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Quoting forexalien
How much do you have in your account and what the market will give you is your income.................. Some weeks can be zero, and some weeks can be $2500 or greater....................... This is an open ended question.....................
The question can be deemed as opened ended however the income is what you set aside. Ultimately, many things will depend on if you are profitable or not but what you do with that profit is what the question seems to be geared towards.
The Earth is flat!
Quoting Piquant
{quote} Couldn't have said it better, you obviously "really" get this to sustain yourself with a consistent income month in and month out. I understand for some people who's got jobs and trading part time risking a little high is all fun and exciting but when you're doing it full time with bills to pay I assume its a whole another beast. I can only imagine the distress it will cause if you started taking risk that you can't afford in the name of more profit. You mention that you keep your risk per trade 1% that means your daily DD is...
Hi Piquant,
It's nice to see someone thinking about risk control rather than amazing entry ideas; it is rather more important in reality. To answer your queries:

My per trade risk is 1% max but I trade intraday and usually take several trades daily so my daily drawdown is not capped at 1%, I'm just happy it's 1% per trade. The probability of successive losers is largely a function of my trade success rate, which is 55%-60% historically so a losing sequence is not that unusual. I am comforted by the fact that a winning streak is at least equally likely! Anyone with a grounding in probability can work out the odds easily enough.

If I get to a 10% drawdown I take a break as something is clearly wrong. So, take a breather, have a think, regroup and start again when comfortable. You really don't want to get into a revenge trading downward spiral.

If you can control the risk properly you can trade with greater ease and comfort because you know that the worst that can happen to you isn't going to be that bad and, if you have a decent method, you will recover soon enough. This is why risk control is so important.
Quoting Piquant
{quote} equities for years ? which TF ? don't think the risk is exponential on a retail acc ?
For stocks, I don't really look at time frame, buy and hold as long as the company is growing and not going in opposite direction. And as it slowly grows I still get my dividends for almost a decade. I think I don't think it's consider trading, maybe we can call it 'investing'
The only winner is the one who survive the longest...
Greetings to all ............ Check this bloke out .......


BrenzaJ42 Post 1 “Thinking 3D” https://www.forexfactory.com/showthr...12#post4203912

I wanted to start a thread to receive people's opinions about the amount of pips one needs to make. I currently make about 4000 pips a month with a 100 pips stop using the daily charts. I am looking to take my same strategy on a intra-day level to get more money plus I get bored. I can pull this off with a 10 pip stop loss. The catch here is I may only make 400 pips a month but of course they(pips) would be worth more as I risk about 5-10% per trade.

I used to pride myself on how many pips I could make but the more I think about it, as long as I can make X amount over a shorter time frame, I could just load up on the lots.

I just read an article about being "3D". No need to make a lot of pips as long as you know you can make some, you can just make them worth more. As long as the money management is straight.

I guess I am just curious if a lot of people here go for a lot of pips or some and make them worth more.
Good Trading to All ---- fairwind
Quoting Piquant
I am aware that I'll get variety of different answers depending on the each individuals unique circumstance for someone who's got a family of 4 to feed v single person, someone who lives in an expensive city, area v someone who lives in a place where living costs are relatively cheap. But I was more interested in at which point, in the process of growing your account and keeping your DD relatively low do you stop at certain lot ? 5K, 10K, 20K or 50K and above ? Point at which where it becomes difficult to close your position at the same price ?...
I think the question you should first answer is "how rich do you want to become?" if you want to become a billoniar, then trade away, increasing your account until your anual income is within that region. However, i must warn you depending on your broker, trading very large amount of money at once per trade may cause delays and glitches like that. Talk to your broker find out what amount they can handle best then stick to it.
Always ontop
Anything from 5 to 8 percent is very decent in forex. This will exceed the bank interest and other financial investements if you calculate for the whole year
Avoid what is Strong,Strike at what is Weak
The harsh reality is that if you can achieve even 2% pcm you are in the Elite.

So if you have a 100k trading pot, that's 2k pcm...

If you don't have 100k or if 2k pcm isn't enough - you'll need to either have people copy your trades, sell your signals or open some kind of PAMM.

..I speak from experience and over the many years in this industry I know less than 10 people who are self taught retail FX traders and make a living trading FX year on year.
Even 1% per month (consistently) will attract a lot of attention.

You don't get rich by trading your own money.

Just as important is DD. The truth is most people will not entrust you with their money if your DD is more than 5%.
And even that ... they'll want to see a track record (consistent 1% per month) of years to trust you.

Psychologist Kahneman and Tversky found that people are twice as sensitive to losses as they are to gains ... so ... if you make 10% a year for them they won't be comfortable with you unless your biggest DD is 10/2 = 5%.
Quoting pgr45za
Even 1% per month (consistently) will attract a lot of attention. You don't get rich by trading your own money. Just as important is DD. The truth is most people will not entrust you with their money if your DD is more than 5%. And even that ... they'll want to see a track record (consistent 1% per month) of years to trust you. Psychologist Kahneman and Tversky found that people are twice as sensitive to losses as they are to gains ... so ... if you make 10% a year for them they won't be comfortable with you unless your biggest DD is 10/2 = 5%.
Yes, I absolutely agree with you..Although retial investors on trade copy seem okay with Drawdowns up to 15% (or at least many of the social trading sites suggest this).

If looking for serious money - 5% drawdown is bang on where the pain threshold is
Quoting Piquant
I am aware that I'll get variety of different answers depending on the each individuals unique circumstance for someone who's got a family of 4 to feed v single person, someone who lives in an expensive city, area v someone who lives in a place where living costs are relatively cheap. But I was more interested in at which point, in the process of growing your account and keeping your DD relatively low do you stop at certain lot ? 5K, 10K, 20K or 50K and above ? Point at which where it becomes difficult to close your position at the same price ?...
Making money is a habit. Once you know how to make money, it's not a problem to deal with big money. If you read the life history of rich people you would, they have applied their knowledge in what they love to do and money keeps coming. So you do not need to think like this. Focus on learning and implementation.
Quoting AgusKurniaw
{quote} Making money is a habit. Once you know how to make money, it's not a problem to deal with big money. If you read the life history of rich people you would, they have applied their knowledge in what they love to do and money keeps coming. So you do not need to think like this. Focus on learning and implementation.
stop reading, and wonder out to the fresh air sometimes...
ie. add your first hand experience if you have.
these copy/past type answers wont do much good to anyone in life.
there is always, always another trade!!
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  • Last Post: Jan 14, 2018 4:14am Jan 14, 2018 4:14am
Quoting fairwind
Greetings to all ............ Check this bloke out ....... BrenzaJ42 Post 1 “Thinking 3D” https://www.forexfactory.com/showthr...12#post4203912 I wanted to start a thread to receive people's opinions about the amount of pips one needs to make. I currently make about 4000 pips a month with a 100 pips stop using the daily charts. I am looking to take my same strategy on a intra-day level to get more money plus I get bored. I can pull this off with a 10 pip stop loss. The catch here is I may only make 400 pips a month but of...
Your exit strategy is very convenient, giving your 10 pips sl, I also use such tight stops and I must say it's very Okey for me, in turn letting those entries ride, exploiting trends.
Sometimes peoples opinion on pips target might not do you much good, you know and have a good experience of your strategy. So you should be asking yourself what's the best choice of exit (pips) and stick to it. Cheers
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