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Członek od Aug 14, 2010 219 postów
Will Schaarrand (pipinvestment1)
Aug 30 2010 at 08:29
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.. --------------------------------------------------------------------------------------------------------------------------------- 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. ---------------------------------------------------------------------------------------------------------------------------------- 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 contnue to lose our money. ------------------------------------------------------------------------------------------------------------------------------------ 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''' ----------------------------------------------------------------------------------------------------------------------------------- This information has been taken from my website, as I thought we should all SEE THE BIG PICTURE ------------------------------------------------------------------------------------------------------------------------------------ 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 -------------------------------------------------------------------------------------------------------------------------------------- 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 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 1 pip at a time |
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Członek od Apr 13, 2010 68 postów
victor (rubionfunds)
Aug 30 2010 at 09:35
well said man.. well said ! this for sure is a sermon that everyone needs to listen to....not only the new traders.
winning isnt victory and losing isnt defeat. |
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Członek od Apr 13, 2010 68 postów
victor (rubionfunds)
Aug 30 2010 at 11:03
i will like to add again.
your post just boils down to compounding interest. a trader can actually turn $1000 to $1 million in the next 3 years if he makes 21.2% compounded monthly. the 20 pip a day target is cool but it might make the trader indulge in 'over-trading' thinking he must place a trade EVERYDAY and MAKE THAT 20 PIPS ! and when he makes a loss..he TRIES TOO HARD and places more trades or increases lots to get that daily target. this is not cool ! so i suggest that a MONTHLY target is set. an achievable target like 21% so the trader knows he needs to make 5% this week... he might make more but the 5% stays in the account. this involves discipline and until there is discipline consistency will NEVER come ! winning isnt victory and losing isnt defeat. |
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Członek od May 30, 2010 64 postów
Voffi (Voffi)
Aug 30 2010 at 11:21
(zmieniany Aug 30 2010 at 11:23 )
Hahaha when I saw the thread name I was like 'ohh not one of these again....'
I think most people have too high expectations, are too impatient and are not willing to practice and master the 'boring' side of what it takes to become a professional. And I'm referring to money management, psychology, risk management, amongst many other things that are needed as well. Also many people don't have their priorities 'right' when trading, they always think of how much they could earn in a trade when they should be focusing on protecting the capital and risk management. Enough of my ranting.. Best regards, Stefán. A person is only limited by the thoughts he chooses. |
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Członek od Aug 13, 2010 43 postów
Paul Ng (paulng)
Aug 30 2010 at 20:12
good post
"The first rule of forecasting should be that the unforeseen keeps making the future unforeseeable." - David McCasland (January 5,2012, Our Daily Bread) |
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Członek od May 18, 2010 47 postów
govindkp (govindkp)
Aug 30 2010 at 22:19
Will , no offense.. but that essay was not worthy when matched up with Victors summary :)
Most people get caught up in these figures game because the only thing they see is the last number ..i.e, a 1000K account.. They forget that its made in years and they try to get to that goal in months ...one thing is for sure, a real gambler and a real trader is alike....coz both take calculated risk. People say forex is not gambling...but it really is. Thats why its called speculative market...even if you are an EW or fibb expert , you are still speculating :) If i had a 1000K i wud invent a time machine and give it for lease, so that you dont have to follow those lagging indicators anymore :D |
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Członek od Aug 11, 2010 3 postów
Gary Sharp (sharpfx)
Sep 04 2010 at 00:32
Ah yes..but...gambling is gambling because you have no control over losses. Bet $1,000 and if you lose you have lost the entire $1,000. Speculate with $1,000 and if you lose your loss is limited to your stop-loss or the point at which you exit the market. Just like owning a home, if the price should begin to fall you would sell-out, right? Is that gambling?
By the way, if you start with $1 and double your money every day, how many days will it take to reach $1-million? It will take 20 days! I think the point being made is that the FX market, and the leverage available, presents a real opportunity for the average person to become wealthy PROVIDED sensible money management forms part of the traders' tool kit. Another point of interest before I stop ranting on is the 50/50 nature of FX trading. Like flipping a coin, over time the results will be 50% heads, and 50% tails. Try it! So, roughly 50% of trades will win, and 50% of trades will lose. So, 2 to 1 odds or better is essential to long term gain. That is, a 100pip stop must be matched by a 200pip or larger take profit. Over 100 trades you lose 5,000pips, and gain 10,000 pips, for a 5,000pip net gain! |
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Członek od Aug 14, 2010 219 postów
Will Schaarrand (pipinvestment1)
Sep 08 2010 at 09:32
Having goals in life adds motivation and creates a pathway to success. Without laying out some sort of structure, you cannot justify if you are on track or not. This is only an agenda and forecast of what we should be focusing on.
Just like a business, planning and building a solid foundation is the most important aspect. Most businesses fail within the first few years because of poor management and lack of capital. Now lack of capital is normally caused from the first problem- Poor management. In order to have enough capital for long term expenditures and potential growth, we need to plan for the future. In order to plan for the future, we need goals to keep us in check. These goals are the little stepping stones that get us somewhere in life. Not the idea nor the vision. Our priority is to make $. In order to make money, we have to conserve our capital, allowing us to make that next trade. Calculated risk = Trading, innovation, and is a necessary procedure to accomplish something on YOUR OWN. With out taking on some risk, you will have be an employee for most of your life. Yes, we are speculators. Thats the name of the game. Some speculators are just more accurate than others. Ultimately, they can stay solvent long enough to make another trade = Risk management. 1 pip at a time |
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Członek od Aug 14, 2010 219 postów
Will Schaarrand (pipinvestment1)
Sep 08 2010 at 09:37
Voffi posted: they always think of how much they could earn in a trade when they should be focusing on protecting the capital and risk management. Best regards, Stefán. Exactly. For every trade you put on, you need to determine HOW much you are willing to lose.. If the loss is greater than the return and your accuracy is under 90%, you should not take the trade and wait for a better opportunity. Just because we may have a goal of 20 a day, does not mean we have to risk 100 pips to gain the 20 pips. That is foolish, but unfortunately, I see traders exercising this concept. HOPE and HOLD> Thats not planning, thats ending your career prematurely.. OK back to trading... 1 pip at a time |
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Członek od Jul 21, 2010 87 postów
Siitari
Sep 08 2010 at 11:19
I just have to say I feel that when trading with these kind of objectives it's foolish to trade with fixed lot size. Easier for sure but trading with percents makes it a lot smoother.
As I see it you strive for 10% gain every week(a huge gain btw). e.g. Starting balance 1000$ 20 pips X 5 days a week1 = $100 (100pips x Pip Value)= Balance $1100 That's a 10% gain. If you traded with 10% gain each week(lot size likely varies every trade) you have a very different profit curve: 10% for week1 = Balance $1100 10% for week2 = Balance $1210 10% for week3 = Balance $1331 10% for week4 = Balance $1464 In first month we're 64 dollars ahead. And still you trade with 20 pips gained a day... that doesn't change. Only traded lot-size changes. To simplify next moths(to make it even more simpler every month calculated here is 4 weeks): Month 2 end balance = $2144 - $344 more profit Month 3 end balance = $3138 - $938 more profit Month 4 end balance = $4595 - $1845 more profit Month 5 end balance = $6727 Month 6 end balance = $9850 Month 7 end balance = $14,421 Month 8 end balance = $21,114 Month 9 end balance = $30,913 Month 10 end balance = $45,259 Month 11 end balance = $66,264 1 year profit(calculated with 48 weeks only) = $97,017 - a whopping $71,017 difference to a fixed lot-size($26,000) in profits!!!! Only difference being a percentage of balance at stake instead of trading fixed lot-size. In three years(48 week year as calculated before) and eight months profit gained this way would be astonishing $198,730,122!! Difference of $197,330,122!! Too incredible? Yes, definitely. I mean 10% gain per week is insane be it fixed-lot or percentage. What if we calculated this so that we have the same profit after three years and eight months as the presented in first post but with a varied lot-size? Our weekly gain would need to be significantly smaller and far more realistic. Our goal = $1,400,000 or so in 3 years and 8 months. Insert simple math here :) I'll just cut to the result to save us some pain. We would only need about 5.83% gain per week to achieve this(actually less since I calculated with only a 48 week year(there are times you really don't want to trade so that's the reason for 48 weeks only)).Far more realistic objective than 10% per week thought it's still a big gain. Just my thoughts. Feel free to rant about it. P.S. And nothing really guarantees that one can actually make any profit in the first place. These were just calculations that IMHO prove a point about money management but this doesn't make anyone a successful trader. Less effort, better results. |
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