Trading Capital - How much is enough?

#21
Nov 21, 2010 8:57am Nov 21, 2010 8:57am

pip_seeker
| Joined Dec 2007 | Status: IF YOU SEE SMOKE, RUN! | 1,206 Posts

Quoting candlepips

Disliked

Yes it is the same percent, no doubt, but the psychology is different. With $100,000, you don't mind trading 1:10 leverage and taking home few 1000's every month, as that takes care of your expenses comfortably.

With $1000, you are tempted to use bigger leverage and lot size, coz small profits don't motivate you, and in many cases frustrate you.

It's Psychology.

Ignored

Provided of course that 100k is safe co-mingled with other broker funds?

How do you spell safety boys and girls?

R-E-F-C-O

#22
Nov 21, 2010 9:00am Nov 21, 2010 9:00am

watchdaride
| Joined Nov 2007 | Status: Trader | 17 Posts

A good idea is to say if your goal is say 200 pips a month . Start by trading 1/2 lot then when you make 200 pips move up to 1 lot and move up everytime you hit your goal . I trade 1lot per $20k .

#23
Nov 21, 2010 9:02am Nov 21, 2010 9:02am

Sim
Joined Jun 2009 | Status: Trader | 2,000 Posts

if you can daytrade then you can make a $50 or £50 a day average income with minis.. as little as £100/200 account

#24
Nov 21, 2010 5:34pm Nov 21, 2010 5:34pm

PeterE
Joined Oct 2009 | Status: magic | 1,729 Posts

yes pip_seeker, i think this is his approach

small increments over a good amount of time and the psychological impact is virtually seamless

plus, there is no rush...........its an attitude i could benefit from at times

Quoting pip_seeker

Disliked

It's an emotional game and they are leaving their emotions at the door.

Trading small never hurt anyone, it's a true showing of patience in my opinion. If you lack patience the market will get you sooner or later in my experience, yours may differ.

FX is not a "get rich quick" scheme, the minute you treat it as such you might as well go to Vegas instead because at some point all you will be doing is gambling anyway.

Ignored

#25
Nov 22, 2010 10:13am Nov 22, 2010 10:13am

pip_seeker
| Joined Dec 2007 | Status: IF YOU SEE SMOKE, RUN! | 1,206 Posts

I will post an example how little money can grow big pretty fast in no time at all and with minimal risk to you and your bottom line, provided of course that your system / method obtains nearly the same amount your risk settings are similar to what I describe here.

However, this is only a rough example to show the power of compounding.

Month 1 fund account 1500

trade micro-dime lots.
$1500 + 300 = 1800
1800 + 300 = 2100
2100 + 300 = 2400
2400 + 300 = 2700
trade 20 cent lots
2700 + 600 = 3300
3300 + 600 = 3900
3900 + 600 = 4500
trade 30 cent lots
4500 + 900 = 5400
5400 + 900 = 6300
trade 40 cent lots
6300 + 1200 = 7500
trade 50 cent lots
7500 + 1500 = 9000
trade 60 cent lots
9000 + 1800 = 10,800
Return = 10800 - 1500 = 9300/1500 = 620% APY

Consistency is the key to great wealth a flash in the pan serves no purpose.

#26
Nov 22, 2010 10:24am Nov 22, 2010 10:24am