I don't think a fix percentage or fix number is possible. Trading for income is extremely stressful and might make you desperate if you are late on your goals.
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Disliked{quote} The question is based on the assumption that there is a system at hand that gives a consistent gain. Thanks for your reply.Ignored
Dislikedyeah one can do it with that much really, with a million or with a hundred but if we are to put into play the percentage, then its a different storry, lets sya we aim to gain 2% monthly then the total would be (A x 0.02) = 2000 => A= 2000/0.02 = 100,000 capital. of course if its a higher percentage then it can be a lower capital, depending on the strategy, the lower the percentage i would say the safer it can be, i hope i got things right, if we are aiming for a 10% a month then your capital should be 20,000 and so on! its very doable actually,...Ignored
DislikedGreetings! I'm a noob and I have a question I can't figure out. So, here I am asking you to enlighten me. How much one needs in his/her account so as to logically gain $2000 monthly. Thanks and God bless you all.Ignored
DislikedHere is what I don't understand. People here are saying it's hard to make 20-30% a month even for pros. Okay so here me out. I'm still a newbie but i've gained a good amount of knowledge in this market. Say you have a $2000 dollar account. Every day you go for one trade. 4 mini lots. And you aim for 10 pips. Every day when you hit the 10 pip mark on a trade you exit out Cashing in about $40. $40/$2000= 2% of your account. And you should also only be risking about 2% of your account on every trade. But once you get 1 trade with 10 pips you're done...Ignored
If w apply the above rules, enough starting capital for 2K/month from the very beginning (important!) probably will mean you need the following:
The above is assuming you follow the rules. I'm taking 2.5K/winning trade cause you'll have losing trades and sometimes a losing streak of 5 if not more. Heck, even better would probably be 5K/winning trade as you will need to withdraw cash every month for expenses. This puts your staring capital at 100K USD.
To summarize, don't even think about starting if you want to earn 2K/month immediatly and don't have AT LEAST 50,000 USD! Do you have that at least? Great you can start and if you follow the max risk rule of 2% you'll be earning a living within the year if you are consistent!
Don't believe me? Fine, do whatever you want, but I can guarantee it that will be back to your 9-5 job before end of year 2017.
Edit: The 2% is because the market indeed doesn't care about you. But exactly because of that you need to limit your risk. It's one of the few things you have controle over. You don't know whether a trade will be a winner or not. It's best to make sure that in case it's not, you don't lose it all. It can be a bit more from time to time depending on how the market is, but DO NOT think that you will survive long if you consistantly risk more than 5%, let alone 10% or more.
Can you see what I am talking about...it isn't just a simple spread sheet calculation of "how much capital do I need to make $ x.00/month?" It has much more to do with your method, and how you trade, as well as what conditions you trade under, and above all...whether the market conditions are presenting for your edge to work.
All of the above being said, the one and usually the killer of most of the traders here, is...do you have the discipline and mental fortitude to act on your edge EACH AND EVERY TIME it presents an entry or an exit? All the above is nonsense and void, if you, YOU, cannot execute your trading edge as you need to. This is the truly incalculable variable. You may have a great edge but if you don't execute it correctly, all your planning and calculation are nullified. This is the part where no one can help you. YOU must find it in yourself to have faith in your edge and take each opportunity robotically. As well, YOU must be able to accurately asses changing and dynamic market conditions in real time and decide whether those condition are conducive to your edge. Often time you have a few seconds to do this (if you trade extremely small time frames)
I'd say you have a few more years of work ahead of you.
DislikedIt's amazing how people in one thread talk about why 95 % (which is a ball park figure) lose with talk of too large leverage, not enough money, bad trading plan, etc. and then in this thread say it's possible to earn 2K on average by DOING EXACTLY THAT! What?! No, just no. He is talking about 2000$ every single month. He basically is asking what is needed to do this is professionally. Doing this professionally means doing this for 10, 20 or even 30 years. One musn't kid oneself. Doing this professionally means also withdrawing and paying bills,...Ignored
Disliked{quote} "I lost 80% of my account (28K) after I woke up to the results of the brexit referendum. 5 months later I'm still working on earning it back using 2% to 3% risk and by neglecting my own rules from time to time I'm still at the bottom that I reached 5 months ago!" Sorry to hear about you loss. Most people are usually too ashamed or still in shock to tell anyone. But, I have to point out that a 2% to 3% risk (more or less) always results in an 80 % loss (more of less) .... it's just a matter of time.Ignored
Disliked{quote} Hey Mingary...don't beat yourself up too badly...we've all been there...mine was the unpegging of the CHF from the EUR. I had to sell my house, my car, my motorcycle, and my wife (kidding)...to recaptialize. But I learned from the experience and have since improved my execution as well as how much I leave at risk over the week end. As well, I have now learned NOT to put all my trading capital in one account.Ignored
Disliked{quote} "I lost 80% of my account (28K) after I woke up to the results of the brexit referendum. 5 months later I'm still working on earning it back using 2% to 3% risk and by neglecting my own rules from time to time I'm still at the bottom that I reached 5 months ago!" Sorry to hear about you loss. Most people are usually too ashamed or still in shock to tell anyone.Ignored
DislikedBut, I have to point out that a 2% to 3% risk (more or less) always results in an 80 % loss (more of less) .... it's just a matter of time.Ignored