risk management? i am not sure what you mean, but i can tell you there is no way a money management strategy is able to turn 5K into 1M in viable time frame without being back by a <b> solid and persistent edge</b>. when it comes to trading eminis which are the most efficient vehicles out there, finding such an edge that persists a long period of time is quite difficult to say the least.
For old days (1990s), 5K is next to impossible to do that. Then with the help of $500 margin, and if the OP has a decent trading method. It is not that unlikely. I think before I reply. I do not just type to waste my time. My thought process, 1. With $500 margin he has $4500 to blow. 2. A 90+% winner model, and a 2 to 3 pts stop, with potential target at or above 5 pts. 3. Frequency of trades will determine the time it takes to do it 4. Expectancy of each trade is (0.90 x 5 - 0.1 x 3) x 50 = $210 5. # of 1 lot trades it takes to get to $1 mil = 995000 / 210 = 4740 6. Should # of contracts to trade increases by 1 every 10K increase in equity, it is likely the goal is possible within a year. KEY QUESTION in my mind at the time - Does he has #2?
See my thought process in last post. It illustrated why I said 5K to a mil is possible. Then you would also understand why I said 1K to 1 mil is hard (next to impossible) because there is almost no room for losses.
Chan I thought the link was fine. nice job. But still, use your "POWER" and ban traderzones!!!!!! Public internet lynching!!! LOL
Sorry, but I'm with TraderZones on this one. For those who think trading is easy... think again. You're not betting against mere amateurs. Hitting a couple home-runs is possible... but mostly on the minds of non-professionals.