I am a forex newbie and was affected by all cynicism that was expressed about MikeAnthonyB’s claim to make $1000 into a $1,000,000 in 8 months. I wanted to believe him but way too many people expressed doubt. Someone on that forum claimed that all MikeAnthonyB had to do was get about 4% increase daily to make his goal. So I decided to go on a fact finding mision and sat in the car doing all these calculations on a family trip out to New Jersey.
Before you go on to read the results, know that the practical lesson from this whole mission is that if you can manage to find a system that will give you just 4% daily NET PROFIT, you could be rich(millionaire rich) in less than one year for sure.
So here are the results.
Day 1: $1000 + 4% = 1040
Day 10: $1420 + 4% = 1476
Day 20: $2096 + 4% = 2179
Day 50: $6772 + 4% = 7042
Day 100: $200,264 + 4% = 208,274
Day 150: $310,370
Day 175: $752,476
Day 184: $1,023,367
Thats 184 business days which means 8 and a half months.
So is it possible? Sure it is. What do you need? On a $1000 trade, 1 pip = $10, so all you need is 4 pips net profit to hit $1040 and be patient.
I am interested in finding out if someone thinks if that is impossible? Or is that too difficult?
My question for you guys!
I dont want to calculate anymore but does that mean that if someone is using that formula, he only has to do about 5 pips daily in order to get that 4%
It’s plausible, though imprudent. If you are aiming for 4 pips, your expectancy will suffer due to spread/commissions. Depending on the pair, you are looking at being -25-50% in the hole just when you enter.
You know I do have seen things happen like that some times but why is that, I dont understand. Can someone explain. Why sometimes the spread is more than other times?
Everything is possible. But you need to understand a couple of things:
Market behaves different every day, every week, every month. So you cant take money from the market every day. That´s the reason that is not a good idea to have daily goals. Sure, opportunities of trading are every day, but not necessarily for your system. Is better to go for reasonable weekly goals.
The ides itself of making money everyday will make you overtrade if you start losing one day, because you have forced yourself to make money everyday. And this could lead to ruin. Be careful with your goals, my advice: weekly and monthly goals, and start with a small goals and increase them as you improve your trading. If you want to be rich, then think in long-term.
I am a forex newbie and was affected by all cynicism
The reason for all the apparent cynicism is that others have travelled this same route before, there are numerous threads in these fora which testify to that fact, going back years not just weeks. Where should you be asking are the OPs of these aforementioned posts? Nowhere to be seen, they have long ago exploded their accounts & are part of the 95% departure rate of ex-forex traders.
On paper it is possible to do anything, well almost anything, the problem with the forex markets is they are not traded on paper, they are traded on the market which can be a fickle mistress. To obtain large exponential increasing profit on a day by day basis is something from the realms of fiction. The risk factor alone would fry the average newbies/experienced traders brain.
At 5 pips/day on day 50 we are talking $54/pip, 5.4 standard lots, & lets go nowhere near day 100!
So you see it isn’t cynicism it’s realism, yep keep an open mind, be positive but don’t delve into the realms of fantasy.
Why sometimes the spread is more than other times?
…uh hello… why wouldnt he just do $1 a pip and make 40 pips a day on the $1000 account balance with a 20 pip stop loss? its 2:1, 2% risk and your 4% reward? then $10,000 balance would be $10 a pip with $200 risk and $400 reward. doesnt that make much more sense than 2 pip stop 4 pip TP?
or he could do 2 trades each day and make 20 pips a trade for 10 pip stop loss… or he could do 2 15 pip trades and one 5 pip trade or any combination as long as he is UP 40 pips each day using that same 4% it dont matter how he does it… as long as he does it.
You got that right Mizuki, and thanks for pointing out these alternate ways of reaching the same goal. What matters is that 4% increase. In the beginning, the goal could to make more pips but as the account grows, the amount of pips can come down or the person using that method maybe so skilled that averaging 40 pips a day may not be a big difficulti at all.
I would like to hear more people’s thoughts on this.
This method can work well for scalpers. BTW, I saw Greg McLeod of dailyFX make $7,000 with very little amount of pips in about an hour. that was just sick. He made $1000 on 10 pips in a few mins and then it went down, then he made another $1000 on the same 10 pips again. This makes me want to become more of a Scalper then a Daytrader.
Well if you are with a US broker, and leverage of 50:1, you can’t even trade $10 a pip on a $1k account, cause the margin required is $2k…
Hey its great to dream and have huge expectations, and I encourage that… heck I do it all the time… everynight I dream about endless pips… LOL
Obviously it takes some actual trading with real money to curb expectations and anyone who has been trading long enough will realize that its just not practical…
People making thousands of dollars over a few pips are also willing to lose thousands of dollars over a few pips…
Those 4 pips profit would have to be increased though bc you’re compounding your profits every time.