Wise to discuss strategy with my broker?

pfff, 2% a day? I know I had this discussion a lot of times a while back. But this will be incredibly hard to hold up. If you look at the track records of now really rich people, then you can see that 20% to 30% CAGR is what can be done on a consistent basis over decades (and if you look at their early records, then you will see that they max it at around 50% a year.

Is it wise to discuss your approach with the broker? If you are a famous investor and are pouring in billions, then probably not. If you are a nobody, then they couldn't care less.

2% is very possible and not too hard for retail (if you know what you are doing). The reason big institutions cannot make 2% a day is simply because 1. Their account cannot be leveraged due to the massive size of their capital and 2. because there would not be enough liquidity in the markets for them to get in at a favourable price using a leveraged account with their size of capital.

For example, I am planning to invest $100. Is it possible, excluding the fact that there are plenty of unethical brokers, to make 2% daily with a micro account and for 3 years (or less) to make $50000? Because on demo account I already realized this plan, but reading from many experienced traders (I guess), this is not so possible. I managed to make $1000 for 200 days, then another $10000 for 120 days and finally $50000 for 80 days. The numbers are rounded. This in total is around 1.5 year. Sadly, this demo account is not on MT4 platform, but recently opened demo on MT4 and I will post my progress here. So what do you think?

P.S. Trading with average lot size is recommended, but what is the minimum/maximum and/or average lot trading in a liquid market?

Thank you.

Hi Ognen

1. These days most brokers don't actively trade against their customers but they WILL take the other side of trades, especially on micro and mini accounts rather than passing them through, simply because at this level most of the accounts are from newbies and inexperienced traders most of whom will, on average, lose their money, so their theory is if the customer is going to lose their money they may as well lose it to their broker. It's not a sinister situation, just a practical one and nothing to worry about. When people lose money in FX they tend to blame brokers or market-makers. In reality it's mainly just down to bad decision-making, indiscipline or over-leveraging.

2. You can get around this by going through a STP/DMA broker so they have no 'desk' at all.

3. In a liquid market you will never cause problems for the broker. Most brokers can lay-off at 5m or 10m USD a clip on EURUSD, although some will have a stepped spread system where for example if you place a trade of USD 5m, you will only get the tightest spread on the first 1m, then there will be a slightly wider spread on the rest. During Asian trading these levels might be lower. As for a minimum, well 1 micro lot is usually the lowest but if you're trading at that level and you become successful later on, you will want to switch to a semi-institutional set-up to get better deals.

4. 2 per cent daily. If you compound this every day, you will make 281 million dollars by the end of the 3rd year IF you can get your trades filled ;-]

5. Don't tell your broker your strategy. However, if you can make 2 per cent daily for 90 days then it's OK to tell ME