This is my first post, though I have been reading the forums here for the last few weeks. I am currently going through the free school on here, and ICT’s Youtube videos in an attempt to get my base knowledge down. I’m hoping to one day do this full-time, but I currently love my job and so I am not in a rush to replace it in the next 5 years. My goal is to return 6% a month. I am able to allocate about $4k-$6k/month to my equity if I want. However, I’m thinking that I will start, after Demoing for a while, with an account between $5k-$10k as I don’t want to risk too much money at first before I’m consistently profitable. If, and when, that happens, I can see FOREX as a major tool to financial freedom, and possibly great wealth. With that said, I have some questions:
[B]Currency:[/B] I live in East Asia, and I will be trading mostly during the Tokyo times I guess. I maybe also trade at night, during the NY time. Is any certain currency pair have more potential profit, is easier/difficult to trader than the others. When I was looking at the charts, it looked like the Yen had some of the least movement among the pairs.
2)[B]Returns[/B] My goal is between 6%-10% a month. Is this possible? I see so many different opinions on this it seems. I know 6% is a lot more likely, but how difficult is even 6%? In ICT videos 6% is described as not difficult. Are many of you finding these returns? Also, if someone is consistently returning 6% and doubling or more their account, then how do these people not become incredibly wealthy? Upon doing the math you can see the power of compounding interest. Once a person has equity in the millions, what stops them from making 5 million a month, 10, 20 million a month? I am curious about this. If you’re trading the same way, shouldn’t you get the same returns despite the value per pip?
Increasing your earning potential through compounding returns is certainly possible if you are good enough, although if you are trading full time profits would have to be withdrawn for living costs which wouldn’t yeild you quite the same compounding effect. Even so if you were good enough to return 6% a month would still take you more than a year to double your initial deposit. A 6% monthly return to make £5M you required £30M to invest, I doubt that £30M can be compounded very easily from £10k. At least not before you expire, then you have to considder the sort of brokers who could handle such cashflow, taxation, etc.
With untouched compounding interest 6% does double your account annually. A 10k account would reach the 30m mark you mentioned in 138 months. I know that it is not necessarily that simple. But, what stops top traders from turning millions into billions? When an account reaches into the millions the compounding interest is so powerful that they could become insanely wealthy in a short amount of time.
Correct, which is 11.5 years without loosing or withdrawing anything.
In my experince I can make £10 on a good day (10 pips roughly) with an investment of £6000 trading the FTSE100, but thats certainly not consitent (although good traders do better than I).
So thats about 0.16% a day, 5 days a week is over 0.8% and around 4% a month. So mathematically it’s possible, but in reality it’s a lot harder than it sounds. I guess it does add up if prices change around 2% a day and you grab a good percentage of that volitility, but to be honest this is the wrong way to the be thinking about things. Sure the best can make a good living, but you’ve got to get there first.
Thanks for the replies. It was more of a question of curiosity, than my personal goal. The 30m is just an example. In reality, my goal is to reach six figures a month within 6 years. So, my question is more meant to see if something happens once you start reaching these upper limits of trading that seems to stall or reverse peoples income potential.
Patience and capital seem to be important. I can fund my better than 10,000, which will expedite the compounding effect, learning to properly trade first is my only mission. Those numbers are only goals. I do not look at this as a get rich quick scheme. I realize it will take patience, controlling greed, and a lot of practice and learning to be able to reach 5%/6% returns a month. Even if that is not possible, I would be happy with using FOREX as a way to help supplement savings for retirement, which shouldn’t be difficult since I want to live somewhere such as the Phillipines or Thailand. Anyways, cheers. Time will tell.
It’s really only possible to know what YOU can earn. Methods don’t make money by themselves, it requires the discretion of the trader at the helm in order to realize their potential. You really have to find a method you think suits you, and then trade it for 6-12 months and literally see what gains come out of it. That’s the only value I’d care to hear about
