Please tell me the hard truth

Beginner Questions
21

Thanks alot. This is the realistic journey i was looking for!

Question what do you mean with prop system. Is that system you got from the prop firm?

Thanks!

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22

A prop firm is a firm that will train you to trade for them. After you meet their requirements they will hire you. The profits are split between you and them. Even though I can go with that prop firm or even another of my choosing–I haven’t done so yet.

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23

1st demo as I am right now. til you can confidently show yourself on mt4 that you can consistently be profitable. My goal after consistent. Is to utilize ftmp prop firm. 650 usd for 100k account to trade with. I saw an experienced trader say…if you open live account. Do it with nothing less than 1k. If you want 5k a month as i do. You need a 100k k account. And make 8k a month…or 8% and ftmo takes 30%. So you will receive 5,600 monthly. This is realistic, if you get experienced and consistent. I JUST GAVE you a nugget bro. Its not easy, and takes time to get to this level. Dont think this will happen immediately.

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24

Thanks for the insight!

I know it wont come easy.

What do u mean with ftmp prop firm and a 650usd buy in to trade with a 100k?

Do you have a source where i can read those things and de requirments.

Thanks alot for the effort

25

I have read about ftmo, they talk about mt4 and mt5. Im now demoing with tradingview. Is this going to be a problem?

Thanks

26

It all depends about your strategie and risk management, because not everyday is about winning, we have losses too. First you need to understand what kind of trader you are and learn about the market. I’ve read a lot of books, and those who made the difference for me was babypips and the book Naked Forex. But, yet it was very hard for me in the first year, so what really made a huge difference for me was finding a good mentor.
So, focus in your learning… start with the information here in babypips, because it is very helpful!! And if you have a opportunity, find a good mentor too!!
Good luck!!

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27

steve369 is right - don’t take great risks until you have numbers to go by.
Trade Your Way to Financial Freedom, a book by Van Tharp, has, I think all the was of figuring your profits.
That would be: how many wins to losses, the size of the wins to the size of the losses, and the number of opportunities (trades) you have in a given amount of time.

For instance, if you have 12 wins to 11 losers (52% wins) and each win average is $110 but each loss average is $109 (a 1.01 to 1 win/loss ratio) then you have $121 for 23 trades ($5.26 per trade) that you make. Well, as you can see, you would need ~190 trades a week to make $1000 per week.

So, ways that make the most per trade are helpful, as being right seems to be hard oftentimes and the opportunities are only what the market and your method will provide.

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28

as others mentioned it is a very subjective question. However, before deciding your initial capital amount, consider the items below:
1- learning, learning learning. statr with demo account and do not switch to live account unless you are able to make and keep profit in 3 months in a row. ( I repeat earn and KEEP the profit) making money is not much difficult, protect your capital is on the other side, damn hard!
2- if you can not resist the temptation for starting with a live account and you think you are missing the opportunities to get wealthy and driving fancy cars and spend the holiday on your yacht! put your risk to the minimum. as I am in the same situation, my capital is $500 at the moment. CONSIDERING 2% RISK RULE, I don’t risk more than $10 on each trade. practising with real money makes it more serious and rewarding (and more painful if you make a mistake!). in my theory if I lose money, I consider it as a learning cost.
3- after mastering the forex trading and when you find yourself ready to challenge George Soros, put your investment capital into it. my plan is to start with $2000 and increase the risk of each trade up to $40. if I was able to increase the account to $2500 and maintain there for a while, I will increase it to $5000. increase and keep it up to $7500 on the next stage, I will increase it to 10K.
3- I have no plan to withdraw money from trading before my capital exceeds 10k. after this point, I might withdraw around 1k out of every 5k profit.
I hope you find it helpful

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29

I like the following reply from @MattyMoney

But take some notes from the example. This assumes a lot, like 6% EVERY MONTH for the 4 years. I’m not saying that’s impossible. Just pointing that out. And the other big one, that’s over 4 years WITHOUT withdrawing money. All your profits stay in your trading account.

If your starting balance is different, or your overall win rate is better or worse, or your withdraw funds, or the amount of money you want to make each month is different, obviously anything in that example can change. As does the “after 4 years, you’re making X”.

Just remember, it’s not an over night thing. It most likely will take YEARS to become profitable to the point where your can trade full time and live off those profits.

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30

Thanks for the amazing answers!

Im 50 steps further than i was before.

Im going to buy some books. Read the baby pips course 2 times. And demo till i drop.

The moment i become profitable for 3-5 months

I will start with €1000 if the emotions with the live account dont get to me and i can get to €2000 i fund the account up to 10.000. If that works out i will slowly fund and grow it to 100k and after that i will withdrawal 70% of the profit every 3 months.

This would be a 3-5 year plan.

Thanks people the picture is alot more clear now!

I saw a few books already any advice?

And a mentor, is this possible without paying alot of money or getting scammed? I am willing to pay ofcourse.

Thanks.

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31

That’s a nice plan for you too start! Good luck, and train that emotional side!! He fu*ked me up a lot of times :face_with_symbols_over_mouth:
My favourite book to start was Naked forex… I have a lot of ebooks in my computer, if u want i can give it to you, just send me a message :slight_smile:
The question about a mentor, it’s difficult to find someone trustfull, I’ve seen some people asking for 5k and 10k, and i could’t afford it! I paid for mine 2k if im not mistaken for 3 months!! But as i was not prepared yet after three months, i paid for more 3months and 3months… only after 9months i felt confident to trade by myself. But the process depends on every person :slight_smile:

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32

I would love to get some e-books! I just put naked forex and trade your way to financial freedom in my cart. But havent bought them yet.

33

Thanks for all the support! I have the feeling babypips is a great community to be apart of!

34

Can we send messages here? i could send it to you a few one’s!
And if were looking for a mentor and didn’t find i can give you the contact of mine and you take your doubts about the subject!

35

I have send you a message i dont know if you can send documents

36

I started trading with 100USD. Trading forex is risky so invest as much as you can afford to loose.

37

Thanks for sharing. I just bought the e-book trade your way to financial freedom. Ive read through the contents this book is chuck full with great information. And is also focused in mindset and not the “perfect statergy” as K. Tharp says the “holy grail” Thanks alot!

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38

I admire your positive mental attitude - but just take it easy and don’t be greedy. :sunglasses:

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40

It depends on you risk appetite.

" Sun Tzu said Know the enemy and know yourself in a hundred battles you will never be in peril. When you are ignorant of the enemy but know yourself, your chances of winning or losing are equal. If ignorant both of your enemy and of yourself, you are certain in every battle to be in peril. "

The Question is who is the enemy in forex trading?

I believe it is the sub-conscious self or more specifically IMO the GREED that reside in your heart. As for yourself, that would just be your conscious self.

There are people who already have a lot of money before they even embark their journey in forex trading. They are people with a lot of money to lose and they won’t even feel a pinch to lose a couple of thousand USD. Their capital are LARGE. A one digit percentage gain are more than sufficient to them in terms of earnings power vs effort and time expended. They are pretty chill and what i call a TUMBLER doll. In short, their risk appetite are Low and their expectation are easily achievable. They are simply just social trader. Trading just because they have nothing else better to do, and enjoying company and agony of aspiring traders, preaching them on the lack of money management, when they have never been to hell and went thru hoops of fire (getting ‘burnt’ over & over & over … again & again.)

On the other extreme spectrum, there are contest trader who demonstrated ROI of more than 100% per week. They are the Kamikaze lot. It is win or die for them. Win meaning they emerge as the overall top trader of the week and obtaining good prize money for their effort over that week. I don’t feel like elaborating more on them. I think you get the point. (The other extreme end)

In between, there is an equilibrium point. Towards which side do you desire more? You have to make a choice. The truth is not hard, but it is hard to choose sometimes.

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41

The funding firms usually hire traders who can make around 10% profit a month.
That is a reliable indicator to see what a good trader means.

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