$1000 to $1,000,000,000 in 4 years

The Big Picture

I wanted to share this information with the new traders, because they often forget about the long term picture and focus on huge gains at day one. You do not need 100 pip swing trades or huge gains everyday.

All you need is 20 pips consistently. So, yes some days you may make more and some days you may make less, but it order for you to become a full time trader, you must make 100 pips a week for years to come... This means that you do not need to risk your accounts, by trading news, or market opens. All you need is 1 good trade a day. Thats it..
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This is not some far fetched dream, nor is this impossible. We are not getting greedy, and we are not shooting for the stars.
We have realistic goals and we can achieve them. Yes you will need a solid strategy and discipline to follow that strategy day in and day out. But it is all very possible.
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This concept of 20 pips a day has been written on my BIG white Board so many times that ""How can I forget this simple goal.""

However, when I sit down to trade. I forget about that my goal is to ONLY make a few good trades and earn my 20 pips. And this is what has been the leading factor of my failure for years. Honestly, this is the main reason.

We all feel that, We can achieve more, so lets put on another trade.... well in the end,,, you should have been happy with that 20 pip gain. Because after trading for a few years, that 20 pips a day goal, would have turned into a nice portfolio. But greed often gets in the way, and we continue to lose our money.
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So new and old traders... Print this out. Hang it on the wall. and remember, ""You don't need all the opportunities, you only need a few that can earn you 20 pips a day"""
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we should all SEE THE BIG PICTURE
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This is for investors as well... Stop trying to find traders that can double your account every month. Find a trader that is consistently making pips... In the long run, you will have grown your account much further than trying to find the best trader on the block
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Compounding Lot Sizes When Your Equity grows.

This technique can grow your account astronomically in a short amount of time. The only way to increase the outcome of success with compounding is to increase your accuracy, risk management and discipline skills. We all must follow the rules that come along with making money quickly. The first objective is to handle Draw-down and have a strict guideline of exiting bad trades at a loss. Especially, considering that “Unmanaged” trades are the losing trades that make all(except a few) traders fail. Often enough, it is one specific trade that a trader will not exit from that consequently ends their trading career prematurely. . If the trader does not close their losing trade quickly, their account equity can be severally damaged. You do not want an equity curve that looks like a martingale. An inevitable crash in the end. We have to secure profits and limit losses quickly.

Account Balance – Lot per Trade – Pip Value in USD

$1000 = .1lot per trade = $1 = 1 pip after spread
$2500 = .25lot per trade = $2.50 = 1 pip after spread
$5000 = .5lot per trade = $5 = 1 pip after spread
$10000 = 1.0lot per trade = $10 = 1 pip after spread
$20000 = 2.0lot per trade = $20 = 1 pip after spread
$50000 = 5.0 lot per trade = $50 = 1 pip after spread
$100000 = 10.0lot per trade = $100 = 1 pip after spread
$500000 = 50.0lot per trade = $500 = 1 pip after spread -MT4 Limit
$1000000 = 100.0lot per trade = $1000 = 1 pip after spread
$1000: Start Compounding
Month 1
20 pips X 5 days a week1 = $100 (100pips x Pip Value)= Balance $1100
20 pips X 5 days a week2 = $100 (100pips x Pip Value)= Balance $1200
20 pips X 5 days a wee3 = $100 (100pips x Pip Value)= Balance $1300
20 pips X 5 days a wee4 = $100 (100pips x Pip Value)= Balance $1400
Month 2
20 pips X 5 days a week1 = $100 (100pips x Pip Value)= Balance $1500
20 pips X 5 days a week2 = $100 (100pips x Pip Value)= Balance $1600
20 pips X 5 days a wee3 = $100 (100pips x Pip Value)= Balance $1700
20 pips X 5 days a wee4 = $100 (100pips x Pip Value)= Balance $1800
Month 3
20 pips X 5 days a week1 = $100 (100pips x Pip Value)= Balance $1900
20 pips X 5 days a week2 = $100 (100pips x Pip Value)= Balance $2000
20 pips X 5 days a wee3 = $100 (100pips x Pip Value)= Balance $2100
20 pips X 5 days a wee4 = $100 (100pips x Pip Value)= Balance $2200
Month 4
20 pips X 5 days a week1 = $100 (100pips x Pip Value)= Balance $2300
20 pips X 5 days a week2 = $100 (100pips x Pip Value)= Balance $2400
20 pips X 5 days a wee3 = $100 (100pips x Pip Value)= Balance $2500
20 pips X 5 days a wee4 = $250 (100pips x Pip Value)= Balance $2750
Month 5
20 pips X 5 days a week1 = $250 (100pips x Pip Value)= Balance $3000
20 pips X 5 days a week2 = $250 (100pips x Pip Value)= Balance $3250
20 pips X 5 days a wee3 = $250 (100pips x Pip Value)= Balance $3500
20 pips X 5 days a wee4 = $200 (100pips x Pip Value)= Balance $3750
Month 6
20 pips X 5 days a week1 = $250 (100pips x Pip Value)= Balance $4000
20 pips X 5 days a week2 = $250 (100pips x Pip Value)= Balance $4250
20 pips X 5 days a wee3 = $250 (100pips x Pip Value)= Balance $4500
20 pips X 5 days a wee4 = $250 (100pips x Pip Value)= Balance $4750
Month 7
20 pips X 5 days a week1 = $250 (100pips x Pip Value)= Balance $5000
20 pips X 5 days a week2 = $500 (100pips x Pip Value)= Balance $5500
20 pips X 5 days a wee3 = $500 (100pips x Pip Value)= Balance $6000
20 pips X 5 days a wee4 = $500 (100pips x Pip Value)= Balance $6500
Month 8
20 pips X 5 days a week1 = $500 (100pips x Pip Value)= Balance $7000
20 pips X 5 days a week2 = $500 (100pips x Pip Value)= Balance $7500
20 pips X 5 days a wee3 = $500 (100pips x Pip Value)= Balance $8000
20 pips X 5 days a wee4 = $500 (100pips x Pip Value)= Balance $8500
Month 9
20 pips X 5 days a week1 = $500 (100pips x Pip Value)= Balance $9000
20 pips X 5 days a week2 = $500 (100pips x Pip Value)= Balance $9500
20 pips X 5 days a wee3 = $500 (100pips x Pip Value)= Balance $10000
20 pips X 5 days a wee4 = $1000 (100pips x Pip Value)= Balance 11000
Month 10
20 pips X 5 days a week1 = $1000 (100pips x Pip Value)= Balance $12000
20 pips X 5 days a week2 = $1000 (100pips x Pip Value)= Balance $13000
20 pips X 5 days a wee3 = $1000 (100pips x Pip Value)= Balance $14000
20 pips X 5 days a wee4 = $1000 (100pips x Pip Value)= Balance $15000
Month 11
20 pips X 5 days a week1 = $1000 (100pips x Pip Value)= Balance $16000
20 pips X 5 days a week2 = $1000 (100pips x Pip Value)= Balance $17000
20 pips X 5 days a wee3 = $1000 (100pips x Pip Value)= Balance $18000
20 pips X 5 days a wee4 = $1000 (100pips x Pip Value)= Balance $19000
Month 12
20 pips X 5 days a week1 = $1000 (100pips x Pip Value)= Balance $20000
20 pips X 5 days a week2 = $2000 (100pips x Pip Value)= Balance $22000
20 pips X 5 days a wee3 = $2000 (100pips x Pip Value)= Balance $240000
20 pips X 5 days a wee4 = $2000 (100pips x Pip Value)= Balance $26000

We will have an opportunity to achieve $2,000 as a weekly income after the first year

Only 20 pips a day

Year 2- Month 2
20 pips X 5 days a week1 = $2000 (100pips x Pip Value)= Balance $28000
20 pips X 5 days a week2 = $2000 (100pips x Pip Value)= Balance $30000
20 pips X 5 days a wee3 = $2000 (100pips x Pip Value)= Balance $32000
20 pips X 5 days a wee4 = $2000 (100pips x Pip Value)= Balance $34000
Year 2- Month 3
20 pips X 5 days a week1 = $2000 (100pips x Pip Value)= Balance $36000
20 pips X 5 days a week2 = $2000 (100pips x Pip Value)= Balance $38000
20 pips X 5 days a wee3 = $2000 (100pips x Pip Value)= Balance $40000
20 pips X 5 days a wee4 = $2000 (100pips x Pip Value)= Balance $42000
Year 2- Month 4
20 pips X 5 days a week1 = $2000 (100pips x Pip Value)= Balance $44000
20 pips X 5 days a week2 = $2000 (100pips x Pip Value)= Balance $46000
20 pips X 5 days a wee3 = $2000 (100pips x Pip Value)= Balance $48000
20 pips X 5 days a wee4 = $2000 (100pips x Pip Value)= Balance $50000
Year 2- Month 5
20 pips X 5 days a week1 = $5000 (100pips x Pip Value)= Balance $55000
20 pips X 5 days a week2 = $5000 (100pips x Pip Value)= Balance $60000
20 pips X 5 days a wee3 = $5000 (100pips x Pip Value)= Balance $65000
20 pips X 5 days a wee4 = $5000 (100pips x Pip Value)= Balance $70000
Year 2- Month 6
20 pips X 5 days a week1 = $5000 (100pips x Pip Value)= Balance $75000
20 pips X 5 days a week2 = $5000 (100pips x Pip Value)= Balance $80000
20 pips X 5 days a wee3 = $5000 (100pips x Pip Value)= Balance $85000
20 pips X 5 days a wee4 = $5000 (100pips x Pip Value)= Balance $90000
Year 2- Month 7
20 pips X 5 days a week1 = $5000 (100pips x Pip Value)= Balance $95000
20 pips X 5 days a week2 = $5000 (100pips x Pip Value)= Balance $100000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $110000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $120000
Year 2- Month 8
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $130000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $140000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $150000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $160000
Year 2- Month 9
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $170000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $180000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $190000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $200000
Year 2- Month 10
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $210000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $220000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $230000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $240000
Year 2- Month 11
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $250000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $260000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $270000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $280000
Year 2- Month 12
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $290000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $300000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $310000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $320000
Year 3- Month 1
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $330000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $340000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $350000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $360000
Year 3- Month2
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $370000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $380000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $390000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $400000
Year 3- Month3
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $410000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $420000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $430000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $440000
Year 3- Month4
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $450000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $460000
20 pips X 5 days a wee3 = $10000 (100pips x Pip Value)= Balance $470000
20 pips X 5 days a wee4 = $10000 (100pips x Pip Value)= Balance $480000
Year 3- Month5
20 pips X 5 days a week1 = $10000 (100pips x Pip Value)= Balance $490000
20 pips X 5 days a week2 = $10000 (100pips x Pip Value)= Balance $500000
20 pips X 5 days a wee3 = $50000 (100pips x Pip Value)= Balance $550000
20 pips X 5 days a wee4 = $50000 (100pips x Pip Value)= Balance $600000
Year 3- Month6
20 pips X 5 days a week1 = $50000 (100pips x Pip Value)= Balance $650000
20 pips X 5 days a week2 = $50000 (100pips x Pip Value)= Balance $700000
20 pips X 5 days a wee3 = $50000 (100pips x Pip Value)= Balance $750000
20 pips X 5 days a wee4 = $50000 (100pips x Pip Value)= Balance $800000
Year 3- Month7
20 pips X 5 days a week1 = $50000 (100pips x Pip Value)= Balance $850000
20 pips X 5 days a week2 = $50000 (100pips x Pip Value)= Balance $900000
20 pips X 5 days a wee3 = $50000 (100pips x Pip Value)= Balance $950000
20 pips X 5 days a wee4 = $50000 (100pips x Pip Value)= Balance $1000000

Congratulations. You have been promoted to C.E.O and have been awarded an Elite Trader Certificate, granting you access to new liquidity pools and 100 Lot positions.

How does $100,000 as weekly income sound?

Advancements
New Liquidity Providers
Smaller Commission percentage per trade
Institutional Platforms
Possible Job Opportunities

Year 3- Mont8
20 pips X 5 days a week1 = $100000 (100pips x Pip Value)= Balance $1100000
20 pips X 5 days a week2 = $100000 (100pips x Pip Value)= Balance $1200000
20 pips X 5 days a wee3 = $100000 (100pips x Pip Value)= Balance $1300000
20 pips X 5 days a wee4 = $100000 (100pips x Pip Value)= Balance $1400000

What a crock.
You know how tough it is to avoid an event that is, to your market study, "random and unexpected"?
At the same time, both you and your market study will be inconsistent in reading the charts correctly, so that one day a trade you make will be worth a hundred pips and the next day one, whether or not you take them. So much so that a string of losses can happen for several days.

I do wish you the best in your endeavor for consistency.

This calculation bases on the fact that you make 20 pips a day.... so if there any losing sessions etc. you'll need perhaps 2 years and not 1....but it's possible...
if it shouldn't be why we shall keep trading? : x

Your goals are obviously unrealistic but the philosophy is basically a good one, consistent steady returns, smooth equity curve, compounding.....all good, but nothing new I'm afraid, it's called trading.

I agree with pipmutt but I always had this question that was never answered by someone that did it.
I am following a similar plan where my lot size increases with my account (3% daily growth/risk achieved with 30-40 pips per day). I started from 0.1 lots, and I am now close to 1 lot. When the account reaches a size that allows 4-5 lots for those 30-40 pips (at 3% risk), I am planning to stop raising the lot size, since that would provide 1000E per day. Now the question is:
Has anybody followed a plan like that and stayed successful for the long run?

Kostas

P.S. I know that some people in the FF have probably done so, but it would be nice to have their opinion/experience here.

I think you have more chance of success in the short term for some reason (a maths guru will probably explain why that is), in fact I've seen people make some extraordinary returns very quickly however they didn't ease off when they were substantially in front and ended up losing the lot!

Aggressively compounding gains seems to be quite a common strategy, same pitfalls but risk is limited to (a percentage of) profit rather than equity which seems more sensible in the long term.

I'm more in the slow-but-sure camp (Tortoise of the Hare and Tortoise!), although I have had my moments!

^Long term means more trades, which means a greater chance of losing trades. The law of large numbers shows us that as more trades are made, the accuracy of the user's winning trade percentage must become more accurate as well. So if a user is 99% accurate after 100 trades, he must be more like 99.999% with 100 000 trades to have the same amount of loses.

Short term trading gives you probability on your side because even if you had a 50/50 chance of obtaining 20 pips a day, after 7 days your chance of achieving this target everyday would be 0.50^7 while after 365 days it would be 0.50^365. And perhaps the advantage is in your hands with p=0.85, there is still difficulty returning consistent everyday profits as you can see by substituting p instead of 0.50 in.

You need to mix in some random losses into the equation, no matter how rigidly you follow your rules there will be days that you just are not up to it mentally, whether its your own health, stress, family pressures, or financial pressures making you take some poor decisions and of course the market is just not as predictable as you may expect.

Also you may withdraw amounts from time to time. The time factor will probably increase, but it would require an incredible amount of discipline to not change the trading method over 2 years or so.

Be ready to have this plan take a little longer than you anticipate. I've been on a similar plan for the last year. My plan was to earn 100 pips per week based on the following:

$1,500 in the account means total open positions of 1.5 (Typo: should read .15) standard contracts.

As the equity grows so to the position size. I'm very fickle on positions taken and prefere to be out of the market rather than in a bad trade.

1 year into the process and I'm approx 14 weeks behind on my weekly goals.

Two reasons for the delay:
1. to tough on entry points and miss opportunities
2. bad trades closed with losses.

Can it be done; Absolutely.
Will it unfold the way you think; Absolutely not.

The key to success is never revenge trade because you want to meet your weekly targets. This will lead to overage leverage and increase you potential for consecutive loosing trades.

Finally don't ever discuss your results in this forum. This will lead to a waste of time tinkle contest with the 95% looser traders and the traders that believe that only they can make money at this game.

Focus on your trades and keep the chirping to a minimum. Once you achieve your goals come back here and state the results along with the pic of you and you new sports car of your choice.

People will still react negatively but when you've had enough bickering you can say "I'm going for a drive in my Ferrari, see you later..."

Just my cenacle view of most members of this forum.

Good luck.

You know how tough it is to avoid an event that is, to your market study, "random and unexpected"? - This is why it is so important to be patient and wait for the right opportunity. Avoid news, avoid market open , close Or even avoid pairs with a HIGH ADR.


"Your goals are obviously unrealistic"-The goals are not unrealistic, but achieving 20 pips a day can be difficult, as we all know this very well.

Yes, we will have losses and some opportunities may be missed. The objective to is earn 100 pips a week. Whether you earn 20 pips a day consistency, or make 1 trade a week that earns 100 pips, either way, you will be on track. I think it is more difficult to earn consistent pips, than to make 1 good trade a week. However, if you play it, "consistent steady returns, smooth equity curve, compounding", these goals can be realistic.

I am trying to shed light on goals and seeing the big picture as many lose this overall objective before they even get off the ground. ( I am a perfect example, I've made 1000's of pips but, fail to keep the pips, because of greed. I forget about the long term objective and I only concentrate on the daily gains. This habit has been the cause of my failure for years.) Yes we will experience losses, Of course we will, losses are perfectly fine and bound to happen. But, unmanaged Bad trades often kill a traders future prematurely. Too many traders fail to accept a loss. I see this on myFXbook all the time. The traders have consistency for 3-5 months, and 1 Mismanaged trade blows their account. They fail to accept the loss and they always "think", that the trade will eventually come back in their favor( the typical Retracement Trader) -Look at the weekly charts, can you really hold a position and stay solvent for that long? Better yet, Why would you want to? Cut your losses, preserve your margin for another opportunity.

""a string of losses can happen for several days.""- If you have a string of losses for several days, then your strategy is not a solid strategy. And you need to improve your method before these goals can be achieved. ( Strategy Not included) -Even with consistent strategies, traders still fail to be consistent.

"Has anybody followed a plan like that and stayed successful for the long run?"- Russian traders are the experts at compounding after each winning trade. Are they successful in the long run, I am really not sure, But from monitoring many PAMM accounts, they normally end with a huge loss wiping out all their gains. So compounding after each winning trade, does not sound stable. This is another reason why I made this thread. "There are many levels of compounding".

I think that increasing your lot size aggressively will limit your success overall, because many winning trades with small lots, will be wiped out be 1 or 2 losses once you are using larger lot sizes. I know some platforms offer % of balance per trade, buy I think this is the ""CROOK"" that you need to watch out for.. Like I said, continually increasing your lots will ruin your gains.

When I made this agenda, I had this in mind, that we should be consistent for a few months time, let our accounts grow, then increase our Lots. It may not grow your account as fast as the Russian compounder's, but I believe we will meet our goals in the future. PipMutt- Your Math comment I think proves this well.

Shabs19- Your 100% correct. Pressure and situations often influence traders decisions in an unprofitable way. As far as removing funds from the account- I think the best decision would be to have 2 accounts. Bridge the together, Compound 1 account and pull out funds on the other, when ever needed. ( so Now we need $2000 starting) Diversifying funds into separate accounts(brokers) is highly suggested. Use a trade copier of MT4 or use PAMM with your own Sub accounts.

Bablo- ""$1,500 in the account means total open positions of 1.5 standard contracts.""- Thats insane! I am suggesting .1 lot for every $1000 of margin.

""Finally don't ever discuss your results in this forum. This will lead to a waste of time tinkle contest with the 95% looser traders and the traders that believe that only they can make money at this game.""
Agreed. I stopped visiting forums and trading discussions for about 2 years. I knew that criticism and advice from the herd would only distract me from my goals. It has been very beneficial. However, I am no expert, I still have questions and we will never stop learning. But there comes a time, when you find something that works for YOU and you just need to apply it everyday in and out, stick to the game plan, cut the losses and be confident. Gains will prevail.

Theoretically, on paper, sure. But as we all know actually doing it is something else.

I certainly believe in consistent returns and the power of compounding but 1k to 1bn in 4 years, that's taking belief to a whole new level!

Probably the least of your concerns right now but I do believe you might have a few problems with liquidity along the way.......

Anyway, I guess the only way to find out if you can do it is to try, so good luck! In the words of the song....."if you don't have a dream, how you gonna have a dream come true!"

While I agree with some of the sentiment of the original post (steady consistent returns over a long period of time) I think much of it sounds like the kind of spiel you get on the opening morning of a trading course - theory that sounds nice, but very little resemblance to reality. Sorry, no disrespect to the Poster but that's just how I see it.

I, for one, find a "x pips per day" goal to be very risky proposition indeed. Trading success is usually built around developing the knowledge, experience and skill that are key inputs to a comprehensive trading method - over a long period of time. Part of that is developing the capability of a method and understanding very clearly what that capability might mean in terms of pips/$ return, on say a monthly basis, but only when that method is becoming highly developed... so pips and $ are just outputs.. To have it the other way around - setting a target as an inexperienced trader and then seeking a system to meet that target is very risky because it tends to drive dysfunctional behaviour, embeds false assumptions in your trading method, and often leads to frustration and losses (system hoppers should know what I mean here). Targets are not bad or wrong, they just need to be put into the correct context and used in the right way - having a pips target drive the development of your trading method is very risky and will likely impede your progress, if not ruin your trading journey altogether.

Oh, no, another x -> one billion dollars thread.

http://www.guiagamer.com/wp-content/...d-facepalm.jpg

I bet that in less than 3 months you have blowed up your account, post here your myfxbook evolution and prove that I'm wrong, it's not necessary to public your strategy, you can hide your trades at myfxbook, show only your balance evolution.

And by the way, why stop with a billion dollars? Why not continue trading until get a TRILLION dollars?

You're right. Typo on my part and corrected above. 1.5 should have been .15. Sorry for the mistake.

The trouble with these threads is that the OP assumes that the 20 pips is easier to achieve than 200 pips or that a certain number of pips has any meaning at all.

The profit from a certain number of pips is inversley related to the size of your stop-loss (assuming every trade has the same % risked).

In this case your pip goal should be determined by your time frame. You've got a better shot @ a higher time frame.

Trading for 20 pips means that 10-20% of your profits will go to the spread. That is a lot of negative expectancy to overcome.

cutting your winners is not an edge or even a solid trading principal.

Its plausible but nearly impossible.

Like the saying goes,

"What is mathematically possible, is psychologically impossible"

I am amazed by the negativity in this thread

Every trader has his own complicated psychology. If a trader feels happy, feels positive, feels confident that he can earn his 20 pips a day, so be it. Probably he has a set of trading systems that do earn him at least 20 pips a day.

Furthermore he must be careful that if he is in a good trades, he rides the profits and not close the trade at exactly 20 pips so he feels good that he earned his pips for the day.

Well to me all this sounds possible but, there will be more time and effort involved a lot of stress and so on.

I like the above quote because it is so true.

"The first objective is to handle Draw-down and have a strict guideline of exiting bad trades at a loss."

Having $20 or $200 on the line is psychologically very different to having $200,000 or $2m on the line! The mind works in mysterious ways... well mine does