Trading capital

Goforextra · August 5, 2015, 8:17pm

Great positive encouragement post which people should note:). Very important…to experience the true emotion of trading I would however recommend trading REAL instead of DEMO even $500 to start with.

jayboii478:

ROI depends on your Risk reward and money management as everyone will say. But some of my mentors trade with 2% risk at a time and bring back 2%-4% per a trade, not all win but with the right risk reward it surely pays off. Roughly 3 trades a week, 2% risk, 2 win at 3% gain and one loss at 2% equals 4% gain, 20% a month, 240% a year, those are very rough numbers, also all saying that they work out at 2 win 1 lose, which is never always the case, you will have weeks were you just don’t win at all and that’s a drawdown, so making that 240% to 180%, but you get the point. but if you got the right risk reward it can work. 150% a year is a very high number to reach for indeed, but if you have high probability trades with good money management and risk reward, anything is possible.

Broodbaby,

trading is what you make it to be, if you trade with 2k capital that is 100% fine, just don’t get risky until you have experience under your belt and have a good grasp on the market. Pipdiddy made a great point, DEMO DEMO DEMO I cannot stress that enough, really demo to get that feel for the market and the screen time. Like I just said, you pull in big or small numbers, it depends on what you’re aiming for and your risk reward and money management. It wont happen overnight and to get big numbers it will take a while and a larger capital.

10,000$ account at 2% risk per a trade

200$ risk, say SL is 50 pips set each time for maths sake, making lots traded about .4 (.4x500=200$)

you try for 2:1 risk reward at least

You place 2 trades both win at 100 pips
200 pips profit
3rd trade loses at 50pips

150 pips profit.
1500x.4= 600$

600$ profit off of those trades, say in a perfect world that was one week. Gain capital, risk the same, good R&R and MM and numbers will go up.

Goforextra · August 5, 2015, 9:27pm

By the way I may be a ‘newbie’ on Babypips but I have been trading since 2003.

Damien1881 · August 6, 2015, 1:18am

If you’re NOT making any withdrawals and compounding, 4% a month will actually give you a return of around 60% PA. Have a look at myfxbook, money managers (PAM/MAMM accounts), it is very possible, but the more you make, the more you put your account at risk, the bigger the account, the smaller the risk and reward is what I normally find.

jayboii478 · August 14, 2015, 11:00pm

Thank you! I was new 3 years ago and struggled a ton, now I look at forex in a new light and try to shine that light for others to follow! Hopefully they can bring success out of it

forexcrisp · September 6, 2015, 12:26am

That’s they way to do it a good trader sharing his knowledge is a great help to newbies. 3 years is a lot of time, if you aimed at right spots, you can become a very good trader.