 each year, if I risk 10 dollars everytime which I know it would be more since when you make a little money the 1% will be greater everytime.
I will try to standardize it for you. Good traders can make 30-60% per year.
It depends on a lot of factors, like you say how much per this and how many wins to losses and all that, these are the least of your worries, what you need to know is that if you learn to trade forex, your money worries are over.
The profits can be astronomical, you can potentially double your money each week.
I shan’t comment, there are too many long and lingering painful threads about how much you can make. I know what I know and I know it’s quite a bit more than that.
I gotta say thanks for the very fast replies.
Basically I was just curious because I only have 1000 to start with and want to know roughly how much I could make by getting 700 pips each year.
Also the whole pip to money value is something I can’t grasp.
if you put $2 on a pip and you win 10 PIPS you get $20, with 400:1 leverage you could put something like $50 a pip on, but you could never risk that much.
Can you explain that a little bit more. What do you mean I could never risk that much.
Have a look at this thread, it will help http://forums.babypips.com/newbie-island/34502-probably-stupid-question-about-lot-sizes.html#post197984
If you were to start with only 1000 dollars would u use leverage or not. If so how much leverage would you use.
of course you would use leverage, you must have!!!
1000$ without leverage would buy you 1000 unit of currency only ( and even would not buy that in case of some pairs), which is 1 micro lot/10 cents a pip. make your 700 pips a yr, and you have a solid 70$ gain, or 7%…all this with active investment.
but lose 100 pips at some point from your starting balance and you wont be able to open any trade for sure…not enough equity to open one with no leverage ( ie 1:1 lev.)
the sad problem that all you have is $$$ signs in your eyes, already know that you will make 700 pips a yr, but yet no idea about the basics, and definately no acknowledgement that you can lose just that easily and just that fast.
but sure the whole horizon is the possibility:
you can lose 1000$ max, and you can maki limitless money. like a lottery ticket, pay 1$, and win 100 million…are you feeling lucky?
It all depends how well you trade. 30-60% per year is only 3-6% per month with 2 months of vacation :p. 3-6% is easy to achieve, 10% a month is realistic, 20-30% per month is possible, 40%+ per month (without over trading or and keeping risk minimal) is certainly possible, but I would not expect it.
I’d say look for 10-20% per month, more than that is great but 10% is still nice.
$1000 is a good amount to start for your first forex trading account, in my opinion. But, I suppose it means different things to different people.
I suggest your initial account should be funded with enough money that, if you were to lose it all, you would be pretty upset, but not devastated. You want to feel some pain because an account loss would have valuable lessons you could learn from the experience. What you don’t want to do is treat the account like a lottery ticket, gamble or rainy-day money.
I think for most people the sting of losing $1000 would be just about right.
Don’t get me wrong, I’m not trying to be negative here… but the fact is that most good traders will lose their first account(s) while they are learning. But the reason they continue onward is because during that experience they start to learn the potential of this new endeavour they have taken up studying. At some point it becomes a no-brainer to re-fund your trading stake.
Yeah it does sound like I have $$$ signs in my eyes but I was just going at this as an example to see what I could potential make in a year. To see if it would be feasibly to even make a living at this in the near future.
So you are basically telling me that if I make 700 pips with a 1000 dollars in a year I would only make 70 dollars. I think I’m missing something from your post.
“If you were to start with only 1000 dollars would u use leverage or not. If so how much leverage would you use.”
the answer was if you dont want leverage, this is the most your 700 pips could make.
Starting with a $1000.00 is not bad. How much 700 pips represents, depends on how you acquire those pips.
700 pips off one trade? 59 pips a month compounded? 13 pips a week compounded?
What is the amount your willing to risk? 1%, 2%… 5%?
No one can answer that question…
My humble opinion is that if you start with $1000 and its your first account, you will lose most of it probably with-in the first 3 months. Once you get the hang of trading and you start with $1000, then I would think you could earn anywhere from $3000 to $8,000 in a year…
So what is the normal leverage that I would use with 1000 dollars and what would that profit come out to be with 700 pips.
Mate, read the school on leverage, it has nothing to do with pips… It will all become clear after that
