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Only 40 trades in a year will double your capital

prakash (prakash104)
Aug 15 2016 at 05:09
21 inlägg


                  Majority of novice forex traders around the world have wrong concept of overtrading.They are thinking that they will make money only if they trade a lot(i.e 200 trades in a month).200 trades in a month means 2400 trades in a year.But this is absolutely wrong way of trading forex.

                   I am making money only with 40 to 50 trades a year.Can you believe this????.Yes only 40 trades can do it for you.If you have a capital of 10000USD. Then you can make 10000USD profit in one year so that your capital will now be doubled as 200000USD.This simple math with prove you that 40 trades in a year is enough to double your trading capital in one year.

Example:

True power of risk/reward:
 
Assume a trader starts with 10000 USD.
Risk per trade is 500 USD
Reward per trade is 1000 USD.
Risk/Reward ratio is 1:2
Trading style : swing trading
Risk per trade : 5% risk model
Total Trades placed in a year : 40
Winning trades : 20
Losing trades : 20
Accuracy of his trading technique : 50%
Winning amount : 20 x 1000 = 20000
Losing amount : 20 X 500 = 10000

Net profit = 10000 USD
Annual returns : 100%

Capital doubled as 20000 USD in one year time with just 40 trades.

                          See the true power of risk reward in the above example.The above trader is using 1:2 risk/reward consistently in all 40 trades.But he lost half of his trades.That is out of 40 trades, he lost 20 trades and win 20 trades.So his strategy accuracy is only 50%.Yet he doubled his capital in the year end.This is professional forex trading.
"Slow and steady wins the race"
kieran (snapdragon1970)
Aug 29 2016 at 09:56
1948 inlägg
How about 20 trades in 3 months of the year to double your capital,then close out all your positions.
40% winning trades ,with no profit limit.
"They mistook leverage with genius".
CrazyTraderfx (CrazyTrader)
Aug 30 2016 at 06:28
1718 inlägg
Ok 15 trades left for 8 months! Don't over trade your plan... Let's check later
prakash (prakash104)
Sep 04 2016 at 07:06
21 inlägg
Friends,
                I don't want to tell anything for your reply except onething, my trading account will talk after few months.I will be in decent profit.
"Slow and steady wins the race"
mlawson71
Sep 04 2016 at 10:31
1487 inlägg
I believe you, but one thing one should always keep in mind is that just because one strategy works for someone it doesn't mean it will work for for everyone else.
CrazyTraderfx (CrazyTrader)
Sep 04 2016 at 13:46
1718 inlägg
The pb is... It seems not to work for himself.

I'm going to share something really magic that works... and I'm going to proove it.

Yes Only 2 trades a year can double your account... do you beleive it? Same theory but with higher lotsize.

Do you know what? The same theory could also work with 1000 trades a year... do you beleive in mathematics? It works lol.

vontogr (togr)
Sep 05 2016 at 10:10
4862 inlägg
prakash104 posted:


                  Majority of novice forex traders around the world have wrong concept of overtrading.They are thinking that they will make money only if they trade a lot(i.e 200 trades in a month).200 trades in a month means 2400 trades in a year.But this is absolutely wrong way of trading forex.

                   I am making money only with 40 to 50 trades a year.Can you believe this????.Yes only 40 trades can do it for you.If you have a capital of 10000USD. Then you can make 10000USD profit in one year so that your capital will now be doubled as 200000USD.This simple math with prove you that 40 trades in a year is enough to double your trading capital in one year.

Example:

True power of risk/reward:
 
Assume a trader starts with 10000 USD.
Risk per trade is 500 USD
Reward per trade is 1000 USD.
Risk/Reward ratio is 1:2
Trading style : swing trading
Risk per trade : 5% risk model
Total Trades placed in a year : 40
Winning trades : 20
Losing trades : 20
Accuracy of his trading technique : 50%
Winning amount : 20 x 1000 = 20000
Losing amount : 20 X 500 = 10000

Net profit = 10000 USD
Annual returns : 100%

Capital doubled as 20000 USD in one year time with just 40 trades.

                          See the true power of risk reward in the above example.The above trader is using 1:2 risk/reward consistently in all 40 trades.But he lost half of his trades.That is out of 40 trades, he lost 20 trades and win 20 trades.So his strategy accuracy is only 50%.Yet he doubled his capital in the year end.This is professional forex trading.

Above is just mathematics theorem. First you need to have strategy with such parameters which you apparently dont have...
Malky2308 (HolyGrail2222)
Sep 05 2016 at 10:17
20 inlägg
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.
vontogr (togr)
Sep 06 2016 at 05:20
4862 inlägg
HolyGrail2222 posted:
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.

Nope,

if you have strategy that produces 1000% with just 20 trades over 5 years
and another strategy with same results but 2000 trades
Which one you follow?
Malky2308 (HolyGrail2222)
Sep 06 2016 at 09:53
20 inlägg
togr posted:
HolyGrail2222 posted:
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.

Nope,

if you have strategy that produces 1000% with just 20 trades over 5 years
and another strategy with same results but 2000 trades
Which one you follow?


It depends on the risk, the DD and size ofLots of the trades, the risk reward ratio, the profitability, the looks of the curve, but it does not depend on the amount of Trades. I would rather follow a system with more trades, because they would be smaller lots and tighter stop loss, and eventually that would result in Less DD. SO less risk. But that is not science.
Malky2308 (HolyGrail2222)
Sep 06 2016 at 09:54
20 inlägg
I insist in encouraging people to find their own rythm and pace in trading. Some people need to see many trades to feel ok. Other people need only to enter market just now and then. Everyperson has a unique psyche that they have to satisfy. And that also includes trading styles. As long as a trader profit I really do not care how they do it as long as it does not disturb them psychologically. If I am sure of system but it only trades very little I would feel anxious. Because my personality requires me to be more present with trades in the markets. Other people have other psychological needs. SO I insist in giving advice to students and newcomers to feel confident and relaxed when trading is also a matter of finding your own pace. Not only a system. There are penty of systems to profit. But the key is in our psyche, When you are realistic about profit returns and you feel very comfortable with trading style then probably you have found the way.
mlawson71
Sep 06 2016 at 10:37
1487 inlägg
togr posted:
HolyGrail2222 posted:
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.

Nope,

if you have strategy that produces 1000% with just 20 trades over 5 years
and another strategy with same results but 2000 trades
Which one you follow?

To be honest, I think there would be people willing to do both (just not at the same time, obviously). People are different, their needs and abilities are different, the way they adapt is different.
vontogr (togr)
Sep 06 2016 at 12:50
4862 inlägg
mlawson71 posted:
togr posted:
HolyGrail2222 posted:
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.

Nope,

if you have strategy that produces 1000% with just 20 trades over 5 years
and another strategy with same results but 2000 trades
Which one you follow?

To be honest, I think there would be people willing to do both (just not at the same time, obviously). People are different, their needs and abilities are different, the way they adapt is different.

Thats not the point. Point is that strategy that trades a lot provides sufficient base for backtesting.
Malky2308 (HolyGrail2222)
Sep 07 2016 at 06:26
20 inlägg
togr posted:
mlawson71 posted:
togr posted:
HolyGrail2222 posted:
Let everyone find their own pace and system. Each person has a rythm. Some people prefer to trade a lot. And they can profit. Others are very patient and they trade only a few trades a year. Everyone can profit or lose money at the end but we should encourage people to find their own pace. Not everyone has the same disponibility , some profit with bots with lots of trades and other trade manually with patience, but it is about finidng calmness in trading and of course profit. If you find a method or system it does not matter how it profits , but it should make you feel confident and relaxed. And to feel confident you need to know the markets. Many fail and quit, but those who remain I admire. If they profit, I do not really mind how they do it, with 10000 trades a year or 20 trades a year. There is no unique system. And the risk is one of the main issues. Not the amount of trades. But it has to suit your personality and psychological needs or it will stress you.

Nope,

if you have strategy that produces 1000% with just 20 trades over 5 years
and another strategy with same results but 2000 trades
Which one you follow?

To be honest, I think there would be people willing to do both (just not at the same time, obviously). People are different, their needs and abilities are different, the way they adapt is different.

Thats not the point. Point is that strategy that trades a lot provides sufficient base for backtesting.

Exactly , That is a good point, the more trades the more persistent is a system, We have more statistical evidence that it will provide good results in the future.
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