If you were an above average trader with a $200,000 account, would it be safe to say that I could grow this account to $500,000 within a year. I know is a broad scenario, since I hear, and I personally know traders that have lost entire accounts. But given good money management and skills, is this a tangible assumption?
using 5:1 leverage trading $1million lots, you need 250pips/month average over 12month period omitting rollover and interest. I think this is achievable to some traders using a DEFINED TRADING PLAN.
$100 pip is certainly not for novice traders. Try with $20000 to $50000 over the same period to see how difficult it can prove.
If you are above average trader you should find 250+pips/month achievable.
On the other hand, are you willing to risk it all.
Why not allocate some of the funds to managed funds with a reputable track record?
Trade consultant,
What type and/or system of trading do you use? I am new to this and I have been using simple trendlines and chart patterns with below average success.
Thanks in advance!
Andy
I have been seen that a lot of traders only go for a few pips a day (5-20 pips). If my calculations are correct 5-20 pips is not much, unless by PIPS they are referring to something else. If you are trading 1 contract that it is $53 to $212 profit. And assuming that most traders trade an average of 5 contracts that is not much. TradeConsultant, wouldn't catching one big move in the week be better than a few points a day? Personally, I have seen traders get 100 to 150 points in a week in a couple of trades and it would add to more than a few points a day in profit. If you want you account to grow wouldn't that be a better approach to growing it while minimizing your exposure?
To turn 200k to 500k is not the biggest issue. I have often by now doubled my account a few times through a trendy trade. This again depends highly on your exposure and risk profile.
To do this consistently is normally more of an issue. I have found that traders are like trends - they go through bad patches as well. Those traders with established and refined trading disciplines will pull through when market conditions line up with their disciplines, and take a break when conditions start to fail them.
Should the trader opt for a signal and system-based methodology, and - and that is more often than not the big challenge where most fails - consistenly manage the trading environment to obey the methodology consistently, even with the use of junior traders as "spotters", then depending on the methodology, one can most certainly expect decent returns. This is especially true should the chief trader be well travelled on the rocky roads of loss-control . . . .
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