$500 to $18m in 5 years...fact or fiction? - page 5
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Hi all,
VERY IMPORTANT NOTE: The following is just a theory. In reality, it might be extremely difficult, if not impossible, to execute it in live trading without the enemies of trading getting involved, i.e. Greed, Fear and Hope. But nevertheless, it is possible.
I've been around in this forum for quite some time. And I see most people trying to make a system tht should generate 1000 pips or 2000 pips per month, and try to enter every possible move. But the fact is, if you want to make $18m in 5 years, all you need is discipline and 100 pips per month. Don't believe me? Read on....
Assuming that there are 20 trading days a month, 100 pips would be an average of 5 pips per day. The choice of the system is your's. It doesnt matter if you do day trading or positional, if you do 1 trade or 100 trades, all you need is a system that can consistently make 100 pips for you every month.
RULES:
1) You need a system that can make 100 pips consistently every month per lot.
2) Opening balance would be $500
3) Trade is done only in mini lots
4) 0.1 lot is allowed for every $500 balance. So if you have $1000 you can trade 0.2 lots and if you have $5000 you can trade 1.0 lots and so on.
5) Emotions like Greed, fear and Hope have to be barred out.
6) Once you make 100 pips in a particular month, you are not allowed to trade till the month is over. So even if you make 100 pips in 2 days, you cannot trade for the entire month then.
RESULTS:
After 12 months you will have $3,100
After 24 months you will have $26,000
After 36 months you will have $230,100
After 48 months you will have $2,050,300
After 60 months you will have $18,278,700
Suprised eh?
So maybe you'd say no system can make 100 pips consistenly per month. OK, let's say if you were right. Would you agree with me that it's comparatively easier to make 10 pips per month? Even if you target 10 pips per month, you would yet end up with $1.8m in 5 years using the same methodology.
I remember Igor saying this in one of his TSR audio tutorials, trading is like painting a canvas, you should step back and try to look at the bigger picture than a trade or a single day alone. It is so true.
So get rid of your greed and trade with nothing but common sense. Plz see the attachment for the break up of gains per month.
Regards,
kevinThis is good stuff thanks for bringing this up i saw it very late this puts also discpline in trading 100 pips seems logical target for each month i will also try to incorporate this in to my trading .. in fact i am trying to gather all i can find about moneymanagement to improve my trading cause i also believe in the end the real holy grail is money management.
best regards
EACAN
That sounds a bit rude european...
2) Are you telling me there is no one in this world who owns a system that could make 5 pips a day consistently for 5 years???
5 pips a day - What an achievement!!!
If my pip is worth $1000, perhaps 1 pip is all I have to do a day
I agree it's a useless thread.
I have a similar strategy with 20 PIPS a day or 20 PIPS a trade. It will give you 400 PIPS a month, or about 1 Year 4 Month to make your 18M. But I have capped my lots to 50 maxed. So I guess 2.0 Mil per year is not too shabby either.
The worst part of the strategy is the beginning few months, I don't know how you would feel if you make only $100.00~$500.00 per month for the next 8 months following this disclipline, I would feel like a giant loser and maybe I will go out and make more money delivering Pizza.
Anyways many theories are sound on paper, but unless you can trade this with an EA, then it will be very difficult to follow, as least for me, until I am making some serious money. I think there is a hedging EA out there that would close the trade whenever there is a profit of $300 or whatever you want to set it. I think it would be great to run this strat, you got the security of hedging with the convenience of an EA, and the hope that in just 5 years your $500 will be 18 Million.
Cheers!!!
State Your Claim
This thread started by "kevmcfoster" is a waste of time and space, should be banned.
Hey European
Normally when someone bashes an "idea" or a "thought", they usually support their claim. "kevmcfoster" has provided spreadsheets and dialogue to support his idea. Where is your support...???
Compounding is the greatest tool to financial wealth and independency. Great thread!!!
Hi all,
Suprised eh?
So maybe you'd say no system can make 100 pips consistenly per month. OK, let's say if you were right. Would you agree with me that it's comparatively easier to make 10 pips per month? Even if you target 10 pips per month, you would yet end up with $1.8m in 5 years using the same methodology.
Regards,
kevinMate how do you come up with such numbers? Starting with 500$ 10 pips per month after 5 years ends up with 1.8m?
I would say 1.800$.
Mate how do you come up with such numbers? Starting with 500$ 10 pips per month after 5 years ends up with 1.8m?
Please read post#1.
This is compound strategy, and I am using it on my EA.
Finding a low commisssion, honest broker to make that strategy work would be a main obsticale to making this a go. Most like to trade against their clients or leave them at the bottom of the fill first list.
There is one factor that was not included that slows down acquisition of wealth. It varies for each person......it's taxes!!!!
It's not about 5 pips a day or 100 a month all the guy is saying is proper money management and compounding can do miracles even if you're not making 10000000s of pips a day !!!
Holy Gail
Hi all,
VERY IMPORTANT NOTE: The following is just a theory. In reality, it might be extremely difficult, if not impossible, to execute it in live trading without the enemies of trading getting involved, i.e. Greed, Fear and Hope. But nevertheless, it is possible.
Happy! Joy!
Try to buy a million dollar house...
A week later I found the back testing was set to control point!
Search continues ....