Compound Interest rate. Comparison between FX and Banks.

Aug 01, 2014 at 15:05
1,855 개의 뷰
5 Replies
Igor123472
forex_trader_75987
May 02, 2012 부터 멤버   게시물117
Aug 01, 2014 at 15:05


Hi guys,

i would like to share some thoughts about profitability trading in FX with ... let's say, small percentage per month.

Compound Interest gained by Banks compared with trading in your fx account are absolutely nothing... While the bank promises you 4% per year, you could make 5% per month or 60% per year.

I prepared an excel sheet to look better how much you can earn without greedy or risk money you cannot lose.

Supposing one professional trader making 30% per month from an account of 100,000US$ HE/SHE will gain nothing more and nothing less than US$ 2,329,808.51 .

Evaluating for the bank paying 4/12 = 0.33% per month , the client will take US$ 104,032.67


So, this simple math is truely possible? or fantasy? Promising? You can make millions with lowest Downdraw ?








Igor123472
forex_trader_75987
May 02, 2012 부터 멤버   게시물117
Aug 01, 2014 at 15:05

in PDF
Igor123472
forex_trader_75987
May 02, 2012 부터 멤버   게시물117
Aug 01, 2014 at 15:05

all values in US$, with a period of 12 months or 1 year.
Jan 31, 2012 부터 멤버   게시물168
Aug 01, 2014 at 17:12
According to my experience, making 30% per month on a long term basis is a fantasy, the most optimistic and real value is 3-5%.

P.S.
Here is a good visual compounding calculator - https://www.forex21.com/forex-compounding-calculator


Igor123472
forex_trader_75987
May 02, 2012 부터 멤버   게시물117
Aug 01, 2014 at 18:09
thanks @MRodrigez
Mar 19, 2014 부터 멤버   게시물2
Aug 02, 2014 at 14:32
MRodrigez posted:
According to my experience, making 30% per month on a long term basis is a fantasy, the most optimistic and real value is 3-5%.

P.S.
Here is a good visual compounding calculator - https://www.forex21.com/forex-compounding-calculator



+1.
The notion of making 30, 40, or even 100% a month typically comes from folks who are new to trading and are incredibly underfunded.
When more experienced traders try to explain how 5% a month is very challenging to pull down! they become discouraged because 5% of $300 isn't 'worth their time'.

Thus, they over leverage themselves and try to secure much larger profits, rather than focusing on the process, not the results.
It would be more wise if newer folks simply stuck with low levels of leverage, traded to their best of ability and saved up money to really fund their account in a few years.

But, unfortunately the majority of retailers have too much greed in their heart, and will crash and burn in just a mere few months time without the proper education.
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