Numbers-wise, what's needed to make $100/day with $5K account? | Forex Factory

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Numbers-wise, what's needed to make $100/day with $5K account?

  • #1
  • First Post: Edited Sep 11, 2017 6:36pm Sep 10, 2017 5:36pm | Edited Sep 11, 2017 6:36pm
Okay, the reason I used the word "numbers-wise" in my title is because I prefer not to get responses such as: "You need to be a skillful trader", "you need great money-management", "you need patience", etc. Okay, I know all those things. Instead, I want to specifically focus in this instance of what - mathematically - is needed to make $100 per day with a $5000 account.

For example: do I need to risk 1%, 2%, 3%, or more per trade? Do I need to make a certain number of pips per week (if so, then is there a particular number)? Do I need to compound my profits ... or, just trade normally without compounding? Is a specific SL and TP needed (if so, what SL and TP would I need)?

The above is just some examples as a basic idea of what I am talking about. I'm not expecting everyone to answer each and every one of those questions. I just basically want to know what is needed to make $100 per day with a $5000 account. Having said that, it does not necessarily have to be with a "$5000 account". If $100 can be made with a smaller account size, then great! Let me know mathematically what it will take. Conversely, if $100 a day cannot reasonably be done with a $5000 or less account, then will up to $10K be needed? Or will it take even more than that?

I will very much appreciate any replies you guys have to offer. No reply will be looked down on (at least not from me!). I'm open to all suggestions.

Edit: Here's a bit more info of how I plan to trade (it may help those of you replying). I plan to have a risk/reward of 1:2 the majority of the time. In some cases it may be a bit higher, but most of the time it will be 1:2 ratio. If I feel there is not enough room to the next resistance in order to get the 1:2 ratio, then I skip the trade.
"Dream big and dare to fail." - Norman Vaughan
  • #2
  • Sep 10, 2017 6:18pm Sep 10, 2017 6:18pm
OK, I'll take you seriously.
First of all, it depends on how good and consistent a trader you are. To make a $100 a day, it would require you to make 2% a day (very difficult unless 100% of your trades are correct). Even if you risked 2% a trade and had a 1:1 RR, 1 losing trade would put you at -2% drawdown.
My advice (if you are a good trader) would be to do what I attempt - Risk 1% and take 2 or three daytrades with a 1 to 1.5% RR. I then assume that I will make 2 out of three trades, giving me a 2% net return. Sometimes that works and other times - not so much. I seem to average just over 1% a day.
Good luck, and I hope that helps.
  • #3
  • Sep 10, 2017 8:19pm Sep 10, 2017 8:19pm
work it backward.

what is a reasonable return you think you can achieve based on your most recent 100-500 trades?
to simplify, make it a monthly target, less fluctuation than day to day...
once you got the number sorted, you can work out the equity needed on average to make your monetary goal.
i dont like these sort of targets, just extra pressure that the last thing needed in trading, but somewhere we all need a goal to try to achieve.

if you dont have yet a way to make consistent profit of any sort to start with, the least money you throw behind this idea the better for you this stage!!
( money saved for later when you dont need to ask these questions!!)
there is always, always another trade!!
  • #4
  • Sep 11, 2017 4:28am Sep 11, 2017 4:28am
Quoting Ace_1
Okay, the reason I used the word "numbers-wise" in my title is because I prefer not to get responses such as: "You need to be a skillful trader", "you need great money-management", "you need patience", etc. Okay, I know all those things. Instead, I want to specifically focus in this instance of what - mathematically - is needed to make $100 per day with a $5000 account. For example: do I need to risk 1%, 2%, 3%, or more per trade? Do I need to make a certain number of pips per week (if so, then is there a particular number)? Do I need to compound...
With respect you are asking the wrong question.

First you need to know your edge, your likely drawdown risks, the number of trades per day etc etc etc, there is no one size fits all, how much money you can make will vary greatly depending the strategy you employ.
I live entirely from the growth of my personal trading account
  • #5
  • Sep 11, 2017 7:05am Sep 11, 2017 7:05am
To make a $100 per day; If you trade _____ volume then you would need ____ pips (assuming dollar quoted pairs for simplicity xxx/USD)

0.01 lots - 1000 pips
0.10 lots - 100 pips
1.00 lots - 10 pips

Based on your $5k account size you should probably be trading 0.02 - 0.08 lots per trade depending on where you place stops or set manual stops etc which would mean you need to gather around 150 - 500 pips per day.

Quite possible if you would consider that there are about 7 million pips waiting every single day....

Consider it another way... to make $100 from $5000 that is a 2% return per day so you would be risking 2% per day. Are you comfortable risking so much?
  • #6
  • Sep 11, 2017 7:37am Sep 11, 2017 7:37am
Quoting Ace_1
Numbers-wise, what's needed to make $100/day with a $5k account?

I understand what you want to know, but can't give you that information for the same reason explained by Guy, above.

What I can do is tell you what you need to know.


Quoting Ace_1
I prefer not to get responses such as: "You need to be a skillful trader", "you need great money-management", "you need patience", etc. Okay, I know all those things.

Ok, understood. You want figures, not generalisations. I'll give you figures.

Maybe 1% (I suspect actually fewer) of retail forex traders will ever get as far as steadily making 5% profit per month on their accounts.

To keep the numbers easy, let's allow for 20 trading days per month (there are really 21/22).

You want to make $100 per day, which is about $2,000 per month.

The top 1% (maybe less!) of retail forex traders can make that - on average and with some losing months included - with an account of $40k, because $2k is 5% of $40k.

I'm guessing that you're not really in the top 1% of retail forex traders (no offense, but that's clear from your question!) which means that you're going to need a lot more than a $40k account to have any chance of doing this, and that's after many years of experience, education and practice.

But you're seriously asking about doing it with a $5k account?!

Do you see why this can't be answered and (as Guy mentioned) it's the wrong question?

"Daily averages" are a terrible way to look at it. Monthly averages mean something, but even they need to be worked out over a long period of time, and they'll always include some losing months in their calculation.


Quoting Lifestudent3
Consider it another way... to make $100 from $5000 that is a 2% return per day so you would be risking 2% per day.

This "reasoning" is no better than the OP's. That would arguably be true if - for example - you traded only once per day, with equal sized targets and SL's, and had a 100% win-rate. Otherwise it doesn't mean much, and it isn't helpful. The typical trader will have to risk WAY more than 2% per day, to make an average profit of 2% per day.

No offense intended to anyone, but this thread is just dream-world stuff.
  • #7
  • Sep 11, 2017 8:05am Sep 11, 2017 8:05am
It's distressing that someone who joined the forum nearly 5 years ago and has made 200 posts is asking this question, in these terms.

Like others, no offence meant, but if you had ever read a simple beginners' trading textbook, you'd know why this is such a wildly inappropriate question. You can't learn to trade from a forum, where there's just no quality control of "information".
  • #8
  • Sep 11, 2017 11:21am Sep 11, 2017 11:21am
I have a 5k live account on trade explorer. I risk about 2 - 3% per trades, so I make sure all my SL doesn't go over that amount. And really I don't take anything less than 3x or better ++ when I have a winning trade. You don't need to complicate things just make sure when you do win, your wins are far more bigger than losers. Also all your losses must be fixed or lower than the % you want to risk. If you goal is to only make 100$ a day, its definitely possible with a 5k account.
And remember you could have a 25% win rate and be successful. Honestly win rate aren't important if you know how to lose and how to win.
  • #9
  • Sep 11, 2017 11:49am Sep 11, 2017 11:49am
Quoting 3to1trades
I have a 5k live account on trade explorer. I risk about 2 - 3% per trades, so I make sure all my SL doesn't go over that amount. And really I don't take anything less than 3x or better ++ when I have a winning trade. You don't need to complicate things just make sure when you do win, your wins are far more bigger than losers. Also all your losses must be fixed or lower than the % you want to risk. If you goal is to only make 100$ a day, its definitely possible with a 5k account. And remember you could have a 25% win rate and be successful. Honestly...

Stay lucky...
I live entirely from the growth of my personal trading account
  • #10
  • Sep 11, 2017 11:53am Sep 11, 2017 11:53am
you'll need 2.4k on average a month... so thats almost 50% of a 5k account.... if you dont compound then you'll find it more achievable after a few months... because the %% ROI will be lower as your balance will be higher...

in other words, you aren't going to make $100 a month consistently with 5k... id say 0.5% a day is achievable with some ease... that would require 20k.
  • #11
  • Sep 11, 2017 11:55am Sep 11, 2017 11:55am
Quoting GuyBaker
{quote} Stay lucky...
Its not luck. Just capital management.
  • #12
  • Sep 11, 2017 11:55am Sep 11, 2017 11:55am
Your whole idea is flawed.

A real trader doesn't make money every day.
He only makes a lot of money when there are opportunities.
  • #13
  • Sep 11, 2017 11:55am Sep 11, 2017 11:55am
Quoting Quickly
It's distressing that someone who joined the forum nearly 5 years ago and has made 200 posts is asking this question, in these terms. Like others, no offence meant, but if you had ever read a simple beginners' trading textbook, you'd know why this is such a wildly inappropriate question. You can't learn to trade from a forum, where there's just no quality control of "information".
i learnt to trade right here, in this forum. no books, the odd youtube video, but other than i learnt from here.

Quoting The-Flipper
You're whole idea is flawed. A real trader doesn't make money every day. He only makes a lot of money when there are opportunities.
a retail trader can make money everyday... 0.5% a day is 10% a month...
  • #14
  • Sep 11, 2017 12:08pm Sep 11, 2017 12:08pm
Quoting 3to1trades
{quote} Its not luck. Just capital management.

You have 8 days history... It is impossible to say whether it is luck or not, come back here in 3 months and show us what you have.
I live entirely from the growth of my personal trading account
  • #15
  • Sep 11, 2017 12:17pm Sep 11, 2017 12:17pm
Quoting GuyBaker
{quote} You have 8 days history... It is impossible to say whether it is luck or not, come back here in 3 months and show us what you have.
My TE will be up and running.
  • #16
  • Sep 11, 2017 1:11pm Sep 11, 2017 1:11pm
Quoting 3to1trades
{quote} My TE will be up and running.

Bon chance...
I live entirely from the growth of my personal trading account
  • #17
  • Edited 6:38pm Sep 11, 2017 6:06pm | Edited 6:38pm
Quoting Quickly
It's distressing that someone who joined the forum nearly 5 years ago and has made 200 posts is asking this question, in these terms.
Hi Quickly,

Okay, yes, I can certainly see why you feel that way. But here's the situation. Even though I've been involved in forex for several years, I have never taken it seriously enough. I have wasted too much time on gimmicks such as EA's and methods such as "trade when 3 ema crosses 5 ema" (or whatever ma number). When, instead, I should have been doing REAL trading such as basing my trades on price action, support and resistance, etc. I am now finally moving away from the gimmicks and am now trading based on price action. I learned about trading price action from free videos of Nick Bencino, Steven Primo, and others on YouTube (I have not spent any money whatsoever on their training courses). I've also learned from posts here at FF, in regards to price action trading. So YES we CAN learn from people here at FF. But at the same time I do still highly recommend the free price action videos at YouTube.

And in regards to the question I have asked about how to mathematically go about making $100 per day, it may sound crazy but I've rarely thought about the specifics needed to make a worthy amount of money in forex. I've been focusing SO much on forex gimmicks and how to make pips by way of EA's, moving average crossovers, etc, that I never really thought about a specific detailed mathematical plan to make enough money to make it worth my time. I've never been great at mathematics and that is why I made this thread. I just want to know that even if I get to the point of averaging, for example, 100 pips per week, then will it still be worth it to trade forex? Is trading only worth it for those that have 20K, 30K, or 50K accounts? If so, then many of us are wasting out time here. That is what I basically am trying to find out.

By the way, if needed I could possibly trade up to 10K if that is what takes to make trading financially worthwhile (to me "financially worthwhile" means $100 per day). No, I am NOT ready at this point in time to trade 5K or 10K. As I said, the point of this thread is to see if it is possible to make a worthy amount of money per week with preferably a 5K or less account (but up to 10K account, if needed). If it is realistically possible then I will continue on improving my price action trading skills. However, if 5K or 10K is not enough to make it worth all this time & effort, then obviously trading is a waste of time for me and many others here.

Edit: Here's a bit more info of how I plan to trade (it may help with my original thread question). I plan to have a risk/reward of 1:2 the majority of the time. In some cases it may be a bit higher, but most of the time it will be 1:2 ratio. If I feel there is not enough room to the next resistance in order to get the 1:2 ratio, then I skip the trade.
"Dream big and dare to fail." - Norman Vaughan
  • #18
  • Sep 11, 2017 6:42pm Sep 11, 2017 6:42pm
Quoting GuyBaker
{quote} You have 8 days history... It is impossible to say whether it is luck or not, come back here in 3 months and show us what you have.
i would probably think it was luck, unusually large profit, vs average, but trade duration is unusually short, 1 minutes.
this trade alone is 1/2 of the total profits on the account.

XAU/USDBuy 1,340.04
Sell 1,345.89
Sep 7, 2017 7:30pm
Sep 7, 2017 7:31pm
0.004560.2%$2,601.00naChart Not Available (https://www.forexfactory.com/#)$6,922.28$0.00
-$31.50
1 min
there is always, always another trade!!
  • #19
  • Sep 11, 2017 6:46pm Sep 11, 2017 6:46pm
I appreciate everyone's reply to this thread. I am processing all the info you guys have given me but I still am interested in seeing any other new replies in regards to the subject of this thread.
"Dream big and dare to fail." - Norman Vaughan
  • #20
  • Sep 11, 2017 6:58pm Sep 11, 2017 6:58pm
The easiest way to make a 100$ per day is to hold one profitable trade for a long time. Trading every day is very hard. 3 trades per week is more than enough. It's better to trade only high profitable/reliable trades in my opinion than finding opportunity every day.
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