What is wrong with this way of thinking?

Discussion in 'Forex' started by SimpleTrades, Nov 4, 2011.

  1. We all see arguments about how you need large amounts of capital to really generate a living from trading.

    What if my goal is $150/day? Is this an unrealistic goal?

    I trade with FXCM. I like to trade CFDs.

    1. I start with $3000.
    2. $2000 is set aside to purchase the contracts.
    3. $1000 is used as a monthly stop loss.
    4. $100 daily stop loss.
    5. I have the ability to replace the monthly losses indefinately.
    6. Profits are withdrawn at the end of the day if there are profits.

    3% rule on $2000 is $60. $2 refundable deposit buys me the right to trade one ounce of gold, for example, at cost of 50 cents. 60/2 = 30 ounces of gold is my maximum exposure. In most cases my actual exposure will be much less than this. Actually, on average I trade 3 ounces of gold at a time. So, change in equity is $3 for every $1 change in the price of gold.

    Is it really unrealistic to create $150/day out of this?

    Confession: Lost $102 today on the usdollar (not really a CFD, or is it - not sure.)
  2. I highly recommend you go for non-monetary goals. Like simply trying to execute only trades within your plan (and none that violate your trade plan) regardless if they are profitable or not.

    Consider redoing your money management strategy.

    It is a CFD.. but it's one which is derived from a product they constructed. It does not follow the balancing found existing dollar index futures products as a set by various futures exchanges (DX, dollar index.)

    Might I ask why in the hell are you trading something you don't understand?
  3. Thanks for your answer, Jack.

    I come from a background working for a Swifttrade wanabe where the initial training required $2000 profit in a month, $300/month stop, $50/day stop, on $10,000 of capital. In addition, I was required to give them two thirds of my profit. I quickly walked away from this, however I know that some do succeed with this limitation.

    Given this, what's wrong with $3000 profit, $1000/month stop, $100/day stop, and I keep 100% minus fees? $2000 of equity gives me access to a maximum of 1000 ounces of gold (for example). Clearly, I wouldn't use all of that.

    So, how exactly do you suggest I rethink my money management?

    By the way, this is critical; I strongly believe that 75% of the success in trading IS how strictly you honor your money management rules. This include profit targets, losses etc .

    I understand what I am trading; I question FXCM calling their usdollar a CFD for the very reason that you just described. It is not a very strong representation of a true basket of currencies since it weights equally only four major currencies of 4 very differently sized economies.
  4. Nothing is wrong with you.

    Of course you can make it.

    You do not even need 3.000,-

    1.000,- is enough to make 150,- a day, IF YOU KNOW HOW TO TRADE.

    The people who always say you need big money to make a living of it, are all from yesterday.

    We are in the High Levergage Margin age, where you can trade every product as CFD (so long you dont live in the USA) and FX with a 1 : 500 levergage, but 1 : 100 is standard.

    What else do you need ?

    When you have more money, you can go over to trade Futures with them higher margin requirments.

    And when you have big money you can trade Stocks without any leverage.

    So Fuck This idiots who dont know anything about the new age of trading.

    You can do it. Just do it.

    Start with 150,- a day and grow until 10k a day --- that should give you satisfaction.

    Wish u the best. Never give up the fight.
  5. Thanks for the vote of confidence! Leverage, if you understand it, is a beautiful thing!
  6. Lucrum


    Tell Jon Corzine.
  7. Yes, it cuts both ways. Fortunately, with FXCM, I can only lose the easily replaceable $3000.
  8. Lucrum


    The market neither knows or cares about your goal.
  9. Neither does the world in general. Should we therefore avoid setting goals for ourselves. You will never achieve anything in life unless you set and make every effort to achieve reasonable goals in life. A goal requires a plan and an understanding of how you are going to implement that plan.

    I ask only is my goal reasonable?

    What do you trade Lucrum? Do you support yourself with your trading?
  10. Lucrum



    Theoretically yes, realistically probably not.

    Nickel and dime FX

    My comment wasn't intended to discourage from having a goal, I just don't think you want THAT kind of goal.
    #10     Nov 5, 2011