Is $100,000 A Decent Capital In Trading? | Page 5 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Gutenberg money printing machine.. 100 to 1.000 to 10.000 to 100.000? 15 replies

Any decent Range Bar trading strategy threads? 3 replies

Optimization vs. decent modelling quality??? 8 replies

are there any decent brokers like this? 2 replies

How to get a decent MACD on MT4... 3 replies

Attachments: Is $100,000 A Decent Capital In Trading?
Exit Attachments

Is $100,000 A Decent Capital In Trading?

  • #81
  • May 16, 2019 1:50pm May 16, 2019 1:50pm
https://www.ai-cio.com/news/hedge-fu...t-year-decade/

https://www.bloomberg.com/news/artic...d-and-the-ugly
  • #82
  • May 16, 2019 3:14pm May 16, 2019 3:14pm
seems ok for high-risk trading.. or for display, seed for other to follow.. or for geek style living, to cover some basic expenses... IF you can make some returns...
for FUND/living it seems nothing... specially considering the risk, exposure etc..
unless you unlocked the secrets of the universe and it can give you at least 10%+ a month
Can you afford to take that chance?
  • #83
  • May 16, 2019 3:17pm May 16, 2019 3:17pm
10% per month is doable. Not always though
  • #84
  • May 16, 2019 3:24pm May 16, 2019 3:24pm
Quoting Crpa9
10% per month is doable. Not always though
yea and here lays a rabbit consistency.. that is why return-DD are connected almost like time-space...
if you can DOUBLE the account (per year..) you could live like a boss in (m)any world cities... since there are
FX TAX free places.. you would have 100k disposable income....
10% per month is even greater gold...
but the key is consistency...

OR if you can trade while still having dayjob (income of some sort)... and expose 10-50% of the account for at least that amount of return...
Can you afford to take that chance?
  • #85
  • May 16, 2019 5:39pm May 16, 2019 5:39pm
you better give this amount to any Hedge fund to work for you.
  • #86
  • May 17, 2019 2:52am May 17, 2019 2:52am
Quoting HeyYou
Hedge funds use strict rm to keep the client's happy.. hedge funds make money mostly on management fees so why scaring their clients with a 50% drawdown lol nobody would invest in a fund with 50% dd to them it's all about keeping the dd low.. and clients are happy. 100k is just not enough to trade with strict rm and make a living. this year I'm up around 5% and I risk 5%/trade.. imagine if I was risking 1% . no big deal if I was a hedge fund, I would still make money on fees. but as a retailer,it's almost impossible to make a living...
When I get my university degree in economics with minor finance I hope I can work for a big bank for a few years and save enough money to be able to trade full time until I have enough money to leave home. I make money with my small account but I think that if I had £100,000 I would have enough money to trade full time.
  • #87
  • May 17, 2019 6:51am May 17, 2019 6:51am
Quoting stt
My only comment is if you think you can consistently make 5% a month, what are you doing on FF. you beat world's best hedge fund managers by a mile (may be except jim simon). you should have no trouble raising capital to become multimillionaire in a year or 2 If you really want to sustain long term, target 10-20% per ann on average and accept that some years you will just break even.
so you are saying,that your trading strategy is same like world's best hedge funds?
So what are you doing here?This is retail forex forum.
We are using leverage from 1:20 to 500.
we are trading small amounts.
we are scalping(at least some of us)
Do you thing that hedge funds do same????
Whether you think you can, or you think you can't,you're right. H.F.
  • #88
  • Edited 8:40pm May 17, 2019 10:23am | Edited 8:40pm
Quoting Simply-Me
{quote} so you are saying,that your trading strategy is same like world's best hedge funds? So what are you doing here?This is retail forex forum. We are using leverage from 1:20 to 500. we are trading small amounts. we are scalping(at least some of us) Do you thing that hedge funds do same????
once again this thread was about "trading for living". When trading a small account, you can use leverage and not care much if you blow up. that is not trading for living.

See other comments after my original post. I hope you realize why "trading for living" is so different than trading for fun (and may be some profit) - just like you go to casino for fun..
Think : Trade : Live Life
  • #89
  • May 17, 2019 11:08am May 17, 2019 11:08am
Quoting stt
{quote} once again this thread was about "trading for living". When trading a small account, you can use leverage which and not care much if you blow up. that is not trading for living. See other comments after my original post. I hope you realize why "trading for living" is so different than trading for fun and may be some profit (just like you go to casino for fun)
leverage it's only amount of money you're suppose to deposit with broker to open position.Nothing else.
If your money management says 3% risk per trade,leverage is not important and it cannot blow your account.You should know better.
Whether you think you can, or you think you can't,you're right. H.F.
  • #90
  • May 17, 2019 1:25pm May 17, 2019 1:25pm
Quoting Nyx-
{quote} When I get my university degree in economics with minor finance I hope I can work for a big bank for a few years and save enough money to be able to trade full time until I have enough money to leave home. I make money with my small account but I think that if I had £100,000 I would have enough money to trade full time.
hey, if that's you in the picture I'm very glad to answer you.

why do you need 100k ? to risk 10% and leave the rest UNUSED in the broker's bank account ?

proper risk management doesn't mean strict. as long as you have an edge and you use stop losses any dd can be recovered.think about it
  • #91
  • May 17, 2019 1:45pm May 17, 2019 1:45pm
Good luck making on average 10,000 per month on a 10,000 account
  • #92
  • May 17, 2019 2:30pm May 17, 2019 2:30pm
Quoting Simply-Me
{quote} leverage it's only amount of money you're suppose to deposit with broker to open position.Nothing else. If your money management says 3% risk per trade,leverage is not important and it cannot blow your account.You should know better.
leverage more than 100x can cause large drawdown, which will be hard to recover from
  • #93
  • May 17, 2019 2:33pm May 17, 2019 2:33pm
Quoting Pollen
I know there will be many opinions regarding this issue. But this topic will surely help for those who are aspiring to trade for a living Considering all the expenses on a monthly basis House Loans Car Loans College Loans Food Utilities Bills (Internet, Electricity others) Kids Insurance Vacations Taxes Vices Nexflix etc... Which could sum at least 3000$ in first world countries or at least 1000$ on 3rd world countries How much is the minimum capital to cover your expenses and be able to withstand losing months. Or course Applying strategies that...
CrucialPoint says his account is 8M, but he only uses 2M trade.
  • #94
  • May 17, 2019 3:13pm May 17, 2019 3:13pm
Quoting alphadude
{quote} leverage more than 100x can cause large drawdown, which will be hard to recover from
10000,- equity. 3% risk = 300,- lets's say SL 30pips = 10,- per pip risk,usually 1 standard lot in us currency.
I'm too lazy count it exactly but in my eur account 1 lot eurusd laverage is
1st - acc -1:200 = deposit 500,-,
2nd- acc 1:500 = 200,- deposit and account with
3rd - acc 1:30 = 3300,- deposit per 1 standard lot.
I risk 3% per trade and according to my SL in pips I adjust size of my stake i eur.
So now explain to me,how the higher leverage will cause large drawdown on any of those 3 accounts???
Whether you think you can, or you think you can't,you're right. H.F.
  • #95
  • Edited 4:05pm May 17, 2019 3:35pm | Edited 4:05pm
Quoting Simply-Me
{quote} 10000,- equity. 3% risk = 300,- lets's say SL 30pips = 10,- per pip risk,usually 1 standard lot in us currency. I'm too lazy count it exactly but in my eur account 1 lot eurusd laverage is 1st - acc -1:200 = deposit 500,-, 2nd- acc 1:500 = 200,- deposit and account with 3rd - acc 1:30 = 3300,- deposit per 1 standard lot. I risk 3% per trade and according to my SL in pips I adjust size of my stake i eur. So now explain to me,how the higher leverage will cause large drawdown on any of those 3 accounts???
do some backtest on a *profitable* strategy; with various leverages.

traders uses leverage to increase profit potential; so does the risk increases; causing large volatility in the equity curve; and hence large drawdowns; and very long ones
Attached Image
  • #96
  • May 17, 2019 4:27pm May 17, 2019 4:27pm
As I already said (sorry about that)... Risk Per Trade in general is related to the frequency of trades.
  • #97
  • May 17, 2019 5:15pm May 17, 2019 5:15pm
Quoting alphadude
{quote} do some backtest on a *profitable* strategy; with various leverages. traders uses leverage to increase profit potential; so does the risk increases; causing large volatility in the equity curve; and hence large drawdowns; and very long ones {image}
gimme me something concrete.
Guns do not kill people.People kill people
Whether you think you can, or you think you can't,you're right. H.F.
  • #98
  • May 17, 2019 6:40pm May 17, 2019 6:40pm
Quoting Simply-Me
{quote} gimme me something concrete. Guns do not kill people.People kill people
visit the commercial section of FF, you will find plenty of concrete stuff. They even fund your account there for a fee.
  • #99
  • May 17, 2019 8:50pm May 17, 2019 8:50pm
Quoting Simply-Me
{quote} 10000,- equity. 3% risk = 300,- lets's say SL 30pips = 10,- per pip risk,usually 1 standard lot in us currency. I'm too lazy count it exactly but in my eur account 1 lot eurusd laverage is 1st - acc -1:200 = deposit 500,-, 2nd- acc 1:500 = 200,- deposit and account with 3rd - acc 1:30 = 3300,- deposit per 1 standard lot. I risk 3% per trade and according to my SL in pips I adjust size of my stake i eur. So now explain to me,how the higher leverage will cause large drawdown on any of those 3 accounts???
you originally said retail trader can use high leverage to make higher return..

tell me how trading this way will let you make higher return. In all these accounts you will make same return in $ terms. now if in higher leverage account you take bigger position then you will take higher risk and will increase your chance to blow up ...

availability of high leverage doesn't automatically let you make more money without taking reckless risk. check kelly's criteria - thats mathematical optimal way to maximize the $ pnl.. it is directly related to expectancy of the strategy and it tells you what leverage should be used for a given expectancy to keep the risk of blowout contained.

if you lever more, the risk of blowout increases.. and when you are trading for living, you can't afford blowout. once again there is no free lunch..
Think : Trade : Live Life
  • #100
  • May 18, 2019 1:03am May 18, 2019 1:03am
Quoting Sajidhelp
{quote} at the end of quarter you will have (39 winners & 21 losers) which means 65% win rate and you should withdraw your profits every quarter (not every month)
Quoting Hutch
{quote} Your statement is not entirely correct. A trader with good money management and with a 40% win rate might be more profitable than a trader that has a 65% win rate composed of small gains and large losses because of his poor money management.


I only made a few trades last month producing a win rate of 40%. This is the proof that with good money management a 40% win rate is enough to be profitable.
I hope that you agree with me that a 7% equity increase with a 40% win rate is satisfactory
Attached Image (click to enlarge)
Click to Enlarge Name: April.png Size: 41 KB
0 traders viewing now