No, I was saying it’s an error to look at gains expressed in percentages based on account capital from some other time. I base everything on what I have at the moment of the initial entry. If I risk 2% and make 3% it’s a 1.5 to 1 trade no matter what size account I am trading. If you start with a small amount and compound aggressively, your gains will be many hundred or thousand percent based on the initial risk capital.[/QUOTE]
Cheer for clearing that up I think I was tied when I first read it .
[QUOTE=“snake24;523576”]Yeah it’s easy to calculate all of this but can you make 500 pips a month? Is it guaranteed? Comeon of course not. Some months you make 500 or more other months you don’t even make 1 or you lose and then the other 500 or more pips you made all goes down the drain.
The only reason why you chose 500 is cos it looks small so ppl think hey that’s easier than say a 50k account then you could maybe use 1 standard lot and make 500 pips a day in which you must be guaranteed to make those pips and not lose any money.
You didn’t even factor in the losing rate unless you mean to say you have a 100% winning rate. No the only way to make sure you don’t have any losses is to probably stop chasing after every trade in which you probably wouldn’t hit the 500 pip target monthly.[/QUOTE]
I have base it off 500 or 250 pips a month
ON average ,
I understand you will have losing months . But it base on average
Unless your a very long term trader ( week or month) you should be basing all your avg per month. Most trader here hold trade for hours , days or 1or2 week .
This thread isn’t about money management and way you can earn , and how to earn it - there many better thread with more info how trade ( I am not a gru/fx pro/teacher)
Yes you could open a trade and hold it for 6 month . First month you could be down , last month you could be up .
just about the compounding effect
You can cal your return yearly if you want to , But your still going to have a average per year
[QUOTE=“snake24;523576”]Yeah it’s easy to calculate all of this but can you make 500 pips a month? Is it guaranteed? Comeon of course not. Some months you make 500 or more other months you don’t even make 1 or you lose and then the other 500 or more pips you made all goes down the drain.
The only reason why you chose 500 is cos it looks small so ppl think hey that’s easier than say a 50k account then you could maybe use 1 standard lot and make 500 pips a day in which you must be guaranteed to make those pips and not lose any money.
You didn’t even factor in the losing rate unless you mean to say you have a 100% winning rate. No the only way to make sure you don’t have any losses is to probably stop chasing after every trade in which you probably wouldn’t hit the 500 pip target monthly.[/QUOTE]
I pick 500 and 250 just as “ideal” target
If you have $50k account is doesn’t matter - the rules still apply
For every $500 = 0.01 lot with target of 250 pip a month
So for you example
50k trading 1.00 lot X 250 pips in a month = $2,500
That is still the same as
$500 trading 0.01 lot X 250pips in a month =$25
They are both 5% a month
Ps - that why fund manger work in points and pips . It stop the emission of saying " oh crap I just lost a million $ " but " I am down 3 point "
Every manager get “x” dollar to invest and have targets of “xyz” with Max risk of “abc”
Then the boss will increase there balance with experience and return …, the rules still stay the same
[QUOTE=“EDDY MO;523561”]Aim small , trade for long , be successful
…
This is exactly my motto - and look at me I am actually closing my 2nd year trading with zulutrade.
those who believe that will make 1M out of 1000 usd on 1: 1000000 is simply a myth! Do the math doesnt actually add up![/QUOTE]
I believe you can turn your $1000 to a million … In a few years
Best of luck
I agree with you that some people have unrealistic expectations.
But while I believe that hard work is CRUCIAL, i think that luck plays just as a big a factor, at least in business. but as the saying goes, “the harder I work, the luckier I get”.
I think for trading, risk and money management may be the most important. You can be wrong 90% of the time but if you make big money on the 10% of the time that you win, you can still come out successful.
Of course, being wrong most of the time can have psychological effects that may be difficult to overcome
I agree with you that some people have unrealistic expectations.
But while I believe that hard work is CRUCIAL, i think that luck plays just as a big a factor, at least in business. but as the saying goes, “the harder I work, the luckier I get”.
I think for trading, risk and money management may be the most important. You can be wrong 90% of the time but if you make big money on the 10% of the time that you win, you can still come out successful.
Of course, being wrong most of the time can have psychological effects that may be difficult to overcome :p[/QUOTE]
That a good point .
I know my self I am pretty avg trader . I am wrong at least 70%
Think I said it before on a different thread . I always trade with good risk to reward . But over a month I archive at least 200 pips a month .
Since following some great fellow Babypip thread. I have been avg 1000 pips last 2 months
Can’t wait until I have more time to study and trade ( and skill and luck) to make 2,000 pip a month like some of the other trader on baby pips
all the best in your trading - many pips to you!! keep in mind that manual trading is not easy and being wrong 70% of the time sounds a lot like gambling to me xe xe
maybe would be better to go back to old frightful following on zulutrade?
Here’s what I find out about people who do those number projections. There’s nothing in their calculation about experience, that you pick up in the early years that helps you in the later years. In the early parts, most of your experience comes from other traders. Trend is your friend, never trade a sideways markets, indicators are no good, indicators are good, price action is the best, have a plan, with proper money management and work it using patience and discipline etc etc. I think with your own experience, you get better at gathering and filtering information that’s available which helps you to make better decisions.
Think about the title of this thread and then ask yourself, when did I realize for myself that this is the worst advice I ever got. Was when I first started trading or a little bit down the road. I think most people would say down the road. I have papers taped to my screen, my favorite and the longest is “don’t hold on to losers” I put it up there when I first started trading and kept moving my stops cause I just knew the market would turn around: and besides that the experienced traders were saying give the market time to work so I did
The money management plan you set out Billy is fine hey. True there will be losing months but I’m sure a good trader could achieve it. If a noob like me can turn $50 into shy under $200 since i started a few weeks ago. working with more capital, always be in moving markets, using minimal risk to reward and being disciplined is the key i reckon. I would love to follow your journey with this and try it myself.
i am a trend and harmonic trader , but i have been using very high Risk/rewards at least 1:3 some time 1:10
so i aim to stop lost 20 pip but hold 200
all trade have trailing/ break even so i would say i only lose money on maybe 30%
If i have a target of 200 pips , and it move 50 up … then back down 45 ,( trailing stop take 5 pips ) i would close the trade out and call is a [B]incorrect trade [/B]
it like playing blackjack , i dont call a “push” a win ( but at least you didn’t lose)
I hope we’ll all make the million, until then I try to improve my skills on demo Error | Myfxbook, I also have a live account but I lost a big part of it because I made trades at the beginning when I wasn’t prepared, now when I look back I see what huge mistakes I was doing but I will try to build it.
Right right!
So the worst you are willing to risk is 30% of your account?
Are you trading from live or from a demo account ?[/QUOTE]
Don’t think I said that .
I have a bad habit of risking 10% I know I should be 5% or less … Never would I risk 30% , that would make me cry if I lost that much in a month
Yeah I know risk is too high so I will chuck in some cash…eventually… I am averaging easilly 250/ week (had major losses) but now consistantly winning from playing the bounce and actually using stop losses. Nick B’s method works really well for me and I’m better for reading it.
He did??? Too bad!! Not good. I guess he was trying to spam, as we all know spamming is quite a harsh measure.
Btw, friend, how are you trading zulutrade? are you a trader or a follower?
i made only 900 pips last month but if i follow every trade i would of make 1300
(for the hater out there - 17% but i was risking 12% of my total account if i hit all my stop lost at once)
xe xe