Am a newbie I need your honest views regarding this plan i have.
Set a daily target of 10 pips. If you are trading a mini account start with a 0.1 lot size, that’s $10 daily, $50 weekly and $200 monthly, which is not bad for a new trader right?
Once you have made consistent profit for 1 month, go to a 0.2 lot size and trade that for another month. That is $400 for that month.
Move up till you get to 0.5 in the fifth month and here you should bank $1,000 for that month by just targeting 10 pips.
I want to start with a capital of USD500 with 1:200 leveraged mini account
Hi Mrwess, welcome to Babypips,
If you are new to trading i wouldnt worry too much about how your profits will compound. You need to focus on one thing and one thing only. Finding consistancy in your trading. Dont worry about how many pips or how much money. It dosnt matter if its only ten pips a week. Once you find consistancy, the profits will look after themselves.
Do you have a trading plan? Have you found a style of trading that suits your personality? Do you keep a detailed log of your (demo?) trades? Do you have proper risk managment in place to protect your equity? This is where you should invest your first few years in trading.
Good luck!
Thanks for your input Hunter.I have demo traded since Jan 2012…i have established a trading plan,i know what signals am looking for before i enter a trade.The above plan is something am contemplating to do i get a feel of how trading a live account is like
Does your compounding take losses into account? I guess those pip targets are net figures? Are they similar to the results you are seeing in your demo trading? If so your doing great 
1:200 leverage is high though. Most profesional traders think 1:30 leverage is high. Start a small live account first, say $100 and get a feel for trading real money. Live trading turns forex into a completely different animal
I agree with Hunter 100%
I trade with 5/1 leverage…
Thanks for the leverage advise.My above plan so far i demo traded with it for a month and i have been making consistent profit…i guess with the questions you guys have raised i will hold opening a live account and continue demo as i implement how viable my plan is
Well I like ur trading plan. But with $500 real account if I were you I’ll do this.
I use 1:12 leverage & buy 10 shares of Apple. Basically when you open 1:200 leverage account your used margin will come up around $285 based on current market price. I’ll analyse the chart & find a perfect stop loss. But not more than $200. Because the average price move per day is around $15. Having said this Apple has decent balance sheet & at the moment it’s under valued in the market. There are more product to come during this year such as Iphone5 & Apple Tv. Above all wall street predictions is above $800 for this year & some traders target is above $1000. So there is more room for apple to breath. If everything goes according to plan may be will assume by October it hit the price $800.00 now current market price is $570 so we can make $ 2300 in 5 months time. ($80010-{$57010}) based on your plan, 5 month return is $1000. here you get extra $ 1300 profit. You only have to spend at least 2 hours in the market to check the status or even once a week will do upon your confidence. So hassle free profit. You know forex is how volatile & it does aggressive move. You do get these kind of volatile very rarely in equity. Even you can try with 5shares. It will double the amount of your capital in 5 months time & also you can trade forex too if you buy 5 shares. If you buy 10 shares you mustn’t trade other pairs. Because of $500 capital account we shud keep more room to breath for Apple. I’m here to make money. So I’ll first see where I can make more return.
Again I would lik to advice you it is not guaranteed though. But probabilities are very high. The decision is utterly urs. Any how I wish you good luck.
Sorry I didn’t take into consideration of your compound profit. I just realised. So you’ll end up with $3000 by 5 months time. That is awesome. More than my plan target if price hit $800. But if it is hit $1000 my plan brings you more profit. Anyway My apologies…it’s your money. You must do what is right for you. So trade the way you want. My congratulation once again.
Forget about the amount of pips you need to make on a daily basis, instead hone your strategy and make sure you perform consistently. And if you are new to forex trading, you may want to review online resources, enroll in school and do a dry run with a demo before moving on to a live account.
And for what it’s worth, starting with a mini is definitely preferable to a standard account…
Good luck!