I always like to make a planning of my future income (possibilities).
So far I have kept my planning simple with just job income and investments and expenses. Sounds simple, but everything is adjusted for taxes etc so it's kind of realistic.
For instance I would run sensitivity data on % of job income as expenses, to see the effect on future wealth and income. or What happens if you take % of your investments + job income and use that as expenses. So you get the idea what I'm trying to do.
I just implemented a Forex income stream in my spread sheet with the following characteristics
- Use % of investment capital for forex trading
- Set a max % risk per trade and divide that through 50 pips
- For E/U this is your lot size and use that for the rest of the year to make pips monthly
- And an increase in 'skill' of so much pips per month.
In my financial planning with Fixed Expenses and adding
10% of investment capital used for forex trading, using .04 lots and making 200 pips per month, with yearly 10 pips extra per month.
It will more than double my income and future wealth over a period of 20 years.
I think I have been conservative enough in my estimations. No crazy and scary geometrical growth in trading accounts or inhumanly performance.
Question is, is this realistic?
So far I have kept my planning simple with just job income and investments and expenses. Sounds simple, but everything is adjusted for taxes etc so it's kind of realistic.
For instance I would run sensitivity data on % of job income as expenses, to see the effect on future wealth and income. or What happens if you take % of your investments + job income and use that as expenses. So you get the idea what I'm trying to do.
I just implemented a Forex income stream in my spread sheet with the following characteristics
- Use % of investment capital for forex trading
- Set a max % risk per trade and divide that through 50 pips
- For E/U this is your lot size and use that for the rest of the year to make pips monthly
- And an increase in 'skill' of so much pips per month.
In my financial planning with Fixed Expenses and adding
10% of investment capital used for forex trading, using .04 lots and making 200 pips per month, with yearly 10 pips extra per month.
It will more than double my income and future wealth over a period of 20 years.
I think I have been conservative enough in my estimations. No crazy and scary geometrical growth in trading accounts or inhumanly performance.
Question is, is this realistic?