$500 to $18m in 5 years...fact or fiction? - page 2

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guys..again did you ever hear about a broker who'll allow you to trade more than 50 lots caz that's what's all this plan about even if you have the system and evry thing else there will come a time that you'll need to buy or sell 200 standard lots with 1:200 leverage i don't think that this is possible for any broker at least what i know do any body know a broker who'll allow this.

 
cementman:
guys..again did you ever hear about a broker who'll allow you to trade more than 50 lots caz that's what's all this plan about even if you have the system and evry thing else there will come a time that you'll need to buy or sell 200 standard lots with 1:200 leverage i don't think that this is possible for any broker at least what i know do any body know a broker who'll allow this.

It is not necessary to stick to one broker, you can divide your funds in different accounts,

So after 36 months you will be trading 38.3 standard lots and your equity would be $230,100. So you might probably afford to hire a secretary at this stage

 
kevmcfoster:
It is not necessary to stick to one broker, you can divide your funds in different accounts, So after 36 months you will be trading 38.3 standard lots and your equity would be $230,100. So you might probably afford to hire a secretary at this stage

good idea, or you could also scale in multiple lot positions. instead of 200 at once, do 50,50,50,50. or 49,48,47,46,10.

by the way, great work SoulTrader. you will be handsomely rewarded for your discipline!

 

Thanks for the reply Kevmcfoster and Scott but can you actualy do that buy 50 then another 50 and so on or it's maximum 50 at any point of time..thanks

 

At a certain level you would open an account direct with a bank. Believe me when I say that 50 lots is nothing to some traders and these traders do not trade in the fake forex market (retail market makers).

I know traders who put 50 lots on catching the NFP spike.

Focus on the first 3 months before you worry abaout the last 33. If you can start this plan and get it through 3 months you should be a believer.

Yes the market changes and systems change, blah blah blah. So what? Focus on getting 100 pips a month like the man in the first post said.

If your system changes or you take a loss one month. Get over it and move on. So it will now take 37 months!

The biggest problem you will ever have in your trading and money management is human nature. Human nature wants to complicate everything. This is why people jump from system to system. They dont want it easy. The hardest thing in trading is realizing how easy it is. But easy and simple is not very exciting. Not much glory in trading an ema crossover consistantly on a 4h chart.

But I know a guy who got very rich just trading a simple EMA crossover on the 4h charts and being aware of fundamentals and price action (support resistance). He hedged when it went the wrong way. He could explain his sytem to anyone in the world in under 5 minutes. Problem is it sounds so simple, it does not look like anything. I also guarantee that some people reading this right now will be dismissing it.

So remember, all you are looking for is a system that will win more than lose. then you use lot sizes and TP levels that lock in profit and minimise losses.

In conclusion here is the plan:

1. Pick a system

2. Learn the system so that you eliminate subjective emotion (second guessing yourself)

3. Trade the system.

4. Compound your account so you can increase your trade size month after month.

 
Quantem:
At a certain level you would open an account direct with a bank. Believe me when I say that 50 lots is nothing to some traders and these traders do not trade in the fake forex market (retail market makers).

I know traders who put 50 lots on catching the NFP spike.

Focus on the first 3 months before you worry abaout the last 33. If you can start this plan and get it through 3 months you should be a believer.

Yes the market changes and systems change, blah blah blah. So what? Focus on getting 100 pips a month like the man in the first post said.

If your system changes or you take a loss one month. Get over it and move on. So it will now take 37 months!

The biggest problem you will ever have in your trading and money management is human nature. Human nature wants to complicate everything. This is why people jump from system to system. They dont want it easy. The hardest thing in trading is realizing how easy it is. But easy and simple is not very exciting. Not much glory in trading an ema crossover consistantly on a 4h chart.

But I know a guy who got very rich just trading a simple EMA crossover on the 4h charts and being aware of fundamentals and price action (support resistance). He hedged when it went the wrong way. He could explain his sytem to anyone in the world in under 5 minutes. Problem is it sounds so simple, it does not look like anything. I also guarantee that some people reading this right now will be dismissing it.

So remember, all you are looking for is a system that will win more than lose. then you use lot sizes and TP levels that lock in profit and minimise losses.

In conclusion here is the plan:

1. Pick a system

2. Learn the system so that you eliminate subjective emotion (second guessing yourself)

3. Trade the system.

4. Compound your account so you can increase your trade size month after month.

Excellent.

cementman, you won't want to keep funds with the bucketshop MT brokers when you get over the 250k-500k marker unless you're an IB and it makes financial sense to do this via being paid IB rebates on your own trading. Anything over 1MM needs to go directly with a bank.

 
Quantem:
At a certain level you would open an account direct with a bank. Believe me when I say that 50 lots is nothing to some traders and these traders do not trade in the fake forex market (retail market makers).

I know traders who put 50 lots on catching the NFP spike.

Focus on the first 3 months before you worry abaout the last 33. If you can start this plan and get it through 3 months you should be a believer.

Yes the market changes and systems change, blah blah blah. So what? Focus on getting 100 pips a month like the man in the first post said.

If your system changes or you take a loss one month. Get over it and move on. So it will now take 37 months!

The biggest problem you will ever have in your trading and money management is human nature. Human nature wants to complicate everything. This is why people jump from system to system. They dont want it easy. The hardest thing in trading is realizing how easy it is. But easy and simple is not very exciting. Not much glory in trading an ema crossover consistantly on a 4h chart.

But I know a guy who got very rich just trading a simple EMA crossover on the 4h charts and being aware of fundamentals and price action (support resistance). He hedged when it went the wrong way. He could explain his sytem to anyone in the world in under 5 minutes. Problem is it sounds so simple, it does not look like anything. I also guarantee that some people reading this right now will be dismissing it.

So remember, all you are looking for is a system that will win more than lose. then you use lot sizes and TP levels that lock in profit and minimise losses.

In conclusion here is the plan:

1. Pick a system

2. Learn the system so that you eliminate subjective emotion (second guessing yourself)

3. Trade the system.

4. Compound your account so you can increase your trade size month after month.

Well said Quantem.

You are right, for people who cannot make it thru the 1st 3 months by fullfilling the important rule of this strategy i.e. 100 pips per month, should move on.

We all know that a trading system that may be right for one person maynot necessiarily be right for another.

So try this strategy on a demo 1st before diving in. If it feels right for you, then plan your next step, i.e. executing this strategy in real time

 

Guys,

to clear out the doubt of a drawdown.

As i said in my 1st post that all the rules have to be fullfilled month after month for this strategy to work. So if in any month you are unable to make 100 pips or have a drawdown, you will have to start all over again.

So let's say you start with $500 and win 100 pips every month for 4 months. So now your equity is $900. But in the 5th month you lose $50 or $100 or are at breakeven, you will have to go back to the 1st month and start from $500 again. That is important, you cannot ignore it coz it gets more and more difficult as the number of lots increase.

Similarly, if you have $200,000 in your account and you lose $1000 in a month, you will have to go back to $500 to start with. I'm sure many people here will say are you crazy, $1000 in a $200,000 means nothing. But guys you have to understand this, this strategy will not work for you if don't discipline yourself, ALL RULES HAVE TO BE FOLLOWED EVERY MONTH AT ANY COST.

It's difficult...but not impossible to reach there ($18m)

kevin

 

This is awesome, and it does give people hope. You dont need to hit it big everytime to make good money. Just start small and work your way up, which is the way to go anyways. But I do think that by trading minis is a misconception in this idea. Eventually most brokers require you to switch to a standard acct. I am with FXDD and at 20k they automatically switch you to standard. And from what I have read on their website is that they have an institutional trading platform for traders that have a large acct (trading 5 million and 10 million dollar blocks, this is directly from their website; http://www.fxdd.com/trading_platforms.html) So after a while you may have to switch to that. I know of a few individuals with another company I use that trade 100 or more standard lots. So if you are at the point where you need to trade this many lots, FXDD may be the place to look.

Anyways, just throwing it out there.

J

 
cementman:
i know that most of the brokers allow a maximum of 50 standard lots does any one know if there is any broker who allow more..keeping in mind the same leverage lets say 1:200...thanks

this is not a limitation at all, Why not open 2 or 3 orders with 50 lots each. It is like openning 150 lots order

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