I am a complete newbie. I just wan to ask if this money management is possible or not.
Let say I open an account with US1000. I use leverage 100:1 = US100,000.
Micro account 1 lot = US10,000, margin 1%. I trade only 3 positions at any given time. Each position is 10% of my current fund.
If I make 300 pips every month:-
1 st month; 1 position = US10,000, 1 pip = US 1.00
Fund = US 1000 +(300xUS1) = US1300
2 nd month; 1 position = US13,000, 1 pip = US 1.30
Fund = US 1000 +(300xUS1.3) = US1690
3rd month; 1 position = US16,900, 1 pip = US 1.69
Fund = US 1000 +(300xUS1.69) = US 2856
So after 37 months, US 1000 x 1.3*(27) = US 1,193,000
Since I traded 3 positions at any given time only,
Therefore for
1st month; 3 x 1%margin = US300
Fund � 3 position � margin = US1000 � (3x 100) � US300 = US400 = 400 pips
2nd month; 3 x 1%margin = US390
Fund � 3 position � margin = US1000 � (3x 130) � US390 = US520 = 400 pips.
So during any particular month, I can survive it if I didn�t accumulate - 400 pips negative on those 3 positions right?
Well, not quite because you assume 1.3X per month so the second month would be 390 pips and then the next would be 507 and so on, but if you increased the lots maybe. remember in that case you are trying to make 30%every month. Gook luck to ya tho, it may be tough but having goals that seem unrealistic will push you rather than having no goals at all.
take it easy eh!
if you look at the “top gun” software they have a caculator that will do the math for you. I think you can find it under leveragefx.com but I’m not sure it has been awhile since I have been on that site. As far as 1,000,000 in 2 years, anything is possible if you have the nuts to carry it out.
thanks for the reply!
BTW i am still looking for a method or indicator to let me earn +300 pips a month. Looks like a lot of methods outthere they claimed to earn hundreds of pips a month.
For newbie the method to get 300 pips or less or more is not that difficult. Remember KISS principle on babypips.com. I thing one of the best trading system for this will be Cowabunga & your strict adherence to trading discipline.
I can earn 15-20 pips per trading day. Just maintain this principal every day. By this way you can enter the million dollar club in the set time frame you wish. As your equity increases, increase you trading lot or upgrade you account to standard.
i wan to ask 1 more thing, let say i got 30,000 account and i wan to play 100:1 leverage. i use 10,000 from my account so after leverage it will be 1000,000 then i need to trade over the phone? cannot use MT4 platform anymore? cos i heard ppl trading more than 1 mln need to do it over the phone or divide it into 2 parts? i am not clear in this.
