Dislikedhmm, let's have a think for a moment if someone has $1000 is it possible for them to make 1% in a day? of course it isIgnored
Forex - trade your way to millions 60 replies
Make Millions Trading Fx 206 replies
slow and steady trading to the millions... 18 replies
trading with 10 millions VS 1 million ?? 24 replies
Dislikedhmm, let's have a think for a moment if someone has $1000 is it possible for them to make 1% in a day? of course it isIgnored
DislikedLet me put it another way, there is probably not a liquidity issue with 1 million bucks, right?
So, if somebody claims he makes 80% a month, then he can compound starting with 1000$ up to 1 million bucks, cause that takes exactly a year. That is a 100,000% return. I personally have never heard of anybody who was ever able to do that and I also don't think anybody exists who can pull that off. (I might be wrong though).
But it is just so unrealistic that everybody on the forum thinks they can even come close to such a high yearly return. Yes, the...Ignored
DislikedMaking 1% a day seems like a reasonable and realistic goal but it is STILL a fantasy. If you could make 1% a day then in 5 years you would be richer than Bill Gates and sitting on $77,002,912,750, starting with only $1,000.Ignored
DislikedThe second question is ultimately answered with the max drawdown your strat is experiencing. Obviously with a method that only has 20% drawdown, you can go in with higher lot-size in general, than a method that has 50% drawdown.Ignored
Dislikedbut why would someone with a million to trade with WANT to continue risking 1% per trade?
once the poverty line is breached, and then the wealthy line, then why continue risking so much to then make a trillion and own a country, and then make a gazillion and then own the universe, and then make a crapoblahblahbillion and own existence, and then own reality.... and so on etc.
surely this would be stressful trading at it's absolute worst. not everyone WANTS to have more money than buffet and could handle the stress of it all. having the ability...Ignored
DislikedActually sorry, I think you can't just calculate it like that if the yearly figure is compounded, let me think it through...Ignored
Dislikedso answer my other 2 questions then.... if you can scrape out a few dollars after a day of trading then what account size must you have to make this a reasonable percentage gain as per your self-imposed growth rate?
$10,000?
$1,000,000?
what would satisfy your genius maths and make a few dollars gain in a day within the realm of possible account growth?
i don't actually care about your answer.Ignored
Dislikedwhy the heck do people look at making the millions from forex...honestly...
why not just pay off the mortgage? why not just double your annual income? each of these steps will lead to less worry, more spending power, better lifestyle...you might then have spare cash to put into property, stocks, bonds, whatever you fancy...if you triple your average annual income, thats far better than what average joe may ever achieve...
so dont think i wish to make 1% a day, id say make what you make in a month, then try and double/triple that, then decide...Ignored
DislikedExactly, and if you can double your money each year for 10 years, you will be at a million dollars, if you start with 1000$. I rather go for slow but consistently.Ignored
Quoting mr_breakoutDislikedYou are asking the wrong questions. The real question is : what is the average monthly return on investment (ROI) of my trading system, period. And more importantly, what is the maximum drawdown of my system.
Knowing these two variables will allow you to maximize your profits through proper position sizing for X starting capital.Ignored
Dislikedno, maybe you didn't understand my example correctly. I was saying the trader only compounds from $1000 to $ 1 million. And that is already a 100,000%. I didn't say about anything above 1 million. I just believe it can't be done in a year. My personal belief.Ignored
Dislikedwow. so you copied what custos literally JUST said? that's your plan? what you said is OBVIOUS AND GOES WITHOUT SAYING. but just because you can't get any better than what you get doesn't mean nobody else can do much better than you or custos. i can't bake a cake, so does this mean no one can? flawed reasoning does not a proof make! you might suffer major drawdowns, but that doesn't mean everyone else will.Ignored
Disliked....why not just pay off the mortgage? why not just double your annual income? each of these steps will lead to less worry, more spending power, better lifestyle...you might then have spare cash to put into property, stocks, bonds, whatever you fancy...if you triple your average annual income, thats far better than what average joe may ever achieve.Ignored
DislikedIf a trader could consistently double his money each year, his Forex broker would notice and soon he would have Soros, Warren Buffet, Bill Gates, the CEO of every major bank and just about every hedge fund in the world (not to mention his own broker) banging at his door non stop and begging him to trade their money.Ignored
Dislikedlook at it this way. i just quickly worked-out what $1000 compounded at 1% per day is after 200 days. i don't actually know how many trading days there are in a year, but i figure 200 is surely close enough if not even on the low side. by my possibly broken math i got $7,316 plus change.... which is nowhere in the vicinity of a million! but because $7k is 700% of $1k you don't consider it feasible. multiple trades each and every day x 200 trading days and this seems unreasonable? if it was more like $1.2k ending capital then that would satisfy...Ignored
Dislikedthe things is this... i have no doubt you have your EA running and making you x% a year. but if i'm not mistaken you also mention somewhere your tests revealed a 50% drawdown somewhere along the way. do you think everyone would, could, or should cop a 50% drawdown? do you think there are traders out there who manage their risk differently and couldn't fathom ever reaching a half-capital loss at any point in time?Ignored
Dislikedi personally couldn't imagine someone trading intraday ever reaching the point where they have a 50% drawdown. if they only risk a very small percentage per trade and after experiencing a series of x wins and y losses that finally resulted in a 50% drawdown then how many trades would they have had to have gone through each and every day after day after day to get to that point? i would imagine a LOT. that would probably be a lot of breaking even at points, and then a drop in capital, some minor gains, and then more dropping of capital, over and...Ignored
Dislikedcustos : you replied to monkey@forex as though he was agreeing with your perspective of excessive gains being IMPOSSIBLE. try re-reading it from a different perspective. re-read his post with the perspective, similar to what i have been saying, of not everyone wants or needs to make a gazillion and is happy to breach a level of wealth and maintain that level of success. not everyone is out to beat buffet and soros... some people just want to be able to live a comfortable life, and having the ability to generate large amounts of capital doesn't...Ignored
Dislikedevery so often the fabled hedge fund trading gods get mentioned. their % gains are the benchmark set for everyone according to some people here. if hedge fund ABC only makes 15% gain in 2010 then surely no one else in the trading world could have made more than 15%.... but if we should aspire to only make around 15% or UNDER then do you also believe that at any point a trader in ABC hedge fund would be permitted to lose half of their capital? i don't know the answer, but my intuition tells me they would be booted out of the door or put in jail...Ignored