Any young newbie traders out there?

[vette74]

I amin Houston as well. Almost in Galveston. What side of town are you on?

I am in the Heights area lived in Houston most of my life except my stay at A&M. I have been just now getting into it and have been following this thread http://www.moneytec.com/forums/_showthread/_threadid-8759/showthread.php?s=&threadid=8759&perpage=8&pagenumber=52

Very interesting.

[leonardb]

Originally posted by merlin63
Knocks420,

I'm on the east coast, located in PA.

merlin, where in PA .. i'm in PA myself..

[merlin63]

Leonardb, I'm about 20 miles outside of Philadelphia.

[leonardb]

merlin,

ok i'm in the poconos ..


Regards,


Lenny

[slayerbizkit]

I'm 18 and in college studying to be an accountant. My friend/mentor has been trading for 7 years and he is teaching me everything he knows right now. He is a very short term trader, grabbing alot of tiny pips here and there 18 hours a day. I tweaked his system to something somewhat more daily, so I can actually have a life and get away from the computer for a couple of hours.

On average, I make about 80-150 pips per week. Beats working at McDonalds but I haven't gotten to the skill level yet where I can make serious money off of this.

[knocks420]

80-150 pips a week? If your still in college, thats enough for beer money and thats some serious money.

Ask your friend/mentor for a loan and you can start trading multiple lots, that 80 - 150 pips can turn into a few thousand a week and you can forget about college.

Would you be willing to give us some info on your system?

[mahras]

BTW I would like everyone to take a look at my trade recommendations. Hopefully I can make you some money. If you have any questions and would like to ask for help regarding updating or modifying your system just PM me or IM me.

Good luck trading!

[OneClickAway]

This post is dedicated to John since you have many more years experience than I in the financial markets. There seems to be a great deal of difference and speculation in how much a person can earn trading forex. In fact, Dr. Alexander Elder says 30% and Brain June in his book that he co-authors with Van K. Tharp says the top would be 200% annually.

So I decided to do some calculations of my own. Happy reading:

First Year Trading Budget

Capital Requirement: $3000 CAD

Pips per week expected: 25

Margin Used at OANDA: 50:1

Units able to be traded: EUR/USD 3000/1.22/1.30 x 50 X .95 = 89,800 OR
Units able to be traded: GBP/USD 3000/1.22/1.88 x 50 X .95 = 62,100 OR
Units able to be traded: USD/CHF 3000/1.22/ x 50 X .95 = 116,800 OR
Units able to be traded: USD/CAD 3000/1.22/ x 50 X .95 = 116,800.

Units needed for $1 USD change in profit/loss per pip:
EUR/USD and GBP/USD = 10,000
USD/CHK 10,000 X 1.186 = 11,860
USD/CAD 10,000 X 1.22 = 12200

Value per Pip: EUR/USD 89,800/10000 = $8.98 USD
GBP/USD 62,100/10000 = $6.21 USD
USD/CHF 116,800/11,860 = $9.84 USD
USD/CAD 116,800/12,200 = $9.57 USD
Average Value per Pip Traded = (8.98+6.21+9.84+9.57)/4 = $8.65

Profit per Week: 25 pips X $8.65 X 1.22 = $263 CAD
Weekly % ROI = 263/3000 = 8.7%
Profit per Year, using 50 weeks and compounding weekly @ 8.7% = $194,356

Note: Substituting 100 pips per week in the above scenario, the last three lines would look like this:

Profit per Week: 100 pips x 8.65 X 1.22 = $1055 CAD

Weekly % ROI = 1055/3000 = 35%

Profit per Year, using 25 weeks and compounding weekly @ 35% = $5.4 Million

Making 5.4 Million Dollars from $3,000 in 25 weeks trading anything is totally unrealistic, so there is a major error in this calculation somewhere, but I don’t know what it is.

Footnotes:

1.22 USD/CDN Exchange Rate
1.186 USD/CHK Exchange Rate
1.30 EUR/USD Exchange Rate
1.88 GBP/USD Exchange Rate
.95 is amount of capital able to be used keeping a buffer to prevent margin calls
Assumptions (a) Present Market conditions would be available for the next 50 weeks
(b) all profits are reinvested into capital available for trading (c) exchange rates would not change significantly (d) trader consistently trades for those 50 weeks.