5 Times Leverage, 2% Risk Per Trade Can Make You Rich
This is useless and so deleting it
Pipexplorer, I haven't read any of your material before so I'd like to take this as an opportunity to say hello and welcome to FF.
I am aware and sensitive to the fact that there are things that you don't want to hear as described in your post. That being said, I would like to believe that one of the reasons why you posted this is not only to try to help, but also to get some constructive criticism.
It seems to me that you neglected to calculate losses and are only calculating profits. Unfortunately, one does not come without the other. If my observation is wrong, I would welcome and appreciate that you please point it out to me.
The only reason I said I dont want to hear certain things is because some people are really quick to criticize unconstructively, blaming things on my newbie-ness. I am all open to constructive criticism I have read your posts before on EURUSD thread and I especially enjoy your humour.
As far as losses go, I assumed an average of 40 pips per week. Which means you don't need to aim for just 40 pips but with an average of 40 pips (which doesn't seem like an awfully large number) per week. For example, you might make 100 or 150 pips a week but with losses, if you can average 40 per week or 2080 a year, then those calculations I made would be accurate.
and on a second thought
to kill my time, I prefer reading rookies posts
you know why? bcoz to simplify all the jumbled matters in the world of trading.... rookies money is our money
expand your timeframe, strecth your economic view and diversify
even 1 pip a day or perhaps 1% a day in stock is just extremely difficult and doing that consistently would put anyone above Soros or John Paulson
(I hope this would be constructive)
Here are my thoughts:
If it was that easy, Bernanke would be trading America's way out of debt.
What I do not get: if I net 2% per week
What I do not get: if I net 2% per week there are 2 possible differences to your calculation:
1. The end outcome is much higher: because of compounded trading:
Taking 520 weeks in 10 years would make: 296,544,119 and not 12,482,503.
pipexplorer, try this calculation
i am experimenting this now...
forgot the attachment
eg if you have 25K.
25000 X 5 = 125000
125000 X 40 pips = 500/week---this is 2% of 25000.
Basically its 104% per year for 10 years. 104% of the amount at the start of the year.
Sorry I think you are wrong: e.g
Account Value: 10000
Take profit 2 %: $200 (40 pips)
End amount: 10200
Account Value: 10200
Take profit 2 %: $204 (40 pips)
End amount: 10404
Account Value: 10404
Take profit 2 %: $208.08 (40 pips)
End amount: 10608.08
..... After 1 year (52 weeks): End amount: 28003
..... After 2 year (104 weeks): End amount: 78418
So good for you as this compounds to 296.544.119 in 10 years ;-)
Because what I did was to keep the weekly profit constant. So for example, on a 10000 account, it will be $200/wk for the entire year. (2% of 10000). For year 2, it will be $408 every week- 2% of 20400. In my calculations, the weekly profit for any given year are the same--2% of the amount at the start of the year.
But you're right. Compounding makes it much bigger.
Trading is definitely not rocket science. At least with rocket science, if you get your physics right and make every calculation 100% correct, the chances of your rocket failing are nil barring any human error.
Whereas in trading, every single fundamental and technical factor might be going your way and there is no possible reason that your trade should go against you, but the market can go the opposite way regardless.
Trading is not rocket science, but it is certainly not any easier.
I'm not trying to be a prick, but your estimates are grossly over-optimistic. Getting a consistent 40 pips a week for 10 years is beyond the wildest dreams of even the best traders out there.
I really do hope that you're not trading anything that you can't afford to lose at the moment. But heres some advice, open a small live account with just enough money so that it won't prove to be a financial burden to you if you fail. Trade for a couple of months and then come back and tell us if averaging 40 pips a week is still "super modest and reasonable".
40 pips a week is modest because some people try for 150/day or 1000 pips per month etc. Considering that 40 a week seemed modest to me.
Sorry for rejecting the challenge, it is because I was not overly joyous in the first place. You just misunderstood.
I apologize for the misunderstanding. I was just addressing the part of your post where you claimed that "40 pips a week is super modest and reasonable" and I am just letting you know that neither of those are close to being true.
You have better chances of being hit by a car on a country road in North Dakota tomorrow at exactly 2:30pm than being able to make 40 pips/wk for 10 years.
yeah yeah.. we will all become RICH overnight, dude... heh..
We all know, it's already a FACT that 95% of people lose money in this biz... while the 5% collect that money. It is a ZERO-SUM business, which means that those who win money, earn what the others lose. There is no magic machine that will make you money. Only a PhD, control of tech analysis, plus 5 years of experience in the biz, could "maybe" make you a living.
Forex is FULL of scammers.
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