Is it possible to grow a small account into a big one?

Beginner Questions
21

This is always a difficult question, isn’t it?

The variability is hugely important. The smoother your equity curve is, the smaller the number of months over which you can take an average to produce a meaningful answer to this question.

If you’re averaging +6% per month with variability between +5% and +7%, you could take 6% as a meaningful average on the basis of a [I][U]much[/U][/I] smaller number of months than if you’re averaging 6% per month with variability between +26% and -14% per month, because the latter example is hugely swingy and unreliable.

I’m convinced that loads of people, trying to work such things out, go wrong because they base their average expectations on sample-sizes that are too small.

The more experience I get, the more I feel sure that “smoothness of equity curve” is a widely underrated and really important parameter. (And of course higher win-rates, even with much smaller profits, do lend themselves to smooth equity curves, all of which goes to show that long-term successful trading’s about risk-management and not about profit-maximisation.)

22

Compound profit I think will safe if already reached break even point, before start compound profit withdraw money until get break even point will giving more comfortable to start compund profit, but if ready with the risk compound profit will giving strongest free margin with use same lot size

23

My entire forex career for the past 6 years is solely based on compounding the account.

Thats how you make the money and make it work for you each and every trade.

Compounding means " Using available margin to full effect" EVERY TRADE.

Each trade won, means the next trade will be of greater value then the last.

But you NEVER work to recoup of a lose. The lot size depends on the account, and not strike rate.

We can look at my account this week for instance.

about every 2 trades, the lots at " Risk" is more then 2 back.

The compounding works itself out, Its up to YOU to adjust trade size accordingly, whether You choose daily, weekly or monthly.

Its known, Im a freakin maniac. I want the BILLIONS, and not in 20 years, In 5 Years maybe.

Is that credulous to say? Absolutely not. Its a numbers game. If your right, its all good, if your wrong, Its a back step in progress, but You have to keep on rolling.

I make it difficult on myself, not because Im a nutcase, but because Its POSSIBLE to achieve, because the Numbers say so.

The traick is to be right, and be right as often as possible, never reducing Risk, But managing mistakes that they dont beat your account.

Do you have to lose? No, no you dont. Its unacceptable to go into a trade with the inclination You may lose it.

You work hard to NOT LOSE, You Play to win the game, You dont average Risk by Trade, You manage risk by Studying, hammering away on the charts, and getting better at your career every single minute you have available to do it.

No one is perfect, that is true, but Dont fall into the cliche that you MUST lose.

I made 10 trades this week, all winners, 62% gain. You want to talk compounding? THATS how you compound.

My mentor said, " The best traders had the most extreme adversity", Because at the end of the day, Quitting makes you a loser, Not effort.

24

Obviously, it’s possible even more! But trading skill is very important to be a consistent player in Forex business! But I really like your slow process! Basically, traders need to select their monthly trading target according to their previous trading experience; unrealistic target always brings big losses in trading.

In addition, definitely there have so many successful Forex traders who also started from small trading balance, so I am positive!

25

And Money You know how many times you lost everything playing that game. How is your pile of golden chips doing?
Compounding 100 eur for 52 weeks at 62% a week
100euro *(1.62^52) = 7848393261358 euro in a year (Just for fun)

26

I’d even be willing to round it down to $7,848,393,261,350, myself, just for the sake of withdrawing the odd $8 to go out to McDonalds …

27

I know what you mean.
I had once a year with + 90% trading options Average 7.5% a month The next year I lost 50% average -4.2% average The average over 2 years was not a +1.65 % but -0.41 % a month average over 2 years

But if you want a decent living as you call it and build up an account like you did you need an 5% to 10% average (smooth ) profit I think. We can not all trade like Money …Unfortunately!

28

Hey TC, whats good Buddy?

Hey, I do know how many times, but the good thing is, I lost around$300 in 6 years, and Today, Im 1000% better then 3 months ago.

And you know, my problem wasnt trading, my problem was not taking a loss and moving my stops in hope of a turn in my favor. The difference today, is I KNOW where it could and should turn, I know when to get in, I know where my stops should be, I know when I should be trading and not be trading. So, with a strike rate of 95% before, my strike rate is around 99% now, and that 1 or 2 losses are easy to overcome, and usually in short fashion. But that still wont stop me from going in the trade knowing I will win it. I still wont trade to lose, and I still focus on being perfect.

Man, just 3 weeks ago I thought I knew it better when Jake and I were sissy fighting on the forum, MAN, have times changed since then, lol… ANd Jake is a good dude, made look at things even more differently.

I was pretty dang good before I knew what really was happening, Now, I Rockin and rollin, Im talking, really got my sht together, and my enthusiasm is sky high, with all the crap still going on around me with my homestead. Im actually starting to paint up my current house, so Its ready to move out, and get my life on track to where I envisioned it 6 years ago.

Alot of twist and turns, maybe some on my shoulders from self infliction, ( Just closed a trade for 4% gain, ) its almost like taking candy from a baby…

My average per trade is 9 pips, and not 2 anymore. Im getting even better in that department. But you have to keep in mind TC, Im doing what everyone trys, but never succeeds…

This week , I couldnt afford even sugar for my morning coffee, and yet, Im so estatic. Motorcycle week in my city, 2 blocks from me, lasts 7 days, ARRRRRRRRRRRRRR, I hate it, When It ended last year, I got anziety for this year, 1 day after it was over. Im still not shock, I have to look over that crap, and just endure the sht Im about to go thru… Like a train in my yard. But you know what TC, its almost over brother, I feel it, All the work and down times, taking care of my mom for 6 months, the My mom dyin infront of me, my uncle 2 months before that, Ive been thru it brother. I have alot of issues surrounding me, but adversity and will to fight thru it, got me to today. There are a few others that I wont type here, but you get the idea.

PS: Thats alot of freakin money, lol…

29

Hey Money,

Problems Problems You are not the only one. I know about your mother and I had almost an identical situation with my mother. You are not alone in that.

I hoped you made it half way to your first million already but it looks you still have a problem loosing. I don’t say you have to loose and of course nobody enters a trade with the intention of loosing it. But you have to protect your trading capital to make the next trade after a loss. With a strike rate of 99% the loosing trade is always on its way to get you. That is not a problem if you loose 10% of you trading capital but it is if you are loosing 99% of it. You know the power of compounding with only 10% of your capital and 62% a week it and loosing 1 in 100 it is still alot of freakin money…

30

TC, I fixed my problems,

31

Hey…getting back to the point…
If you haven’t checked out my thread, 301 Moved Permanently, that is precisely what I’m in the middle of doing.
Bottom line is this is my journal to that goal. Believe me, it’s embarrassing.
But, I would like some input from you guys on this point.
Is there a difference between trading for capital building to trading your business?
Surely the risk difference is different. Because I would envision trading your business account would warrent much less risk, because of the size of the account, than from something much smaller, towards much bigger. I would appreciate some feedback from any veterans on this issue.
And I guess it comes down to the strategy. Surely one to build capital would be different than one for keeping an account slowly growing, (preserved anyway), for your business.

Or am I way off? On this thinking.

Thanks.
Mike

32

A realistic approach to capital growth is to a apply a return of twice times your risk per trade for a WEEKS profit.

If you are risking 1% per trade then you can expect a 2% weekly growth.

It is highly likely with the correct method that this will be a multiple higher than 2 but a maximum of 5-10 as a sporadic occurrence.

Anyone claiming to double there account weekly over longer than 2-4 weeks is overtrading or a scam artist.

33

How can you possibly link these two parameters in such an “equation”, without knowing whether someone’s trading 5 times a week or 200 times a week?! :33:

34

Nice to here Money. I was worried about the sugar in your coffee :slight_smile:

I hope the day will come I start making some money.

35

I know somebody who made that claim and she had one of the longest threads on BP

36

Well, its actually Stevia, sugar is poison. lol…

Keep chippin away TC, we all know the wild ride Forex is at times, well, most of the time.

37

72% this past week, 14 trades, far from overtrading, and definitely not asking for anyones money, so neither a con artist,

14 wins, Zero loses

Preparation creates opportunity,

38

Share me one of my friend trading record, anyone could analysis this record,
and get some valueable information.
small to big account is posibble, but very difficult.
My friend trades FX for 6-7 years, now fulltime to run it.
Start stage is very difficult, consistent profit is after many years.

MillionTradingRecord.zip (46.2 KB)

39

Yes it is possible but you need a lot of time and patience to do so. It will depend on your starting capital and your target capital plus your skills to trade to decide how much time it will take to reach your goal.

40

balance.jpg549×700 31.7 KB

Your friend started very good with almost no losses in the beginning Looks like he changed his trading style or method Balance is without withdrawals

He is scaling in on positions trading more then the 5 lot in the table

Will take a look at his most profitable pair