In a earlier thread i have posted i asked whether its possible to have around 5 pips of profit each day consistently with a thousand dollar account which adds up to $50 dollars of profit a day. but the reply here have been so far pretty bleak.
so im wondering what is the average return you can expect from 1000 dollar account with proper management is it 1% (i.e:10 dollars) 2% or 3% etc…
So you’re trying to count the eggs before they’re laid? Or the ‘average’ eggs to be laid.
At $10/pip, that’s one standard lot (100,000). Required margin @ 50:1 is $2000. You’ll be overtrading which is not “proper management”. Add the spread to your 5 pip goal and its a 50% charge on your projected profits.
If you can get any positive return then that’s really good.
Depends on the amount you are risking per trade and your average reward to risk ratio of your setups.
For example, as a beginner, and pro alike, you are recommended to risk a maximum of 1% per trade. Le’s say you are a intraday/swing trader, that uses an average SL of 30 pips, and TP of 70 pips. What is that in terms of reward to risk? 70:30 or in other terms, 2.33:1.
So if you were to risk 1% on that particular trade, and is successful, you’re looking at 2.33 times the amount you have risked. In this particular trade you would have made 2.33% return on your balance.
Of course, you would adjust your lot size accordingly depending on your risk percentage and SL size in pips.
Now if you were to trade with $1000.00USD, 1% risk would be $10.00. With a SL of 30 pips, per pip movement should be equal to $0.33 and you would adjust your lot size accordingly. And with a 2.33:1 RRR, it would equate to $23.33USD in profit, which of course, is your 2.33% return.
You could even set a SL of 3 pips, and TP of 7 pips and get the same results, it all comes down to ratios, in my head anyways.
how do you adjust the lot size accordingly as wriiten above “1% risk would be $10.00. With a SL of 30 pips, per pip movement should be equal to $0.33 and you would adjust your lot size accordingly”
Well, from your original post, I can tell that you know that 1.0 Standard lots equals $10.00USD/pip, for the most part. (Pairs where USD is the latter pair, GBP/USD or EUR/USD, etc.)
So wouldn’t that mean 0.1 Standard lots equals $1.00USD/pip? And 0.01 Standard lots equal $0.10USD/pip? So in order to make 1 pip movement equal $0.33USD, you would need how many lots…
… If you got 0.033 standard lots, you are correct!!
Unfortunately, standard lots only go in increments of 0.01 at the minimum, so you would need to open a mini account.
1 mini lot = 0.1 standard lots.
So you would need 0.33mini lots, with a SL of 30 pips, and risking 1% of $1000.00USD.
Nirvaan, the best way to answer your question on how much you can earn is to start off with a demo account, gain the mastery of a methodology to trade by, and then you tell me. Simply put, I know how much I can make, but I have no idea how much you can make.