I made an starting deposit of 10 USD on a nano account. Traded it until I lost it hehehehe, then did it again about 10 times. After I was able to breakeven for various months I added enough money to have about 100 usd and traded it for various months. Now I’m adding about 100 monthly, because that is what I can afford to lose.
Using the compound interest formula:
Final Equity = Initial Equity * (1 + period win in percent) ^ number of periods
I get this, with only 200 usd and my average monthly profit:
200USD * (1+10 % monthly)^(12 months per year * 10 years)= 18,541,813.76 USD
I presented a similar projection to a long time friend of mine, pointing out that, when trading is treated like an investment, returns are almost unbelievable. If you are patient & diligent then you’ll see some beautifully wild numbers coming your way :53: Your money grows exponentially
that is only in theory. The problem is that the more money you have, the more difficult to place your trade without moving the market. Bigger orders also have more slippage. So there is a limit of how much money you can trade with a given strategy. After that you must diversify on multiple instruments.
Wow, the math sounds amazing! And i know the math doesn’t lie haha. Just need those 20 pips a month!
Also, you pose a question i’ve been wondering for a while, but havent had the chance to research. I know the forex market does about 5 trillion USD a day, most of us deal in spot markets which does about 1.5 trillion a day, but then it is split between the major and minor currencies. And then, there is some leverage to make your investments work on a larger scale.
My question basically is, at what capital do you think (assuming 1:50 leverage) is enough to cause a move in the market just by yourself?
Do you think maybe it might get easier in years to come (to place big orders without moving the markets), the limit might go higher as the forex market rapidly grows, given that just a few years ago $3 trillion a day was traded and now it’s at about $5 trillion a day?
as for as i know, forex volume is growing
years ago there was only a tiny population, now it’s at trillions!
if there’s a decrease it’s only temporary…it’s trending up of course there are dips along a trend!
Live trading would be a different world, but you would get used to it soon enough.
Just start small and trade very very small. Target 6 to 12 profitable months on live. Good luck!
After enough demo practice when you are able to manage a specific amount your loss are less than your profit . This is a right time for starting live trading. But live trading should be done carefully .
Exactly , don’t till too long in demo practice , once has found the suitable system and can get stable profit at least one month then we can start trading using live account i think
Demo account is good but going into live trade will be different because since your money is involve you will began to see trading differently . Opening a micro account at profiforex with $50 help me to gain real trading experience even when my trading was more losses than winning ones.
I recommended to using ECN account in Liteforex broker ECN account
Its best account performance among all ecn broker. This broker also very fair and famous since many years.
I think it’s time to trade real forex. But choose only one kind of trading (real or demo). I think it’s not good to mix them, you need to focus at real acc.
Yeah my broker let me demo for two years before I started live trading. XTB there called , based in London as I live in the U.K. which is great for me. You can use MT4 or there xStation platform which I think is great.
Hi @medisoft for you post about compound interest formula , I understand the maths, but I haven’t seen “^” be used in an equation before I understand * multiplication and / division but not sure what ^ is being used in this context.
Happy pip hunting
EDIT: hi sorry it clicked it means power of sorry aha
Yes, you should. With real money is different. On my experience, one week trading in real is like 4 weeks trading in demo. When you lost, you´ll feel angry and sad and you´ll accept that the only chance to be successful is to improve your trading plan and skills. you´ll do it faster with a real account than with a demo account.
