How big of an account needed for $3k/mo? | Forex Factory

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How big of an account needed for $3k/mo?

  • #1
  • First Post: Jan 24, 2024 12:27pm Jan 24, 2024 12:27pm
At this point, I'm profitable for most months, but trading was never my main income source. Recently I lost my job in marketing, but more importantly, I lost interest in that career a long time ago and would like to focus more on trading. Just to make it clear, I'm not a newbie who thinks trading is a shortcut to riches. Actually, I'm not interested in being rich and owning luxury cars and watches. I despise that lifestyle. I just want to make $3k a month on average.

I'm curious, how much do I need to have in my trading account to make that amount? Ideally, I'd like to hear realistic opinions, from people that are making that $3k or more. IMO, it's around $30k or so.

Another important question, how safe is holding $30k in an account with a broker? I'm talking about those most popular brokers, not shady ones. I was always afraid to deposit more than a few thousand because I didn't trust them.

My trading style:

I consider myself a price action trader, classical patterns trader, and breakout trader.

Time frames: I use 1W, 1D for general trend and 4h, 1h 15m to execute trades.

If a trade quickly advances in my direction, and starts looking overextended, I'd usually take profits before retracement. Such trades can last a few hours. I often hold trades overnight and for a few days. So, we can say I'm a swing trader who's looking for smaller swings (usually less than 100 pips).
  • #2
  • Jan 24, 2024 1:30pm Jan 24, 2024 1:30pm
[quote=Giucca;14730808]

In this case i would recommend copy trading.
You can become a copy trading signal provider and other traders can copy your trades.
You will receive a performance fee on your copy traders profits.
This way you maximize your trading and you also dont have to have big trading capital.

Lets say you have a 1.000$ Account, you make about 5% gain a month.
Lets say 200x copy traders choose to copy your trades, the average copy trader has 1.000$ in his Account.
Meaning in total 200.000$ are copying your trades, if you now do 5% a month, thats 10.000$ that your copy trades are making total, from this you will receive a 30% performance fee, which would be 3.000$
So you your self trade 1.000$ and you make 5% gain a month (50$), but through a large quantity of copy traders you can maximize your trading and receive Performance fees.


If you dont want to do copy trading and you just want to know a number, i would say from 80.000$ you can realisticly make 36k a year (If you truely are a Consitent trader)
1k to 100k Copy Trading All Time Return: 367.9%
  • #3
  • Jan 24, 2024 1:51pm Jan 24, 2024 1:51pm
Prop firms is also a option, pass their challenge and you have capital. But u have to be profitable and choose a trustworthy prop firm.
  • #4
  • Jan 24, 2024 1:55pm Jan 24, 2024 1:55pm
All depends on your strat and how often it presents itself on the charts.. If it shows once a week-- your trades need to be decent sized.. If it shows 30x a day-- then you can have smaller trades--less risk-- less margin used..

I feel like when people start out with "i need to make x$ per month" they are looking about it the wrong way... To me-- Id look at how and what you trade-- your w/l percentage.. You find what works for you--- then you trade accordingly to get to your goal..

example.. your trading usd pairs.. you win 70% of the time.. Your strat shows you 10 entries a day.. So you net win on 4 trades per day... 4 x 5(days) = 20 net wins a week / $750 (your weekly goal) = $37.50 per trade..... How many pips does your strat net? 10 pips? So each pip has to equal 3.75$ which = .37 lot size.. If your strat nets 20 pips-- then your lotsize will be half of the 10 pip size.. so .17 of a lot.. ect.. So half the risk as a 10 pip win.. Which means your bankroll can be half of what is needed.. For me-- id figure out what your win size is in pips with win amount of trades the x 100 and id feel ok with that size of bankroll..


Keep in mind that R/R plays a part in all of this too.. But im just using a 1-1 R/R example here..
so you win 70% with 10 trades per day and 10 pip win size = 4 net wins @ 10pips =40 pips per day net/200 pips per week net
goal = 3k a month which = 750 per week/pips(200) = 3.75 per pip (.37 lotsize) .
3.75 x 10 pip win size = 37.50 per trade x 100 so a bankroll of 4k should work fine..

Of course the bigger the BankRoll-- then the longer you can sustain a bad run of trades.. Though-- KNOW YOUR MATH---and you will be fine..

Whenever i code stuff up for people .. My list of questioins is -- how many trades per week? win loss %? How far back tested have you done? How far have you forward tested? Once you truly know your math-- then you can just fill in the blanks to get your result..

Hope this helps... Get your math inline-- and the rest will fall into place..
  • #5
  • Jan 24, 2024 1:59pm Jan 24, 2024 1:59pm
Quoting Giucca
At this point, I'm profitable for most months, but trading was never my main income source. Recently I lost my job in marketing, but more importantly, I lost interest in that career a long time ago and would like to focus more on trading. Just to make it clear, I'm not a newbie who thinks trading is a shortcut to riches. Actually, I'm not interested in being rich and owning luxury cars and watches. I despise that lifestyle. I just want to make $3k a month on average. I'm curious, how much do I need to have in my trading account to make that amount?...
it really depends on your profit factor and drow-down management. But i would say somewhat around 30k to 40k if you are like most traders not risking too much. But even you can make it from 10k if you risk a little more(of course drow-down would be higher, I said at the first)
Trend following
  • #6
  • Jan 24, 2024 2:10pm Jan 24, 2024 2:10pm
Quoting mehantrader
{quote} it really depends on your profit factor and drow-down management. But i would say somewhat around 30k to 40k if you are like most traders not risking too much. But even you can make it from 10k if you risk a little more(of course drow-down would be higher, I said at the first)
Your basicly saying making 10% - 30% a month consitently to reach the 3k/month goal.
Its a little unrealistic, ofcurse its possible but hard to actually hit consitently in a safe way.
Since in this example its about making a living, there should definetly be a higher ammount of capital to reach those gains consitently with less risk.
1k to 100k Copy Trading All Time Return: 367.9%
  • #7
  • Jan 25, 2024 5:38am Jan 25, 2024 5:38am
Quoting Giucca
At this point, I'm profitable for most months, but trading was never my main income source. Recently I lost my job in marketing, but more importantly, I lost interest in that career a long time ago and would like to focus more on trading. Just to make it clear, I'm not a newbie who thinks trading is a shortcut to riches. Actually, I'm not interested in being rich and owning luxury cars and watches. I despise that lifestyle. I just want to make $3k a month on average. I'm curious, how much do I need to have in my trading account to make that amount?...
Hi Giucca

You would probably need to trade 3 separate $20K account with 3 different brokers to put $3K a month out of your trading.
But I would use 3 separate strategy's between them, one would be swing trading, one would be scalping M5, one would be trading the Day Chart.

This way one of the accounts is likely to do well every month and earn you $3K - you need to think multiple strategy's not multiple funds.
Trading thin liquidity at the boundary of the charts
  • #8
  • Jan 25, 2024 12:14pm Jan 25, 2024 12:14pm
I think 10% or more should be your goal , keeping this MM in mind your desired equity should be arround 30000 to earn 3k permonth.

And yes you should not keep all amount with single broker , use multiple brokers.
JustTradeNoWorries Return Today: na
  • #9
  • Jan 25, 2024 6:48pm Jan 25, 2024 6:48pm
Quoting Giucca
At this point, I'm profitable for most months, but trading was never my main income source. Recently I lost my job in marketing, but more importantly, I lost interest in that career a long time ago and would like to focus more on trading. Just to make it clear, I'm not a newbie who thinks trading is a shortcut to riches. Actually, I'm not interested in being rich and owning luxury cars and watches. I despise that lifestyle. I just want to make $3k a month on average. I'm curious, how much do I need to have in my trading account to make that amount?...
hi @Giucca

There is really a lot to consider besides how much to deposit in your broker account.

20 years ago I lost my trading deposit plus open positions once when one of my brokers went Chapter 11.

My experience tells me to deposit only the margin your required to trade in any one account with a excess 50% just in case to catch the setup for the big one.

Post#7 RickM is right. I have more than one trading accounts with one broker and different brokers too.

These allow me to trade an overall system strategy with different trading strategies in each account.
Best to have at least 3 trading strategies, each for different market type conditions.
An overall system trading strategy would have strategy A, strategy B and strategy C in 3 different accounts.
At the end of the trading cycle, you consolidate all 3 accounts and analyze the performance of each strategy and more important overall P&L of your business. You can create your own CashFlow model from your strategies &systems

For example:
Strategy A - is for day-trading intraday
Strategy B - is for short-swing trading which hold trades during the Week trading the 4Hr charts
Strategy C - medium to longer term swing trades on Daily / Weekly charts where trades can run for several weeks.


Get some ideas, from this youtube video on Lotto and Insurance models and create a new model like what I have done as my CashFlow model.


https://youtu.be/ruz_KVpMFd4

...
Honesty is a very expensive gift. You wont find it in cheap people.WBuffett
  • #10
  • Jan 26, 2024 1:20pm Jan 26, 2024 1:20pm
dont forget an old prop firm will give you 100k with 500$ , risk vs reaward , not worried hard earn 30k fly by wire
  • #11
  • Feb 1, 2024 10:29pm Feb 1, 2024 10:29pm
Quoting Giucca
At this point, I'm profitable for most months, but trading was never my main income source. Recently I lost my job in marketing, but more importantly, I lost interest in that career a long time ago and would like to focus more on trading. Just to make it clear, I'm not a newbie who thinks trading is a shortcut to riches. Actually, I'm not interested in being rich and owning luxury cars and watches. I despise that lifestyle. I just want to make $3k a month on average. I'm curious, how much do I need to have in my trading account to make that amount?...
Hello!
This is how I get an average of 10% profit per month.
I have kept and keep over $100,000 with well-known brokers.
www.myfxbook.com/members/AMBASSADORFX
  • #12
  • Last Post: Edited Feb 3, 2024 8:07am Feb 2, 2024 9:15am | Edited Feb 3, 2024 8:07am
Quoting Giucca
I'm curious, how much do I need to have in my trading account to make that amount? Ideally, I'd like to hear realistic opinions, from people that are making that $3k or more. .
it is easy to make 0.25% daily, so if you have 20 trading days per month it is 5% monthly. So if 3000 is 5%, then you need at least 60000$.
Observer effect
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