$1K into $1M Journey

Hello,

My name is Chase and I've been trading currency for about 3 years. I want to try something seemingly impossible but very possible to achieve; turning $1000 into $1,000,000 in 2 years. I have been trying this type of return for the past 3 months and it's been working out really well. I really believe that I can keep it up for two years so that's why I want to open this thread to document my journey, just in case I really succeeded.

I'm doing this because I'm bored sitting in front of my computer all day. It's also because I want to find out if it's really possible. I think it's awesome if this works out. In this thread I will keep track of most of the trades that I will be making live. I will also be posting screenshots of the coresponding statement daily as hard proof.


How is it possible?

Risk/Reward Ratio: 1 (or about 1)
Risk on each trade: 1% to 3% (of newly compounded daily balance)
Win Ratio: 60% (3 out of 5)

As you can see, if a system with a rr ratio of 1, meaning risk and reward are about the same, all I need is to win three out of every five trades or 60% daily, then I would gain about 1% to 3% each day.

A starting capital of $1000 with 1.4% net gain daily compounding daily for 500 trading days (two years) = $1,043,666.09

Risk of ruin (risk of blowing up my account) = miminal as long as I don't incur a string of too many consecutive losses in a row, which hasn't happened yet. Keep in mind that the maximum risk on each trade is only 3% so there will be no large drawdowns or big losses.



The plan:

For 500 trading days in 2 year, $1000 X 1.4% compounding daily = $1,043,666.09


The system:

Technicals:
I use most of the very basic indicators such as the 50ema, 100sma, 5sma, fibonacci, trendlines, pivots, daily/weekly/monthly S/R

Fundamentals:
I do analyze only the major news such as interest rates announcement, retail sales, GDP, and especially the speeches of high ranked officials. I combine both technicals and fundamentals in making my trade decision.





Note: Compounding daily is incredibly aggressive. I do not recommend trying this unless you know what you're getting into. Also I am only risking $1000 through all this. If I blew up the account at anytime, I would still only lose about $1000.

Starting balance for 10/26/08: $1000
Goal for 10/26/09: $31,321.29
Goal for 10/26/10: $1,000,000


Goal for 10/31/08 (week 1): $1071.99

Daily Updates:

Wins: 8
Losses: 4
Percentage gain: 2.7%
New Daily Compounded Balance: $1027.48

The key to my system really is to have a hard stop in place. If you have a stop in place, you wouldn't even have to worry even if there's 300 pips spike against you due to some surprised news. If you can contain your losses, you can always make up for your losses later with one or two winning trades. Most of the time, I leave my tp open. The advantage of this is if that 300 pips spike was in my favor, assuming 40 pips equal 1%, I've just made 7.5% still risking only 1%-3%.

Hey Best of luck with your 2 year goal there, Buddy. It can be done, as long as you stick to the plan, don't get greedy, and dont get to shaking in your boots once you've got 100K in the account.. most people aren't psychologically prepared to be in charge of that much money, and thus they create situations why they never have it. So prepare your mind, along with your account balance.

Cheers,

Nothing is impposible..good luck bro..

Thanks for the well wishes. I'm getting a short signal on GU. Shorted at 1.5448, sl 1598

I'm out at .5417 for 1% gain.

nice...

Daily Updates: 10/28/08

Percentage gain: 1.5% (daily target achieved)
New Daily Compounded Balance: $1042.88

I think instead of having to post my statement everyday, I will only post it once the weekly target is achieved or the end of the week whichever comes first.

So far day 2 of 500 is going perfectly according to plan...

Good luck brother. All looking good.

Short signal on Gbp/Jpy.

short at 158.26
sl 159

That was fast. Stopped out for -2%.

Hehe now this is ambitious but 1% per day should be possible. Will you tell something about your system, or even post charts?

The system that I use is discussed here in James16 thread http://www.forexfactory.com/showthread.php?t=2331 . It's nothing fancy but very effective as long as you use good money management. A sound money management system is key because as long as you keep your risk/reward ratio respectable, a 60% hit rate will allow you to earn "on average" a few percentages a day. Just keep telling yourself you only need to win 3 out of every 5 trades and use a hard stop every time and never let any losses run. Profits, however, can be left running as soon as you move sl to break even.

LOL - I guess that you're a fan of Larry Williams. Its now more than 20 years since he turned a $10K account into $1.1M in a year, trading futures.

Actually he says that he remembers that as the year that he lost $1.5M as he ran the account up to $2.6M before the draw down! - but then he does like to tell a good story!

So, given the higher leverage available in FX, it is possible, although rather difficult....good luck....http://www.forexfactory.com/images/icons/icon14.gif

Week 1 updates: 10/26/08-10/31/08

Week 1 beginning balance: $1000
Week 1 ending balance: $1297.24

The starting balance for the week was $1000 and the ending balance was $1297.24 which surpasses the initial target of $1071.99. It actually surpasses the target for week 3 so next week I would be looking at target for week 4 and beyond . I just think it's always better to be ahead of schedule rather than behind. I know there will be slow weeks ahead so it's always good to have a cushion.

Weekly target:

Week 1: $1071.99
Week 2: $1149.16
Week 3: $1231.88
Week 4: $1320.56
Week 5: $1415.63
Week 6: $1517.53
Week 7: $1626.78
Week 8: $1743.89



Note: while the last few weeks have been unusually volatile which presents many trading opportunities. I fully expect the volatility to subside in the future which will provide less trading opportunity hence gains will be significantly less.

REMINDER: NEXT TUESDAY IS ELECTION DAY!!!

*** MAKE YOUR VOTE COUNT AND VOTE FOR MCCAIN ***

Obama will raise capital gains tax whereas McCain will lower it so the difference in capital gains tax you will be paying for the next 4-8 years will be quite significant. If you are a trader especially those that trade full time or trade big (institutional traders), this issue will greatly affect you.

If you intend to vote for Obama, it's better to stay at home, trade and make money.

Good luck sixth sense.. with a very good money management,
I know someday you will get there.

Hijackxx

Hi,

Just an update on my progress. The market has been relatively calm the last couple of days due to the election and the uncertainty in the new president elect.

GU looks very bearish. If you take a look at the 4H chart I attached, it looks like GU is trying very hard to break below the yellow trendline. I think that once it is broken, we would see 1.5277 tested and possibly broken.

As for my million dollar mission, I'm still on track...actually still ahead of schedule so I'm kind of taking it slow. I already knew that we would have some slow weeks after the kind of month october was.

Starting balance: $1297.24
Ending balance: $1435.73 (+10.7%)

I've done a lot less trading this week but the trades were quality so I still was able to keep up with the growth target. After only two weeks and I'm almost up 50%. I'm on pace to doubling my account in a month. So far there have been no hiccups in the system.