Guys,
On one forum they say getting 2% consistently is easy.
On another forum they say it almost impossible (consistently)
Here is how I calculation on my demo
Say your account is 1000 USD, risk is 2%, therefore I risk 20 bucks a trade
Let’s say average stop loss is 25 pips, so position is 20/25 = 0.8 or 8 minilots.
To get my 2% on my account = 0.02 * 1000 = 20 (2% gain)
20 (gain) / 0.8 (minilots) = 25pips
That means I need 25pips from the market so I can get my 2%.
Is my calc correct?
Only one slight error. Where you said, “Let’s say average stop loss is 25 pips, so position is 20/25 = 0.8 or 8 minilots,“
it should read, [B]”… = 0.8 mini-lots or 8 micro-lots.”[/B]
One other point. Your calculation is based on the tacit assumption that 1 pip is worth $1 per mini-lot of position size. This is true only for pairs having the USD as the cross-currency. As long as you understand that the $1-pip-value is a generalization
(and there are exceptions to it), then you’re fine.
As for your larger question, “How realistic is a 2% per day gain on a trading account?” — the answer depends on trading skill.
For a skilled trader, it’s entirely doable.
What you really want to know is: how realistic is a 2% gain per day [B]for you[/B]? So, the question becomes: [B]are you[/B] a skilled trader? If your skills do not rise to that level yet, [B]are you[/B] willing to put in the time and effort required to learn and improve, until you become a superb trader?
If your answer to either of the last two questions is ‘yes’, then [B]for you a 2% gain per day is realistic[/B].
Most traders have made way more than 2% per day many times. But, can they do it day-in-and-day-out, week after week, year after year? Your question implies [B]averaging[/B] 2% per day over the long term. Don’t fool yourself: that’s not easy to do. If it were easy, every kid with a computer would be doing that, instead of working at McDonald’s.
So, if you believe that 2% per day is attainable for you, the next question is: [B]how much do you want it?[/B]
Wait a minute … my calculation is wrong? … I’m risking 2% of 1000 is 20 bucks per trade, no?
So if I buy 1 position of 8 minilots ($0.8) for usd pair (sorry, yes I understand about cross currency pairs and the pip value is different, just wanted to simplify) Therefore stop is 25 pips (20 bucks risk divided by 0.8 minilots), this is right isn’t it??
But if I buy 8 microlots ($0.08), SL would be 20/0.08 = 250 pips???
Makes sense to me unless I’m really losing it 
Will comment on the 2% consistency thing later after I nailed this calc, thanks Clint
8 micro = $0.80 pip assuming usd cross
8 mini =$8.00 pip
8 standard = $80.00 pip
you got your terminology mixed up but the math right.
If you want $0.08 per pip you need nano lots or flexible lot size.
Hi,
I don’t know about your calculations (I’ve not bothered to check them) but Clint is 100% correct in everything that he says and, in particular, he notes that AVERAGING 2% per day is not that easy. What you need to think about is what happens when you DO NOT make your 2% for the day? As a matter of fact there is table floating around here somewhere that indicates how much of a profit you have to make just to cover a previous loss and it (the required profit on your subsequent trades) grows exponentially. In other words: if for just one day you don’t make your 2% then you have to make MORE than 2% the next day JUST to ‘catch up’ as it were and THIS is where the problems begin. NOW you have to ‘shoot’ for MORE pips the next day and, if you lose again, then you need to ‘shoot’ for EVEN MORE pips the NEXT day. This will almost always lead to overtrading, not following your trading systems, second guessing your own trading systems, and ‘tears’!!! LOL!!! While 2% per day may only equate to a couple of pips it’s just not realistic. If someone were to ask me: set your goals weekly at VERY least (or preferably monthly).
Regards,
Dale.
Well said. The calculation is the easiest part to your 2% a day. 2% a day of deposited capital would work out to be 40% per month, not saying this is impossible but highly unlikely. Also if you are risking 2% to gain 2% its gonna be hard to catch up after a couple loss. Try risking less to make more. Eg. risk .5 or 1% and aim for a 2% gain, by doing this one win will cover two losses.
Ahhhh, yes my bad, I mixed up the vocab, thanks.
Thanks all.
I don’t have a daily target as such, I’m just trying to figure out what’s realistic. I’m not really putting a target in my head as I know my trade can run for up hundred odd pips, looking at price action before I eventually close (look at GU now, I got that long when H4 closed a doji above a demand area).
Right now I’m more concern with perfecting my entries and exits with just one micro (and to tame my fear and greed) and so far I’m doing well averaging 80 pips a day! So you see from my initial calc of getting about 25 pips to reach 2% daily target seems darn easy :eek:
I’m also coming up with some magical numbers: Over 120 trading days, risking 2% starting on a 1000 buck account, compound and grow and add more positions due to the ever increase account size, I calculate I can get 10K 
Nice dream but really possible if I ‘can’ maintain 2% a day, that’s the unknown for me
Unless my math is wrong, suppose that you make 2% per trading day times 250 trading days per year. If you started with $10,000 you would have 1.4 million by the end of the year (minus taxes of course).
Not likely in IMHO… If you know anyone who is doing that give me their phone number please.
Setting a daily goal only makes sense to me if you are making multiple trades a day. if that is the case I think 2% is a reasonable goal. Keep in mind your average will be lower. If you are making multiple trades a day I think it makes sense to have a stop point both positive and negative.
2% per day is very easy to make. the only problem is that lose it is even more easy.
never forget: the more you try to win the more you have to risk… and if you want to be a forex winner you need to have a very tight risk managment.
to make fast money you need to risk lose money fast too:(
1.4 mil will be brilliant and possible I reckon, just follow trading plan to the letter!
Seems like if I put a target then more pressure. I’m at the screen for 16 hours a day anyhow so wait for the perfect setup so just trade what I see 
Not interested in fast money. I’ve done that and blew everything.
And also if I do make more money I will not risk more. This is something I promise myself, grow my account by around 2% a day and compound is all you really need to be rich.
My daily goal is 4% with a maximum risk of 2%. If you do not mind waiting for the setup, they almost hand you the money. On the other hand, you also have to be able to quit once you hit your daily goal. No more trading for the day. No exception to the rule. After a loss, there is no need to feel that you have to “get it back”. The market will be there the next day. Over trading is almost impossible, there just aren’t that many weekly open crosses during the week.
If you are interested, stop by THE FOREX STORE.
Markets are too dynamic to have a “daily percentage target”…some days I barely trade because of big news etc. Other days I’ll make as much as I can…when things are moving nicely.
I risk 1% to 2% per trade and I mostly scalp…so I’ve had plenty of 5% + days this year…if I take 2 losses however, I stop for the day. If I average out this enitre past year, my guess is it’s some where around 1.5% per day.
but this is scalping…swing traders really can’t have a daily target because there trades are held longer…more than a day.
News days are the best days to trade[to me] because there is usually more volatility.
At some point 2% compounding, will result in unattainable lot sizes.
And trying for hard fixed target gains on a daily basis, results in making some occasionally questionable trades because of trying to hit a goal.
Been there done that.
Without fail, some of the biggest losses on a live account I have taken, was because of going back for the cherry on the sundae. I wiped out substantial gains looking for that extra bit.
Take what the market gives you with regards to your system, without regretting whether or not you made your daily goals.
correct…not much else to say.
I think thats the holy grail
I’ve been reading “the forex store” … interesting way to see things! 