How Much Balance To Gain $2000 Monthly?

I don't think a fix percentage or fix number is possible. Trading for income is extremely stressful and might make you desperate if you are late on your goals.

Its true.
Go check the scalping with high leverage thread.

I have made 1k to 13k in 5 trading days, trading 1lot pr 1000eur in account, based on 1min charts with bigh picture planning!

A system is only as good as the trader who trades it.

Take a paintbrush for example, some become artist, and some 'only' write with it.

Thank you for the info.
Could you give me the link to the thread, please?

That I agree whole heartedly. Thank you.

Thank you for the insight.

Thank you for your reply.

Hey,

There is no thread. i trade pure PA trading with big picture looking.

Having $2000m monthly for a newbie is not totally impossible. However, alot of liquidity and discipline is required.
Firstly, as a newbie, do not aim at making more than 10% of your equity or you start putting yourself under pressure.
So if the profit you aim at is $2000 that means you will need to fund your account with $20,000.
You need to have a proven strategy which you have to stick to and also practice strict money management

Here is what I don't understand.
People here are saying it's hard to make 20-30% a month even for pros.

Okay so here me out. I'm still a newbie but i've gained a good amount of knowledge in this market.

Say you have a $2000 dollar account. Every day you go for one trade.

4 mini lots.
And you aim for 10 pips. Every day when you hit the 10 pip mark on a trade you exit out
Cashing in about $40.
$40/$2000= 2% of your account.

And you should also only be risking about 2% of your account on every trade. But once you get 1 trade with 10 pips you're done for the day. If you repeat this process everyday( ONLY ON TRADES THAT THERE IS A VERY HIGH PROBABILITY OF WINNING), can't you simply make %90 of your account value in a month?

And once you double the money you simply double the amount of lots. This keeps the risk at %2 and the profits at %2.
Please tell me if there is anywhere where i'm messing up on this!


Edit: Leverage is also about 1:40

If this is how you think you should really get a better education.
Risking a certain percentage of your account on every trade is absolutely stupid and the reason people do this is because it's easy and they probably didn't backtest their strategy so they don't have the numbers to calculate their position sizing properly.

Another thing... This 10pip target is stupid. Why limit yourself? Why limit your earnings? If you're going to trade a setup and you know it has an edge why not take all the trades for that setup that you can? You won't always get 10 pips a day either some days will be bad and others will be good.

Yes it is hard to make 20-30% and I would even say that 3% per month is an average trader and 5% per month is a good trader.
The people that make these huge amounts per month are usually not consistent, over leveraged, taking huge risk, only getting lucky, over trading, etc.
There are of course rare cases in which traders do make those amounts but it's still hard to do it consistently.
So yes 3%-5% per month is considered a good trader.

Also just because your risk is 2% doesn't mean that your profit will be 2%.


-AntiVi

You don’t have to go for the numbers lets say 2000 in a month. This will only distract you stress you more and you wont be able to focus on the reality. You take what the market gives you and stay focused. You can manage your Risk though, but not the expectancy of winning.

20K minimmum if you are an experienced trader.
Regards!

It's amazing how people in one thread talk about why 95 % (which is a ball park figure) lose with talk of too large leverage, not enough money, bad trading plan, etc. and then in this thread say it's possible to earn 2K on average by DOING EXACTLY THAT! What?!

No, just no. He is talking about 2000$ every single month. He basically is asking what is needed to do this is professionally. Doing this professionally means doing this for 10, 20 or even 30 years. One musn't kid oneself. Doing this professionally means also withdrawing and paying bills, living expenses, holidays, etc.

1. Forget about risking more than 2% to 5%. You are dead in the long run if you do. 2% is a good figure, maybe 3%.
2. Cut losers. Hard and fast. You aren' going to catch the trend 9 out of 10 or enter at the top or bottom of a ranging market, so don't even believe you can let a loser run beyond your 2% to 3% initial risk cause if you do, you are in for a lot of pain.
3. Stay modest, aim for 2:1 risk-reward ratio. This is based on point 2. You are a nobody in the forex market, you can't do anything, you follow, preferably as fast as possible but most of the time you won't catch most of the trending market or even a ranging market.
4. Get enough cash you can lose. Like, all of it. You shouldn't lose any sleep if you one day wake up and see all your money gone due to your own stupidity because you failed to follow your set risk limit of 2% to 3%. I speak out of experience. I lost 80% of my account (28K) after I woke up to the results of the brexit referendum. 5 months later I'm still working on earning it back using 2% to 3% risk and by neglecting my own rules from time to time I'm still at the bottom that I reached 5 months ago!

If w apply the above rules, enough starting capital for 2K/month from the very beginning (important!) probably will mean you need the following:

 

1. 50,000 USD YOU CAN LOSE
2. 2% risk = 1000 USD / trade
3. 2:1 RR and on and set an average of 30 pips that you want to risk. If the market moves 30 against you, chances are high you were wrong and you will just waste time waiting for it to revert back. You can of course set a larger range but more than 40 is pointless.
4. 1000 USD / 40 pips = 25 USD/pip (or 2.5 lots) => 40 x 2 ( i.e. 2:1 RR) = 80 pips; depending on the market you can aim for a bit more, but most of the time you are best with not more than 100 pip. 100 x 2.5 lots => 2500 USD profit/winning trade.

The above is assuming you follow the rules. I'm taking 2.5K/winning trade cause you'll have losing trades and sometimes a losing streak of 5 if not more. Heck, even better would probably be 5K/winning trade as you will need to withdraw cash every month for expenses. This puts your staring capital at 100K USD.

To summarize, don't even think about starting if you want to earn 2K/month immediatly and don't have AT LEAST 50,000 USD! Do you have that at least? Great you can start and if you follow the max risk rule of 2% you'll be earning a living within the year if you are consistent!

Don't believe me? Fine, do whatever you want, but I can guarantee it that will be back to your 9-5 job before end of year 2017.

Edit: The 2% is because the market indeed doesn't care about you. But exactly because of that you need to limit your risk. It's one of the few things you have controle over. You don't know whether a trade will be a winner or not. It's best to make sure that in case it's not, you don't lose it all. It can be a bit more from time to time depending on how the market is, but DO NOT think that you will survive long if you consistantly risk more than 5%, let alone 10% or more.

I have noticed here that no one is considering risk in their calculations. And that is a bad mistake. We have all done the spread sheets where if one can only make 1% per day, in a couple of years we are millionaires...what that is contingent on a big IF. The truth is, no matter what your goal, 1% per day, or 20% per month, there WILL be a time when you do not make that goal, and worse you will move backwards because of losses. It is the nature of this business. To not consider that is a huge mistake.

So if you are complete beginner I would say this should give you an idea of the path you might consider to making your goal of $2,000 (I assume USD) per month:

1. Find a methodology that has an edge. This must be a definable edge across several years of data. This step alone may take you years to find and refine. (It took me the better part of a decade).
2. Once you have established an edge you will find that this edge has a certain percent win/loss rate. Many express it as a percent of win...52%, 65%, etc. This conversely means that same edge has a loss rate of 100-(win rate percent).
3. You must now take your LOSING rate and calculate your risk on each of those losers. Say you risk $100 on each loss, and have a losing rate of 40%. That means for every 100 trades (statistically speaking) you will lose $100*40 losing trades = $-4,000.
4. BUT, you will also have a win rate that you hope to gain at least twice what you risk. So if you risk $100 you want gain $200 on each winner to balance your losers. Some people try for a risk-to-reward of 3:1 or even more...it depends on how your methodology works and the market conditions under which it was designed. All of these are variables that cannot be calculated definitively, but we will assume you get a perfect 60% over those same 100 trades. $200*60 winning trades = $12.000.
5. Now you must subtract your losers from your winners which brings you to $8,000.
6. The next thing is in what amount of TIME can this be done? Well that depends again on your methodology. Do you trade large time frames or short ones? Is your strategy contingent on certain market conditions like trending conditions or ranging conditions? How often does an opportunity (as defined by your methodology) present? And finally...do you, or can you calculate the "random" nature of wins and losses? Meaning, how will your methodology deal with a cluster of losses, and/or winners?
7. Once you have all these questions answered, THEN and ONLY THEN can you begin to calculate, your capital requirements...how much in terms of cash or % of account are you willing to risk on each trade? How many open (at risk trades) are you willing to have going simultaneously? If for example, you decide to risk $100 per trade, and you decide that only 1% risk is reasonable, AND you only want to have one open (at risk) trade at a time, then you will need at least $10,000 capital to fund this method. As well, if your method only trades once per week, then to make $2,000 per month, you will need to have more capital as your opportunities must make $500 per trade to make that goal.

Can you see what I am talking about...it isn't just a simple spread sheet calculation of "how much capital do I need to make $ x.00/month?" It has much more to do with your method, and how you trade, as well as what conditions you trade under, and above all...whether the market conditions are presenting for your edge to work.

All of the above being said, the one and usually the killer of most of the traders here, is...do you have the discipline and mental fortitude to act on your edge EACH AND EVERY TIME it presents an entry or an exit? All the above is nonsense and void, if you, YOU, cannot execute your trading edge as you need to. This is the truly incalculable variable. You may have a great edge but if you don't execute it correctly, all your planning and calculation are nullified. This is the part where no one can help you. YOU must find it in yourself to have faith in your edge and take each opportunity robotically. As well, YOU must be able to accurately asses changing and dynamic market conditions in real time and decide whether those condition are conducive to your edge. Often time you have a few seconds to do this (if you trade extremely small time frames)

I'd say you have a few more years of work ahead of you.

"I lost 80% of my account (28K) after I woke up to the results of the brexit referendum. 5 months later I'm still working on earning it back using 2% to 3% risk and by neglecting my own rules from time to time I'm still at the bottom that I reached 5 months ago!"

Sorry to hear about you loss. Most people are usually too ashamed or still in shock to tell anyone.
But, I have to point out that a 2% to 3% risk (more or less) always results in an 80 % loss (more of less) .... it's just a matter of time.

Hey Mingary...don't beat yourself up too badly...we've all been there...mine was the unpegging of the CHF from the EUR. I had to sell my house, my car, my motorcycle, and my wife (kidding)...to recaptialize. But I learned from the experience and have since improved my execution as well as how much I leave at risk over the week end. As well, I have now learned NOT to put all my trading capital in one account.

Sincerely hope you get it all back... with interest and then some..

I guess you didn't read my post then

Well, losing is also part of life. It's money that I didn't want to lose but I wasn't dependant on it.

Intersting to read, but could you please also explain why you say this?
In my post I stated that you should only risk about 2% to 3% and have a 2:1 RR ratio (at least). This should result in a positive expectancy even if you have a los level of 60-70%. I guess 2:1 might be a bit low, lets say a bit more, 2.5:1.
You basically need to be (even a little) worse than a coin flip, have at least 2:1 RR and only risk 2% and you will never lose your entire account.

Sources:
https://2ndskiesforex.com/trading-st...u-should-know/
https://2ndskiesforex.com/trading-st...-risk-of-ruin/