Hi guys
Is it possible to make 3% daily? If it is, how is that achieved?
Is it based on some EA or indicator? It it done manually?
I just cant figure out how one can make 3% everyday.
3% per dayā¦ ?
Means 60% a month(considering 20 trading days)ā¦?
Means 720% a year ā¦ ?
Increasing capital 7 times in an yearā¦ ?
Pretty nice but impossible dreamā¦!!!
Its possible, like anythingā¦
3% return on equity employed over 20 days compounded would be around an 81% return a month. Thatās doing one trade a day with a risk level of 1/10th your account and earning 30 pips each trade, no losses and no blowing your account.
Possible, but risky and you would need to get it right the majority of the time. Every trade you lose on would require two more to redeem your loss, and continue to increase at the rate above (assuming you losses equal your gains).
At the same time, you could gamble half your account and double your money in one trade or you could lose more than you even realisedā¦
Lots of strategies out there mate, but I would aim to grow your account by more than what you would earn sticking your cash in a bank account and the value of your time spent looking at charts!
Bitterseatrader
So in a short time youād be rich. I imagine that even if 3% a day were possible the psychology would mess with your head at some point - pretty quickly the risk necessary to achieve that return would be pretty heavy. Imho many newer traders tend to target overly-ambitious percentage returns to compensate for their small accounts. Starting with a small account it is very hard to make real money for quite a while, until compounding increases the account size. Personally, I donāt think that a 3% daily return is sustainable over the long term.
3% per day is a lot, having that kind of goal means you will place a high amount of pressure on yourself to find trades to achieve that. That will mean that youāll force trades, Iāve tried this before, it involved a high amount of risk and it only lasted about 3 weeks before I lost all the profits I made, and it went downhill from there.
Calculations are accurate. Agree with you. Achieving 3% a day (81% mothly compounded as you said) in a month require only [B]30pips a day[/B]. Sounds nice.
I can become so rich, If I can earn at least 5 pips in a day with a risk level of 1/10th of my account as it will increase my account by 10% in a month(Considering 20 trading days in a month).
A 10% reward, after compounding can make you a multimillionaire in 10 years with an initial balance of $1000.00. Yes, I say with just $1 K.
How
Initial amount $ 1000.00
After 1 month $ 1000.00 + $ 100.00 = $ 1100.00
After 2 months $ 1100.00 + $ 110.00 = $ 1210.00
After 3 months $ 1210.00 + $ 121.00 = $ 1331.00
AND
SO
After 120 months $ 84280971.65 + $ 8428097.16 = $ 92709068.82
[B]yes $ 92.71 million[/B]
See, How sweet it isā¦
If it was that much easy to gain 5pips consistently everyday, then almost all members would have been left this forum as they will be busy in searching to find out extra areas to spend their huge money.
Calculations are easy. But are not practical. Your emotions will be your enemy.
I am not discouraging. All the bestā¦ and try to be practicalā¦
Also, youāre not factoring in any losses.
Btw, what broker will be able to provide that liquidity for you to be able to get to that stage?
Not suggesting its achievableā¦(maybe my post is misleading) But I personally donāt believe I good gear my account to those levels and get 30 straight correct trades a month.
āanything is possibleā its just not very likelyā¦
Take it easy. Earlier I was in a race to achieve so many millions in no time. Worked very hard, Always in front of PCā¦ No Sleepā¦No restā¦No foodā¦ No other activitiesā¦
After a long race, I found myself nowhereā¦Even, my base was not thereā¦
But after so many months of experience, now I am somewhereā¦ I am somewhere only because of suiting risk management.
Those who understand the risk before loosing heavy bucks will be lucky. But those who understood the risk after loosing all their bucks will be more creative.
I think that the losses are factored in. When people put up questions like this, they are implying a ānetā 3% p/day gain. So they assume that whatever losses are realized p/day are canceled out by the daily wins so that the net profit is 3%. They do not assume 100% success on their trades.
As to liquidity, this isnāt a problem either. One can break up the big account and split it between brokers and use a trade copier to copy out the trades so that when factored together they all are equal to the one larger trade that you were looking for. Doing this would create variable results because fills on both the entry and exit wouldnāt be the same as whatever the fill would be on a single large order, but it would actually probably be advantageous to split up orders to be honest.
In truth, as others have said here before, the problem is psychological in nature which translates into a lack of discipline. Are you undisciplined and apt to do stupid things like cutting risk in half after so many losses in a row because you want to āsave your accountā? If so, then youāll probably find that your wins, when you see them, are only at half strength and when you power back up to full strength by doubling risk back to your original level, thatās probably the time youāll hit a losing streak again. Which means youād have a period of half-strength winners followed by a string of full-strength losers. Thatās what happens when discipline breaks down.
Hereās where it getās more complicated. You might have the discipline to take your losses like a man and see your $50,000 account (which you grew from $10,000 over the course of 3 months with high risk trading) diminish by 75% to $12,500 and STILL put on full-strength trades with the result being that 4 months later your balance is sitting pretty at $110,000ā¦new equity highs! But when your account balance is $500,000 would you have the SAME discipline with every trade as you see your account beat down to $125,000??? or would you fall into the trap previously out lined? If you fall into the trap when your account is $50,000 or when itās $500,000ā¦the results will always be the same.
If you have the discipline to put on a full-strength trade and follow your plan even as you lose $375,000ā¦then you might just be able to trade high risk until you get to $100M or so. After thatā¦liquidity is going to become a problem and your movements in the market might be making enough waves that others behave differently ājust enoughā with the result being that your system doesnāt work as well anymore.
Actually in a perfect market place where all brokers use the top tier 10 liquidity providers it would make little to no difference splitting up a big account into several different brokers. Liquidity is liquidity, no matter what broker you go through. And if we are talking big numbers, there will be no MT4 copy trader involved, most high spec accounts use Java or Currenex as the platform of choice.
Youāre right that liquidity would work out pretty much the same whether the trades were split between brokersā¦the only problem is that you might not be extended the same terms of credit at a single broker vs. multiple brokers.
Iāve seen many brokers that have 400:1 leverage up to $50,000 then 200:1 up to $100,000 then 100:1 up to $1M and then 50:1 over $1Mā¦or some similar schedule.
So if your system is a high-leverage system and you āneedā to have access to 100:1 leverage in order to trade the system as designed, then youād have to split the account across multiple brokers in order to keep the respective balances low enough to still qualify for the higher leverage.
I once asked the live chat people over at Pepperstone if they cut leverage on Razor accounts once the balance grows beyond a certain level and they replied that they did notā¦so maybe there are brokers out there that donāt chop leverage down as account size grows.
:22:
Ooooo, no, you didnt just ask this did you? Of course im taking the bait on this one, lolā¦
Is 3% a day possible? I dont know, I havent talked to anyone that has. But on paper, its possibleā¦ So like already said, its all in your brain stabilityā¦ Can YOU make 3% a day?
Now, I am a big advocate for this type of money management, as many here knowā¦ If Im trading Oanda, I use 90% of my units available, and end the day after 15 pips, for 5% increase on opening day balance.
No, Im not trading live yet, once again got sidetracked with billsā¦ But its giving my time to fix some of my trading issues, which I do have a fewā¦ Not perfectā¦
Right now, Im in a contest, and in 3rd place out of 50 traders, hitting 85%ā¦ hopefully I win, and there is my deposit, but also, a huge accomplishmentā¦ So thats what im working on right nowā¦
The key is, dont lose more, then what you won yesturday. So, you lose 1 day of profits, but its what you take from the days lessons, and dont do them againā¦ New day tomorrow, go after your 3%ā¦
And, if you can be right more often then being wrong, its a great planā¦
I have a pretty good strike rate at 90% over the long term, so I expect to be right most of the time, which inturn, gives me the Best chances to succeed with a plan like thisā¦
A problem is, Stepping away after you get your 3%ā¦ " Man, that was easy", " Lets try for 3 more %"ā¦ DONT
Just walk away, and dont trade anymore that dayā¦ Its easier said then done, I knowā¦ But you must practice this plan, and find a routine in the systemā¦ You have to do this everyday, for who knows how longā¦ So get a Routine togetherā¦ A detailed plan, that you MUST follow, step by step, exactly the same way EVERYDAYā¦ This inturn will build consistancy within your trading, AND in lifeā¦
Man, 25% a day is doableā¦ The pips are there, the liquid is there, but the MIND must be thereā¦
Practice ROUTINE, and make every move a calculated stepā¦
You know, I hear alot of traders that say, " I can double my demo account in a week", its differantā¦ WHy practice with unrealistic approach? Because evidently, realistic isnt making many traders money, thats whyā¦
WE dont move the price, WE must ride the price, when we see it favorable to jump on the trainā¦
Give it a try, but dont treat as a test, treat as a new plan.
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Very good point, I didnāt even consider that leverage/margin requirements change as the trade volume increases.
Bheks. it is possible.
I was making solid 3-10% profit. A month ago I had 7000 in my account and just before I got margin called 2 weeks ago I was at 19000. this was from an original deposit of 2500, with almost all deposits withdrawn (ie 6500 of that 7000 is profit). (why did I get margin called then? I thought Iād be notified before they closed off my positions so when GBP, EUR moved 84 in 90 minutes while I was asleep, with phone and credit cards handy). If Iād put the equity shoreup deposit in I would have made 25% by lunchtime the next dayā¦ (or if the NZD had moved at the same time, rather than 4 hrs later)
This is how I was doing it.
First of all, Iām more property than forex, and donāt bother with shares. I know mortgages and ag and video business.
My account is (was) with CMFX, using their NoDealingDesk option, and TradingStation software.
positions bought and sold were based on my equity size. 2.5k = 1-5 minilots. 6k 3-10minilots. 14k 10-30k minilots.
I would watch Tick, 1m and H4 charts in KD, GD, ED (kiwidollar, pounddollar, eurodollar pairs). 1m candles were my church. Tick would add a little icing on the up or down if I was manually closing. H4 (and 15min) helped make sure I didnāt get caught betting against any āmacro-trendsā.
My only real indicators used were the candlecharts and the volume indicators (shows depth of market, so if people are likely to be holding/waiting or acting, and whether it was brisking trading over time or a large account holder bullying the market)
So Iād look at the chart and decide whether it looks favourable going up, or down. look for recent supports and resistances. on the candles!! (classics, had we had shoulder behaviour? is there elliot wave appearing? Do others in the market appear to be using a fibacconi - or pipping out those who do).
And then Iād set a Limit Order (and write it down in my log! with expectations). A check of the news for upsets if you have time is worthwhile. If Iām really confident Iād just market order it.
And then Iād set a alternative (āstraddleā) position, using limits orders. So when the market moved against me Iād make a profit. enough profit to cover my loss on the initial position, and Iād set a limit order past my profit take point.
Confused. at this point most are. especially the currency traders, because Iāve made little equity and lost on the hedge spread. But Iām more into property and mortgages. My āprofitā at this stage is just buying back the equity in the move, the further the market goes away against that first position the more important it is to get that hedging profit to cover the floating āmortgageā.
Because currency goes up and down. And as the trade eventually swings back my way, my āmortgageā gets paid off, my losses reduce (and my āhedgesā become my new mortgage and I recover equity on my original position).
Important points are: Keep the gains conservative - and a few minor positions for long swings. You still have to consider risk vs profit (ALWAYS) but weāre taking a longer view on the position to reduce the risk factor. but youāll never clear 3% cutting your business off short. It means being ready for swing and overnight/weekend positions so have equity deposits close at hand. Bet to favour carry trade, itās nicer holding a position that gains a pip a night than one that costs you. Margin management is critical!!! currency, trades, fundamentals, or playing cards will all go for and against you the aim is to stay in long enough to see the position win. I manually manage my stops (as a minnow the big fish like to āstop me outā for their lunch money) and this requires a bit of nerve and serious consideration - often Iāve closed off a āmortgageā with a hundy left on the clock only to see the overnight hit the profit limit and drop back. Now if Iām worried Iāll give it a 1pip margin and wait to see whether the market holds.
Unfortunately the new margin rules at CMFX might stop this trading system from being effective. So Iām looking for a new broker that allows the upwards pips to cancel out the downwards pips, without adding margin weighting for a hedge position.
currently 2 weeks after being margin called, to 6440 equity, Iām back at 9400 (thatās about 1k increase in profit, and having to ābuy inā a new set of positions, and a 2k shot in the equity to get out of the penny leagues). itās slow going because Iām watching to see if a safer system can be worked on the equity number.
Sum up: staddle positions. safe but profitable Limit Order (profit take). carry trade. margin management.
I normally have 15-30 trades open at any one time and system seems to work on moderately predictable currency pairs (KD tends to sit between 0.5-0.9, Pound tends upward, Euro tends downward) doesnāt really seem to work well on JPYUSD or AUDNZD (I donāt have the āfeelā for the Yens ānormalā movements, and the cross (AUDNZD) is too erratic in shorttimes to allow ones āfloating mortgageā to clear to comfortable levels - this system relies on modestly quick turn around (20% of trades within a few hours, 60% of trades close in 48hours. 10% of trades may take over a month to go into profit but theyāre some of the sweetest. anything longer I get boredā¦)
I canāt recommended the system. But I can say Iāve been doing it for months.
And the losses? always the losses! 2500 on a bad day early on when I had to pull 5000 to pay for the farm rent, and closed off a bunch of āmortgagesā to protect my margin. 400 lost on a day because I closed the wrong transaction (duh!!), 2 days where I lost about 50 because trade was slow. about 2days where I got <3%.
I havenāt got to the profit take point but the system I was going to use was never more than 50% of the previous months equity gain, and never take before the 20th of the following month. I was still in capital build phase of the system so the profit take MAY affect the way system margin sits.
Trade fast, trade profitably, protect your margin.
Luck be with you.
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Oh 1 rule have also discovered. [B]Never[/B] try to cover a couple of smaller positions with a larger one. Iteratively smaller positions, even several of, but never bigger. Bigger is opening a new āmortgageā, which if youāre trying to cover an existing position, is pretty much exactly the opposite effect to what you want. ie Instead of ācovering the positionā youāve not covered the position AND youāve opened new exposure AND reduced your margin safety. Instead of solving one problem youāve created 3 !
āproblem is, Stepping away after you get your 3%ā¦ " Man, that was easyā, " Lets try for 3 more %"ā¦ DONT "
If youāre in swing trade then itās fine - every trade is a new trade, and stands on itās own.
But I certain agree if you made 3% one day, donāt ātry and go for 4ā¦or 6ā. thatās russian roulette thinking, like thinking the last trade sucked so the next one must be better.
You bank your 3% in equity. And keep to your systems rules. just like MoneyNVRSleeps saysā¦
@Bijoymi:
"3% per dayā¦ ?
Means 60% a month(considering 20 trading days)ā¦?
Means 720% a year ā¦ ?
Increasing capital 7 times in an yearā¦ ? "
3% per day, been doing itā¦ hereās a hint: IT COMPOUNDS!
3% per diem (without profit draw) = 1.03 ^ 20 = 80% in a month
and 120,300% in a year. but itās still only 3% per diem. (inc losses & no profit taking).
Admittedly Iām only up 1.6% (150/9000) so far since open of trading today (5 hrs ago) and just a minnow (wee account) but Iāve been out most of the day. But Iāve been playing it cool to develop system to a lower risk, and since I havenāt been watching the magic wavy money line much today itās harder to call what sentiment in the market is likely to be.
19hr after market open this week (cf previous post 150/9000). $226 (+6 carry) with balance 9,544; floating same 1,000 loss. 2.3% with 5 hrs to go.
Havenāt bothered opening much in the way of new positions at moment. Only a Limit Order on GD, as thereās some nice ranging volatility (ie high probability that the currency will track well within itās band, reducing risk.) LO: 1.59131 as@ 20/Nov/12 05:48. take limit at 1.58954. no stop set so not to feed the big fish. check back 3hrs time.
Itās not possible to make any fixed number, since itās a decentralized market, never & ever.