Lexy is far more educated and diplomatic than myself. I’m a redneck bipolar Gemini so I’ll cut to the chase. You have the talk of a newbie and this plan s|u|x|s. Don’t do it. Your broker is going to put a new deposit on that boat he has being eyeing off.
Lets break it down a bit so hopefully you can learn from some of my mistakes. If using your plan of 10/40 TP/SL, your trade as a random event has an 80% chance of winning. Which leaves you at break-even. But the market is a *itch and you have to pay a little thing called spread. So with 1 pip spread as a random event your system will delivery a probability of 78%. So over 100 trades you’ll lose 100 pips. You need to somehow get an addition 2 wins just to break even. You need to filter you entries so they are no longer a random event. This is not an easy task. Chances are for every false signal you filter out, you probably filter out 1 good one as well. Leaving you no better off. That’s life.
So somehow you’ve found the holy grail and have managed to filter you entries to achieve a 85% win rate. And somehow, just somehow, you manage to get 5 trades off every day. Over a 4 week period you’ll make 150 pips. Without leverage this represents a gain of 1.5%. You will need an minimum of account size of $33 400 to make your $500 target.
But what’s the real cost to you. Well, by my own screen time experience, you’ll probably need to spend 5 hours a day to achieve this. That’s 100hr a month generating you a wage of just $5 bucks an hour. Now ask yourself this, whats simpler and less risky, trading or go get yourself a second job.
GET YOURSELF A SECOND JOB. THIS JUST ISN’T WORTH YOUR TIME.
Now, a little disclaimer. The formulas I have used in these calculations are my own from my historical testing. They are rule of thumb formula’s but I have found hold true. I have also presumed a USD account trading the EURUSD pair. There are many other factors that effect the final outcome. Experience, leverage used, commission costs, swap to name a few. Maybe in the hands of a skilled trader such as Lexy, she could generate 2% a month like this. I know I couldn’t.
I would suggest that the terminology you have used, your experience is very limited. If you have access to the funding required, give it to fund manager. They’ll generate a a far better return for you that speculating will. But, if you think you can commit, then go for it. It will take many years to master. Never deviate from your plan. And maybe in 5 years with the use of leverage, you’ll be generating 10%+ a month and give up your day job altogether. Dare to dream. It’s one thing to make pips, it’s another to convert them into a profit. Plenty will testify to having a positive pip return but still lose because of costs.
Best of luck bro whichever way you go
Bob