How much you make per month

[slyone]

Hmmm. 200% per month consistantly on average? That means if you started with $1000 and reinvested profits for 17 months @ 200% per month then you'll have $129 billion after 17 months:

$ 1000 * (3.00)^17 = $ 129,140,163,000

Noooooooooooo

[FerruFx]

Even a consistant 5-10% per month is enough to make a living with trading. Then why overleveraging and try to make more. Be patient, disciplined and don't be greedy is the key to success.

FerruFx

[slyone]

Originally Posted by FerruFx

Even a consistant 5-10% per month is enough to make a living with trading. Then why overleveraging and try to make more. Be patient, disciplined and don't be greedy is the key to success.

FerruFx

Correct. I developed a system recently that has a high percentage win but the risk/reward ratio is small. After extensive research on what money management to use on this system, it was concluded that I should risk about 70% of my trading balance per trade. This would give the best results without drawdown being so much that a recovery was impossible.

However, which human could risk 70% on a trade, lose 70%, and act as though nothing happened the next trade. No one. Survival is the priority, profits are secondary. Choose a risk factor of 1-4% per trade, accounting for any gaps etc. The stop loss must be predetermined before entry so that you know how much to leverage. Eg. if the stop loss is 20 pips away, and you want to buy 100,000 then if the stop loss is 40 pips away you should only buy 50,000. Don't worry about the irregularity of profits, the regularity of losses is more important to focus on (meaning if you want to risk 1% per trade, make sure you lose 1% everytime, not 1% sometimes and 5% other times etc.)

I wish everyone the best.

[FerruFx]

slyone,

I can't agree more. Newbies must print this post and put it in front of their eyes close to their screen.

FerruFx

[golhuntsleep]

Originally Posted by FerruFx

Even a consistant 5-10% per month is enough to make a living with trading. Then why overleveraging and try to make more. Be patient, disciplined and don't be greedy is the key to success.

FerruFx

I make 5-20% month in, month out there is an occaisional bad month, that is more than made up for with the 20%+ months .....making it in the forex is a daily grinding it out. trading when there is a trade and sitting on your hands when there is not......it is easier to make 10-20% per month trading 10 times per month, than if you try to do it trading 30...patience and money management....

[FerruFx]

Originally Posted by golhuntsleep

I make 5-20% month in, month out there is an occaisional bad month, that is more than made up for with the 20%+ months .....making it in the forex is a daily grinding it out. trading when there is a trade and sitting on your hands when there is not......it is easier to make 10-20% per month trading 10 times per month, than if you try to do it trading 30...patience and money management....

Exactly.

FerruFx