When stops the possibility of scaling profits? | Forex Factory

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When stops the possibility of scaling profits?

  • #1
  • First Post: May 4, 2010 10:50am May 4, 2010 10:50am
Hello,

if someone can make 120 $ out of 100 $, he can also make 12.000 $ out of 10.000 $. Wouldn't that mean, that all traders, who are consistently profitable, are earlier or later millionaires? I know that not everyone who trades profitable is a millionaire, actually not many are (I guess), so where is the error in my thinking?

Is it, that there comes a point that you stop beeing profitable because of higher emotions that go along with the bigger positions, or it that you move the market to much with your position, so can't maintain from a certain Account size? If so, what is this size?

Best,
Antoni
  • #2
  • May 4, 2010 8:12pm May 4, 2010 8:12pm
If you are profitable in small actions, you will be profitable in
big actions.
Welcome to the forum.
The more experience the closer to the reality
  • #3
  • May 5, 2010 12:25am May 5, 2010 12:25am
Quoting Antoni91
Hello,

if someone can make 120 $ out of 100 $, he can also make 12.000 $ out of 10.000 $. Wouldn't that mean, that all traders, who are consistently profitable, are earlier or later millionaires? I know that not everyone who trades profitable is a millionaire, actually not many are (I guess), so where is the error in my thinking?

Is it, that there comes a point that you stop beeing profitable because of higher emotions that go along with the bigger positions, or it that you move the market to much with your position, so can't maintain from a certain...
Yes, you are right. Some people have several brokers to beat this problem.
Gone to a better place
  • #4
  • May 5, 2010 1:33am May 5, 2010 1:33am
Quoting smikester
Yes, you are right. Some people have several brokers to beat this problem.
There is a saying, "Don't put all your eggs in one basket"
  • #5
  • May 5, 2010 2:29am May 5, 2010 2:29am
Quoting Antoni91
Hello,

if someone can make 120 $ out of 100 $, he can also make 12.000 $ out of 10.000 $. Wouldn't that mean, that all traders, who are consistently profitable, are earlier or later millionaires? I know that not everyone who trades profitable is a millionaire, actually not many are (I guess), so where is the error in my thinking?

Is it, that there comes a point that you stop beeing profitable because of higher emotions that go along with the bigger positions, or it that you move the market to much with your position, so can't maintain from a certain...
Making 120$ out of 100$ seems to be for fun without risk because you can't make a living from that... at some point you'll trade for a living and that means, even when you have 40.000$ in your account you will generate 8.000$ (perhaps a month?!) where you have to pay taxes, your bills and especially your wife.... so your 48.000€ decrease to maybe 42.000€ for a new month to trade with... of course you will be a millionaire but not soon.
  • #6
  • May 5, 2010 3:17am May 5, 2010 3:17am
Quoting nightyhawk
Making 120$ out of 100$ seems to be for fun without risk because you can't make a living from that... at some point you'll trade for a living and that means, even when you have 40.000$ in your account you will generate 8.000$ (perhaps a month?!) where you have to pay taxes, your bills and especially your wife.... so your 48.000€ decrease to maybe 42.000€ for a new month to trade with... of course you will be a millionaire but not soon.
This is very true, also there will be months when you make less, so you will need to account for that with the good months.
  • #7
  • May 5, 2010 2:36pm May 5, 2010 2:36pm
Ok, so the main reason is that most traders who are that successful trade for a living and need therefore to withdrawal money regularly?

Can you share with me what is the typical account size when you need to use multiple brokers or when you don't get the same rates as with a let's say 10,000 USD order?

Best,
Antoni
  • #8
  • May 5, 2010 4:46pm May 5, 2010 4:46pm
Quoting Ivan
If you are profitable in small actions, you will be profitable in
big actions.
Welcome to the forum.
As Ivan said. Just because your equity is up doesn't mean your trading goes to hell! If anything, you should be at the top of you game when your equity grows because it didn't grow by itself ... you the trader and your skills got it there. So why fall apart now?
  • #9
  • Last Post: May 5, 2010 4:51pm May 5, 2010 4:51pm
Quoting Antoni91
Ok, so the main reason is that most traders who are that successful trade for a living and need therefore to withdrawal money regularly?

Can you share with me what is the typical account size when you need to use multiple brokers or when you don't get the same rates as with a let's say 10,000 USD order?

Best,
Antoni
10,000 is a good start but is still considered small potatoes to brokers. The average broker will start rolling out the red carpet for anything 100,000 or more. But with 10,00-90,000 doesn't hurt to looking into regulated industries, such as FX Futures, FX focused ETF's, and ECN brokers/Interactive Brokers/Currenex Brokers in addition to trading a retail forex.
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