2 Million In 2 Years With $1000 Start Up- Its Possible

SEE POST # 13 REVISION!




FOREX SCALP TRADING
1 pip Spreads and 100:1 Margin


BEGINNING PHASE


$1000 Capital

$50,000 buying power

$10,000 = 1 lot = $1

$40,000 = 4 lots = $4

5 pips with 4 lots = $20

5 pip stop loss = $20 risk

$20 = 2% of account

6 pip Stop Limit = 5 pip/$20 per win

20 trades/day with 11 wins = $20

$20 = 2% per day or 8% per Week


MAINTENANCE PHASE

(Increase your lot sizes as your capital increases
To maintain the 2% risk)

$1000 start balance with 8% per week increase =

Within 52 weeks your account over $40,000

Within 2 years you would have over $2,000,000


This seems possible and probabbly the reason Forex is so hot. But who can consistently see a 11-9 win/loss ration?


That man will become rich with Forex Trading!



Mike Lewthwaite

please tell me this isn't the way you trade.

This is a demonstration when running the numbers what is possible in forex.

No this is not the way I trade.

You can run the numbers with longer trades of 20 pip stops and they will come out the same.

This was just a post to show the possibility of what could occur (even with a meager starting capital) if you could just win a little more than you lost.


Mike

You could have turned $1000 into $1,000,000 in 2.5 months trading the NZD/JPY alone.

Search for "Dion's Pyramid."

Actually this is just an example of how powerful forex is. I don't claim this to be a realistic return, as you'd have to be lucky as hell to call the top.

I think kharvell is using a similar strategy w/ his "pip farming" thread.

what is the point of posting such numbers besides showing us that you are capable of elementary school math?

your absolutely mistaken with 5 pip stop loss, no way in hell you are going to make that money. you will get stopped out each time.

this is useless without screenshots of backtesting and fresh data performance results. and in this case, no you will not be able to make 2 million dollars within a year like this. it is possible with other strategies but definitely not with the one the thread starter posted.

You're not figuring in spread. :-/

Do 1 lot with 25 s/l at least :-/

All of this is very possible; in fact I've done it several times................

Done what? Fallen down laughing after telling a tall tale?

i think hes being sarcastic. chill.

gotta admit Venture Pip makes the most hilarious threads of all i've seen. thanks for bringing comic relief after hours of trading!

THIS YEAR!

Actually, this is true.

He came over to see me this weekend. (Flew his Gulfstream over.)

We went to Hyde Park, where our dinner cost only 20 pips. He gave me a ride in his nice Ferrari, and we went out for drinks. After drinking way too much, I got stupid and talked him into letting me drive.

But as I cannot handle $500 a bottle champagne like I used too, I screwed up and ran the damn car into his jet.

I was amazed when he just said, "Damn, that's going to take at least 3 months to replace."

clockwork is just being modest; he has left out a few important details from this story:

His Forex successes allow him to garage my Ferrari at his beautifully restored castle in the country. But when I fly in to Heathrow, he usually arranges for me to be collected from the airport in his private limousine, making the trip to his in-town luxury flat a pleasant ride indeed.

And as for the car and jet incident................well, let's just say the phone call to his personal banker who arrived shortly thereafter with a briefcase full of cash, took the edge off that little mishap. Besides, what's a little sheetmetal and plastic between trading friends who both made their fortune the old fashioned way: trading $1000 to 2 million in 2 years. Cheers mate!

I realize that I was not far off 1 year ago. But I would change it a little.


Starting Capital:

$1000

Oanda 50:1 Leverage:

50,000 buying power



1. Risk 1.5 percent / trade

2. Averaging 5-10 trades / day

3. Increase account size by 1.5% / day


Starting with Oanda this would mean trading 30,000 EUR/USD (just possible with $1000 USD.)

Each pip is worth $3.

$15 is 1.5% of account.

5 pips average per day needed.

5 pip hard stop ($3 x 5 = $15 = 1.5 % risk)

*Get out of most bad trades at a 2-3 pip loss*


Average 2-3 pip loss per loosing trade.

Average 4-10 pips per winning trade.


With this scenario you can afford to be wrong a couple times before you are right and still end up with +5 pips at the end of your session.

Others increase their stop loss and thereby increase theie # of winning trades.


Many scalpers are easily averaging 5 pips / day. With this scenario one can be up to 1.2 mill in 2 years.

This is not off the wall as some have posted below, but for a scalper is a reasonable goal.

A scalper can achieve this with low draw downs and only 1.5% risk / trade.



Lets take an example of why this is achievable:


Trader A averages 5%+ / month for him and his clients.

This trader using proper money management and a minimum of 2% risk per trade.

He is a swing/position trader and has a winning percentage of about 70% of all his trades.

He takes approximately 15 trades / month and it takes him 15 trades to make this profit.

He makes his 5% / month and is very successful.


Now here comes the scalper, Trader B

Trader B also has proper money management, risks max of 2% / trade, wins 70% of trades.

BUT one thing is different. Instead of making 15 trades / month he makes 120 trades / month.

So the scalper is making 8 times as many trades / month but with the same amount of profit/loss / trade.

So he also makes 5% for every 15 trades he takes, but since he takes 120 trades / month he makes 40% profit per month.

He is no different then the position trader in regards to his results per trade, but only in the amount of trades he takes.


This is simple math and all should agree. The only point of disagreement would be this...

Can a scalper do just as well PER TRADE as a position trader? Can he average the same results PER TRADE or not?

If he can, or even if he can come close, then the above figures stand solid.


This is why if one wants the trading style with the possibility of the biggest returns then he will resort to very short term trading or SCALPING.


Mike

great theoretical.... but now back in the real world

any system makes a fortune with enough green pips. where are the green pips coming from? without them, all this analysis is a waste of time.

I think everyone here means to say that we are all well aware of the power of compounding returns.

AMEN

Its so fun getting you guys all riled up.

lol

P.S. this is in the ROOKIE Q&A THREAD

So... just how far has this gotten you? It looks like it has been about 11 months since you first posted this. How you found your edge or are you still playing with excel spreadsheets showing you HOW its possible but not HOW to do it? Every rookie has made one, but eventually you're going to have to bring it, not sing it.

I fail to see a question...I only see you preaching about the wonderful goodness of trading.

The rookie q&a subforum already has enough "10 pips a day", "1 pip a day", "how i made bajillion $$$", etc....For every legit question, there's 10 BS threads.

Since this forum if filled with generous kind hearted folk who dont normally just start criticizing fellow posters...

To answer,

This (the developement of my system including plan for returns) has gotten me very far.

It has allowed me to focus all my energies in the direction which will bring the greatest rewards.

I am not one to jump into things without thorough planning so I have blown demo accounts instead of real ones.

If you have seen some of my posts you know that I have gone through several systems and have finally arrived at the conclusion that scalping based on PA only is the method which works best for me.

You can find more info about this on the Chronicles of the Price Action Scalpers thread. I do believe that I have found my edge but am now just beginning to make it razor sharp.

Becoming successful in Currency trading is not an overnight thing. You act as if 1 year after learning about forex I should be raking it in.

You are correct, some day I must bring it. And bring it I will some day. I am not impulsive neither am I impatient. I am a brick layer. 1 by 1 and this building is sure to be built.

Many of us will fail, some will go on to be triumphant and realize our dreams.


May you be one of the triumphant!


Sincerely,

Mike Lewthwaite