Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

1% Money Management is a myth, fib is a myth and so on.. 45 replies

Myth busted: FOREX doesn't have directional bias 19 replies

MB Trading's forex announcement next week -just hype or possible game changer? 27 replies

Myth Busters the Forex Edition 251 replies

Attachments: Can someone become Retail Forex Millionaire - myth/hype/dream
Exit Attachments

Can someone become Retail Forex Millionaire - myth/hype/dream

  • Post #1
  • Quote
  • First Post: Aug 27, 2016 2:09am Aug 27, 2016 2:09am
There are some questions that are frequently asked by traders:

  1. How much money can I make through forex trading every month?
  2. How many trade setups will I have every day?
  3. How many pips can I make every month?
  4. Can I start with a $100 account?
  5. ... so on...

Among all the frequent questions, there is one question which is also asked by some traders whats the 2 common mistakes letting most down :

a) It is the greed that makes you think that it takes too long to grow a $5000 account to one million. When you calculate and see that it takes you for example 5 years to do that, you give up on it, and you try to find another method which can grow your account faster.

b)That is one of the biggest mistakes that a trader can make, because I have seen so many traders who wasted over 10 years looking for a more profitable trading system. They not only could not find or develop such a system, but also lost the chance of making money and growing their accounts through a trading system that worked slow but steady.

 

  1. Attached the Forex Plan Spreadsheet
    Attached File(s)
    File Type: xls Forex-Plan.xls   17 KB | 1,015 downloads
    to visualize how a $5000 account can turn into $4,097,003.56 after four years, and $21,919,993.73 after five years, if you make only 15% profit every month. (or) how long it takes to $1000 account to reach the million figure..

  1. Four or five years is not a too long time to become a millionaire. Besides, many traders are able to make a lot more than 15% profit per month. I dont want to give any numbers here not to be accused of misleading the novice traders. But, there are so many traders who make a lot more than 15% profit every month. So, these traders can become millionaires much sooner than 4 or 5 years. You can be one of them too.

Are you ready to follow the simpler and easier way to become a consistently profitable trader, and so a millionaire?

Money management and lower leverage are the answer to sustain profitability staying away from Over Leverage/Greed/Fear/"always trading" mentality rather than high probabilistic trading..

Scoobi doobi doo
You show that you know how to calculate compound interest, but to be realistic, your worksheet must take two things into consideration: 1) Lot size and number of positions is limited by the broker, so at some point the account growth becomes linear. 2) The bigger the lot, the bigger the slippage, and the account grows slower.
Nice sharing...
15% a month? many traders in FF can do better..

Slow and steady is a completely different thing, something not everyone can do
i worshipped... Momentum
Quoting fredix
You show that you know how to calculate compound interest, but to be realistic, your worksheet must take two things into consideration: 1) Lot size and number of positions is limited by the broker, so at some point the account growth becomes linear. 2) The bigger the lot, the bigger the slippage, and the account grows slower.

Also you should taken into account the broker whom you are trading - are they real ecn or dma unlike several bucketshops broker who simply use the virtual trade plugin on Meta trader platform to make you lose and reverse your positions plus same cases keep the trades in house won't send it outside.

Also some of my friends made huge profits using tick scalper with broker blocking them for withdrawal saying they used arbitrage which they didn't. We need to know what are we getting into before trying to achieve the goals!
Scoobi doobi doo
Hi!
It all looks nice and pretty in an excel file...but then the feelings nation attacked )
Us humans have mood swings, subjective risk appetite, greed, fear and so on.

Also 15% per month takes you to 180% per year (not compounded!!) which in my humble opinion is just disturbingly huge. But then again, that's just me.
I'm most certain that there were people who did this, but never had the change to meet one. Maybe that's because i'm guessing just 0.something% out of all traders managed that consistently.

Second remark: why a million? is that amount the finish line, the ultimate goal? That's such an arbitrary number... (<- human subjectiveness)

I think focusing on achievable targets percent wise should be the main goal and not x amount of cash.
Always bear in mind that banks give you in the most optimistic deposit 2-3% per year!! beat that for 4-10 years straight and then convince others to move their money under your management.

good luck in your journey!
Quoting BooG
Hi! It all looks nice and pretty in an excel file...but then the feelings nation attacked ) Us humans have mood swings, subjective risk appetite, greed, fear and so on. Also 15% per month takes you to 180% per year (not compounded!!) which in my humble opinion is just disturbingly huge. But then again, that's just me. I'm most certain that there were people who did this, but never had the change to meet one. Maybe that's because i'm guessing just 0.something% out of all traders managed that consistently. Second remark: why a million? is that amount...

Its just a milestone - million for traders similar to mountain climbing guys who have milestone of mt everest
Scoobi doobi doo
Quoting Scoobidoobi
{quote}mountain climbing guys who have milestone of mt everest
aha. ok now it makes sense pushing an account from 500 to 1kk is an extremly hard mission . not impossible but not far from it.
Through the years i learnt from this bussines that setting realistic goals is actually helping you achive them to some extent.
The journey is very steep and in the last part loosing will mean tens of thousands of dollars, that's gonna take a toll on the mental side.

also don't forget to have fun!
I think you would be very hard pressed to find a single person in the entire world capable of sticking to this spreadsheet.

It may start out OK but pretty soon problems will arise with getting orders filled. Most of the bigger brokers should be able to handle up to 50 standard lots but beyond that is very iffy.

Rather it is better to think in terms of what you would like to earn realistically per week some time in the future and make that your long term goal.

Start with the sum you would like to make weekly and grow the account making it easier to achieve this.

For example I would like to make 3% per day for 20 pips to equal $600. So I deposit $600 and begin the journey to grow the account to $20,000. From this point on I can begin to reduce the 3% to 2% and 1% and so on. In other words my risk gets smaller yet I still make the $600 a day for the same 20 pips.

Leverage is the key tool in your arsenal so you are able to strike when the iron is hot and make a radical profit propelling your account upwards. Just because you have high leverage doesn't mean you have yo use it all the time.

My account it well on its way down this path with July start at $2161 growing to $5939 ( I started this account with just $200) By this month August I have put $8,500 in the bank and now my current trading account stands at $753. I feel it is important to keep banking profits keeping the money and all the effort safe.

My hope is to have the $20,000 by the years end and I am well on track for that.

Making 3% per day for 20 pips is not very difficult and often much more can be made, I just set this as my minimum. One day last month I made 22.47% because I had the leverage available to do it. (400:1)

August has not been so good for me though my account is still growing I have had several problems slowing me down a tad. September should be better, market willing.

I don't think talking it terms of millions is very helpful. The most I have grown an account is from 7k to 56K in 170 trading days then I paid myself for all the effort and started over again.

Hope my experience helps put a handle on this subject.
Quoting Nala66
I think you would be very hard pressed to find a single person in the entire world capable of sticking to this spreadsheet. It may start out OK but pretty soon problems will arise with getting orders filled. Most of the bigger brokers should be able to handle up to 50 standard lots but beyond that is very iffy. Rather it is better to think in terms of what you would like to earn realistically per week some time in the future and make that your long term goal. Start with the sum you would like to make weekly and grow the account making it easier...
Nice insight Nala on your real time experience. Can you share the Money Management Spreadsheet /lot size calculator that you use along with leverage you prefer and broker you trust for payouts how much it may be...
Scoobi doobi doo
  •  regme
  • | Joined Mar 2010 | Status: Planning to be like Warren Buffett | 115 Posts
Quoting Nala66
I think you would be very hard pressed to find a single person in the entire world capable of sticking to this spreadsheet. It may start out OK but pretty soon problems will arise with getting orders filled. Most of the bigger brokers should be able to handle up to 50 standard lots but beyond that is very iffy. Rather it is better to think in terms of what you would like to earn realistically per week some time in the future and make that your long term goal. Start with the sum you would like to make weekly and grow the account making it easier...
Good Nala66. When you earn that $20K. Then Don't stop. Open multiple accounts with multiple brokers and work. It is an old saying " Don't put all your eggs in one basket".
Let me make one thing very clear... I have been trading for donkeys years and have been to 20K many times but one thing you folks have to get is that you have to pay yourselves otherwise there is no point to all the hard work.

The trick is to start with a little and end with a lot...Not to start with a lot and end up with a little.

Not many people are interested in making just 3% of $600 and compounding it daily but that is what I am personally interested in and banking money along the way is very important to me. I see people all the time get so far along the path and then for some reason or other take a massive hit, the only protection from this is to bank sizable chunks and keep things ticking over steadily.

I told you I expect to make 3% for 20 pips and do this easily every day. So my spreadsheet works out 3% of my account divides this by 1.25 because I trade the GJ and my base currency is in Aussie dollars then again divides this by the 20 pips required.

Thus if I have say $1000 then 3% is $30.

$30 divided by 1.25 = $24

$24 divided by 20 pips = 1.2 mini lots or 12 micro lots or 0.12 standard lots whichever you prefer.

So my spreadsheet tells me to trade 1.2 mini lots and aim to get 20 pips. (for the $1,000 account).

I employ a variety of ways of getting the job done but I don't quit for the day until I have done it. Do I get losses? sure I do and these then have to be compensated for in subsequent trades. My stops are very tight, mostly less than 10 pips.

Lets say I take a 10 pip loss i.e. 1.5% Then my lot size would increase for the next trade with the target still being 20 pips.

With a 400:1 leveraged account 3% is about one tenth of the available funding to trade, a reasonable size of a buffer.

The GJ cost me about $44 per mini and returns me about $1.25 per pip. (at the moment, these prices change)

I don't see any value at all with having multiple brokers, I currently use Axitrader and have had no issues with them at all.

I only trade the one pair because it takes a lot of work to see what the market is doing and where it is heading, trying to do this with more pairs is just plain stupid and far too much work.

If a person cannot turn $600 into $6,000 then what on earth makes them think they can turn $6,000 into $60,000. One has to learn to grow with the account and not be intimidated by it from the onset. The easiest way to a million dollar account is to start with two millions.
In the Fx class I attended, he took an excel spreadsheet to show we can make millions in few months. Not many of the students are still trading...some almost went burst! Some blew their accounts many times.
You need a consistent strategy, stick to your plans, be ready to close the trade when it reach your SL in mind and be ready to close it when it reaches your TP target.
We are either too optimistic when drawdown or we are too greedy when market moves on our side.
In my excel calculation i need only 10 trade to make $1 to 1M
If you like my post throw me a Doge: D9eyP5TFYGDaN1JpjyU4jaU9ypg2wUk8Zp
Quoting PipMaxzz
In the Fx class I attended, he took an excel spreadsheet to show we can make millions in few months. Not many of the students are still trading...some almost went burst! Some blew their accounts many times. You need a consistent strategy, stick to your plans, be ready to close the trade when it reach your SL in mind and be ready to close it when it reaches your TP target.


We are either too optimistic when drawdown or we are too greedy when market moves on our side.

Wellsaid PipMaxzz - some traders are very over confident to even remove their SL exhibiting bravado to prove that they are correct not Mr Market eventually it costs them their account go bursts..

Also another bravado exhibiting they do is to perform "Martingale/Grid" adding to the wrong positions which is 100% suicidal..

We all could have committed such mistakes am not blaming the psyche of human emotions of over confidence/fear/greed. Its more of mental thingie to fight out the markets on a daily basis with same method to consistently pocket profits!
Scoobi doobi doo
Quoting Scoobidoobi
{quote} Wellsaid PipMaxzz - some traders are very over confident to even remove their SL exhibiting bravado to prove that they are correct not Mr Market eventually it costs them their account go bursts.. Also another bravado exhibiting they do is to perform "Martingale/Grid" adding to the wrong positions which is 100% suicidal.. We all could have committed such mistakes am not blaming the psyche of human emotions of over confidence/fear/greed. Its more of mental thingie to fight out the markets on a daily basis with same method to consistently pocket...
I made my first milliom because of forex but not in it. I stumbled upon cryptocurrency which was my calling being a software engineer I have a chance at changing the world and become wealthy in the process. Trading forex is dead to me but cryptos are way easier more fun and more profitable.
  •  Soros
  • Joined Sep 2012 | Status: Edge,Phsycology And Money Managemen | 949 Posts
Quoting sidhujag
{quote} I made my first milliom because of forex but not in it. I stumbled upon cryptocurrency which was my calling being a software engineer I have a chance at changing the world and become wealthy in the process. Trading forex is dead to me but cryptos are way easier more fun and more profitable.
how did you make a million.
I am what Many Dream to be but only a few can achieve, im a part of the 1%
Quoting Soros
{quote} how did you make a million.
You know last news bitcoin from HK?
If you like my post throw me a Doge: D9eyP5TFYGDaN1JpjyU4jaU9ypg2wUk8Zp
Spreadsheets are magic are they not. They simply rely on the 'IF' factor, a small word with huge problems.

When trading speed is essential and calculating what lot size to use for xxx risk uses up this time while the market is moving on. Plus we have to fill out the ticket to get the order in.

Looking to a spreadsheet to do this for you saves a lot of this time so we have our stop, entry and target right in front of us. I don't think it is good practice at all to try and determine the future of our account via a spreadsheet, this is ultimately going to be down to the skill of the trader.

It only takes one bad trading mistake and the account suffers dramatically, the larger the account the more drama is involved. To me it is absolutely vital to control the risk at all times, profit is a by product of good management.

The larger the account grows the less risk % is required to achieve the daily target. It is only when we get greedy and risk more that causes mental problems.

As traders we have a task to perform to produce a profit the more time we take the less efficient our task becomes (I once tripled my account in 17 seconds, that is once in possibly a lifetime). I like to get the task done and dusted as quickly as possible and then I can do other stuff. I know others like to trade the higher time frames like the daily but to me this is just time wasting for far less returns i.e. very inefficient.

All time frames are fractal the only difference is time itself. Price is going to move relative to the time so all the talk of one time frame being better than another is just plain rubbish. To grow an account takes darned hard work involving timing, plotting, planning and most of all risk assessment. Don't dream about what could be, rather take action and make it be one bite at a time.
Actually I believe to be a big winner in this game you need to be prepared to be a big loser also.

The term losing only what you can afford is critical. One takes this sum of money and pushes it to the hilt with each trade. Sure you can blow the account but just like a lottery you can also win big time. A spreadsheet can show you the massive potential of winning xxx trades in a row where just one trade may simply wipe out the account so we have to start over. I know people who do this and claim the string of wins more than pays for their losses but what is a string, how long is it, when is the return banked.

I would suppose all the past losses are added together and then anything won beyond this is a profit and thus time to start over.

So for example if we are prepared to lose $200 and blow this 5 times we are 1k down. Then a string of wins gets us 1.2K meaning we can start over always looking to get the winning string before we get a losing one. I know one guy who exposes $1,000 in this way aiming to make $100,000 before he starts over anew. These guys are about as aggressive as they come, always pushing the boundaries and fearing nothing. Imagine getting to $90,000 and losing the lot, it would hurt me but they don't bat an eyelid. They simply stick to a game plan they know works over time and have fat bank accounts so losses don't bother them at all.

I see people in the FF trading 10c a pip but never see people trading $500 a pip. There are great differences between those just experimenting with so called systems and indicators and those that approach trading in a far more aggressive manner. When does that great leap take place?

Mostly it never takes place because people give up. They lose consistently and quit. The fact is you are not going to find the big players in these forums because to them it is a total waste of their time, we mere mortals just huff and puff a lot of hot air and get nowhere.
In my opinion acquiring CONSISTENCY as a mental skill is far more important that any specified monetary gain. I'm a swing trader using the daily timeframe and I aim to be profitable month in, month out first, and second preferably the percentage gains to be larger.
Keep alive a genuine winning attitude
0 traders viewing now