Heres a question

This is a discussion on Heres a question within the First Steps forums, part of the Reception category; I'm new to forex and would like to do it fulltime when I move to a different country, maybe later ...

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Old Apr 1, 2008, 12:48pm   #1
 
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Heres a question

I'm new to forex and would like to do it fulltime when I move to a different country, maybe later this year.

If I have £10,000 in a forex account, and assuming i follow the basic rules of trading, how much could I 'realistically' make per month? Same for £50,000 & £100,000

Also Iíve read that you should never use more than 1% and/or 5% of you funds - now is this 1% and as soon as it loses you another 4% close the deal making 5% in total or 5% of the pot and the risk is then up to me? hope that makes sense.

From what I have read I think I am in-between day trading and position trading ie. I look at the charts etc and decide to get in and out at certain levels, this may take an hour or two-five days to do but hopefully I come out on top. Do you think this is ok for a newbie or should i look at more real position trading? I am using FXCM for trades at the moment and demoing oanda at the same time only taking bigger trades due to the pot size of their FXGAME. (also looking at another recommended by TRO)

many thanks
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Old Apr 1, 2008, 12:57pm   #2
 
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How much can you make?

This is probably one of the most asked questions and the answer is the same everytime: no one has any idea. It depends on how much you risk, what you trade, how often you get setups and how you manage the positions you take in terms of running profits and cutting losses.

Regarding risk management - 2% is regularly quoted as being the maximum amount to risk per trade.

In my opinion, it is not that simple and depends on how much you have in your account, what you trade, your style of trading and your system expectancy.

You will soon find out there are no right or wrong answers.
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Old Apr 1, 2008, 1:02pm   #3
 
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montpro started this thread Many thanks Trader_Dante

Hhhmmm, ok lets say I would like to make an extra £1,000 per month - from what I have learnt I feel its all down to having a trading plan, very strict discipline and having a large enough pot to begin with. On that basis what size pot (assuming I follow all the rules) would you recommend as a minimum requirement.

I am only trading currencies at the moment and daily as I don’t have much on. I am constantly reading and learning.

Also do you have a goal each day/week/month and once you've hit it you take the rest of the day off?
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Old Apr 1, 2008, 1:18pm   #4
 
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Originally Posted by montpro View Post
Many thanks Trader_Dante

Hhhmmm, ok lets say I would like to make an extra £1,000 per month - from what I have learnt I feel its all down to having a trading plan, very strict discipline and having a large enough pot to begin with. On that basis what size pot (assuming I follow all the rules) would you recommend as a minimum requirement.

I am only trading currencies at the moment and daily as I don’t have much on. I am constantly reading and learning.

Also do you have a goal each day/week/month and once you've hit it you take the rest of the day off?
If you want to make an extra £1,000 per month then I would say you need £10,000 to begin with. That way you need to make 10% per month.

However, while this is reasonable for an experienced trader you should be aware that if you are a beginner it will be very, very hard to achieve this.

You will find many obstacles in your path and the biggest one will be YOURSELF.

I don't have a day/week/month FINANCIAL goal other than trying to make sure that I end each day/week/month in PROFIT.

I do, however, have a DAILY LOSS LIMIT. This is set by the prop firm I work for and is a very good risk management tool. It makes sure that we cannot lose more than a specific amount and stops revenge trading which is where you try and get "even" with the market and make back what you may have lost in a trade (s).
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Old Apr 1, 2008, 1:26pm   #5
 
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montpro started this thread OK, good advice - set a daily loss limit.

Whats is London Prop Traders Group? and can anyone join or is it for the 'elite'?
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Old Apr 1, 2008, 1:48pm   #6
 
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OK, good advice - set a daily loss limit.

Whats is London Prop Traders Group? and can anyone join or is it for the 'elite'?
It's a group for traders that are working for Prop firms in London
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