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The quest to be a Millionaire

  • Post #1
  • Quote
  • First Post: Oct 20, 2005 11:43am Oct 20, 2005 11:43am
I've read several posts here about how it you are making constant 10 pips a day, you can be a millionaire in 2 years. Someone even said that if there is a constant profit of one pip a day, one can become a millionaire.

I did the math and don't realize how that is possible. Say you trade one lot, $10 a pip, 10 pips a day will make it $100 a day. That's 500 a week, $2000 a month, $24,000 a year.

Someone please explain it to me lol.
~If you fail to plan, you plan to fail~
You need to consider compounding man, that is as your equity grows, your lot size is going to grow and so will your profits (And losses as well).

You might need to adjust the lot size being traded every 3 months or so. Whatever.

Thanks,

Nader
1 lot can be USD 1 million, USD 100'000 or USD10.- depending on your broker firm and types of account. Certain brokers do not use lots. Just an ouright sum. Amount of more than USD20 million, I need to place it through telephone directly with my broker.

Hope someone can give abetter explaination.
Nader, that actually makes a lot of sense. I haven't thought about it this way
~If you fail to plan, you plan to fail~
Quoting gcl915
I've read several posts here about how it you are making constant 10 pips a day, you can be a millionaire in 2 years. Someone even said that if there is a constant profit of one pip a day, one can become a millionaire.

I did the math and don't realize how that is possible. Say you trade one lot, $10 a pip, 10 pips a day will make it $100 a day. That's 500 a week, $2000 a month, $24,000 a year.

Someone please explain it to me lol.
if you want to be a millionaire, you are in the right game. but your not going to do it by focusing on X pips per day. thats a fool's strategy, and it seems to creep up into many newbie's thinking.

the first problem with the X pip per day strategies is that you cant win every day. you will have losing trades, losing days, losing weeks, losing months, and god forbid, losing years.

as a trader you should just focus on good probability trades. in the end you hope your good trades outwieght your bad ones.

another thing, you should forget pips altogether. if you have a trade that wins 10 pips when trading 10 lots, thats a lot more $$$ than if you have a win of 20 pips when trading 3 lots. position sizing will affect your bank roll a lot more than pips will.
Relax and be happy.
Quoting merlin
if you want to be a millionaire, you are in the right game. but your not going to do it by focusing on X pips per day. thats a fool's strategy, and it seems to creep up into many newbie's thinking.

the first problem with the X pip per day strategies is that you cant win every day. you will have losing trades, losing days, losing weeks, losing months, and god forbid, losing years.

as a trader you should just focus on good probability trades. in the end you hope your good trades outwieght your bad ones.

another thing, you should forget pips altogether. if you have a trade that wins 10 pips when trading 10 lots, thats a lot more $$$ than if you have a win of 20 pips when trading 3 lots. position sizing will affect your bank roll a lot more than pips will.
I don't think there is anyting wrong with having a pips or $$$ daily goal, where you stop trading for the day when you reach it, as long as you also have a pip or $$$ loss limit, where you quit for the day if you hit it. Just my opinion. Also depends on the type of trader you are.

JohnFX
Quoting merlin
if you want to be a millionaire, you are in the right game. but your not going to do it by focusing on X pips per day. thats a fool's strategy, and it seems to creep up into many newbie's thinking.

the first problem with the X pip per day strategies is that you cant win every day. you will have losing trades, losing days, losing weeks, losing months, and god forbid, losing years.

as a trader you should just focus on good probability trades. in the end you hope your good trades outwieght your bad ones.

another thing, you should forget pips altogether. if you have a trade that wins 10 pips when trading 10 lots, thats a lot more $$$ than if you have a win of 20 pips when trading 3 lots. position sizing will affect your bank roll a lot more than pips will.
Keep listening to the wise words from the Magic Man

Thanks,

Nader
Quoting JohnFX
I don't think there is anyting wrong with having a pips or $$$ daily goal, where you stop trading for the day when you reach it, as long as you also have a pip or $$$ loss limit, where you quit for the day if you hit it. Just my opinion. Also depends on the type of trader you are.

JohnFX
What about having a fixed percentage instead of $$$ or pips??? Sounds more logic....

For example, I am targeting to make a +54% return over my equity per year. To do this, I need to adjust all other factors to get the target. Factors include, but not limited to:

1- Number of Trading Models, Strategies or Systems to be used
2- Number of Pairs to be traded
3- Max allowable loss per trade
4- Position size and leverage
5- Profit Targets (Based on every strategy of course)
6- Draw Downs against equity

Some factors need to be reviewed every 3 months or every 6 months, and some of them are adjusted automatically after every trade, either it was a winner or a loser.

Thanks,

Nader
I'll be happy when I'm a thousandaire! ! If I ever reach millionaire, I'm throwin' a party and everyone at FF is invited! !
Because helping each other is a good thing. ;)
Quoting howtotradeforex
I'll be happy when I'm a thousandaire! ! If I ever reach millionaire, I'm throwin' a party and everyone at FF is invited! !
Thats true! I would be very happy too!
~If you fail to plan, you plan to fail~
Quoting gcl915
Thats true! I would be very happy too!
Most of these Excel driven newbies dream about reaching certain number of pips in certain days then increase pip value and compound. In theory these are all very possible. BUT, in practical life it is rather hard, psychologically.

I've created a compounding table where you can make $21 million US in 1 year by making 10,400 pips in that year (starting capital 4 figure!). Yes sounds crazy and childish but just wanted to see in theory if that is possible or not.

Well it is possible, in theory. But don't try to pick X number of pips per day or per week. Use the compounding table as a guide when to increase pip value after reaching certain number of pips and trade with the market.

Compounding is the key.
when we win, we can use the profit to get more profit, and if indeed we win we can waste it to even get more ..... but when we lose, it just doesn't work nicely
so when we target few% per time frame, and get more than we targeted, keep the target, and waste the rest... still learning to do it anyway....

ps: it feeeeeel gooooood and pretty save
http://www.forexfactory.com/showthread.php?t=44083
I wish making 10 pips a day was as easy as it sounded
How about just focusing on making high probability trades according to your strategy?

If you discipline yourself to do only that, you will become a very profitable and well respected trader.

-fxtradr
Peace and happiness, Fxtradr
Quoting gcl915
I've read several posts here about how it you are making constant 10 pips a day, you can be a millionaire in 2 years. Someone even said that if there is a constant profit of one pip a day, one can become a millionaire.

I did the math and don't realize how that is possible. Say you trade one lot, $10 a pip, 10 pips a day will make it $100 a day. That's 500 a week, $2000 a month, $24,000 a year.

Someone please explain it to me lol.


The journey has begun


Regards
Seqds
  • Post #17
  • Quote
  • Last Post: Oct 30, 2007 1:33pm Oct 30, 2007 1:33pm
Quoting howtotradeforex
I'll be happy when I'm a thousandaire! ! If I ever reach millionaire, I'm throwin' a party and everyone at FF is invited! !

how about taking us all to Tahiti for the party..
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