Money management - 1 percent profit per day, 20 percent profit per month. - Page 2
Page 2 of 19 FirstFirst 12345612 ... LastLast
Results 11 to 20 of 187

Thread: Money management - 1 percent profit per day, 20 percent profit per month.

  1. #1
    Trader
    Join Date
    Aug 2018
    Posts
    2,122
    Thumbs Up
    Received: 8
    Given: 7

    Money management - 1 percent profit per day, 20 percent profit per month.

    Everybody knows that good money management is the key to success. But has anybody calculated how good money management can help to earn money?

    For example, we have 100 dollars deposit and it means that to earn 1 percent we need to earn 1 dollar. What does it means 1 dollar? It means that we trade with 0,01 lot and earn only 10 pips. Such target of 10 pips will be very low, everybody will say, because market moves easy 10 pips any direction. But such target is low risky too.
    So we have 20 trading days per month and it means that account will increase by 20 percent per month.

    If there is 1000 dollars deposit so we can earn the same 10 pips using 1 order with 0,1 lot or 10 orders with 0,01 lot. It is easy and there is good money management.

    The question to traders: Do you think if it is good to earn 1 percent per day or do you have to earn more than 1 percent per day?

    Not allowed!
    Last edited by Rola; 04-07-2019 at 09:25 PM.

  2. #11
    Trader
    Join Date
    Nov 2017
    Posts
    5,282
    Thumbs Up
    Received: 34
    Given: 86
    I have read different possible way the trader can actually make use of the risk management. From what I have learned about the market. I think the trader should make the risk percentage per trade. That means, taking 2 percent risks per trade, it will make more sense that way and then also, the trader should also trade with the use of the less trading method and only go for quality trading.

    Not allowed!

  3. #12
    Trader
    Join Date
    Aug 2018
    Posts
    2,122
    Thumbs Up
    Received: 8
    Given: 7
    I have noticed that if I use big size lots so my profit target is less pips than I use small size lots and I can leave the orders for all day long. There is another thing that if I use big size lots so I sit in front of screen and watch the movement. If small size lots are used so I leave the computer and do not care about the results. Finally results are better with small size lots.

    Not allowed!

  4. #13
    Trader
    Join Date
    Sep 2017
    Posts
    8,764
    Thumbs Up
    Received: 58
    Given: 130
    Quote Originally Posted by Rola View Post
    I have noticed that if I use big size lots so my profit target is less pips than I use small size lots and I can leave the orders for all day long.
    I think that is your emotions playing tricks on you, if you want to really get to make money from the market. Be the sort of trader that gets to do things that will not get you emotional. Trade with little risks, I personally think that is what we all need to do, we don't have to take too much risks in the market. Using huge risks is going to cause us some bad trading approach.

    Not allowed!

  5. #14
    Trader
    Join Date
    Jul 2017
    Posts
    4,292
    Thumbs Up
    Received: 17
    Given: 1
    Quote Originally Posted by Rola View Post
    I have noticed that if I use big size lots so my profit target is less pips than I use small size lots and I can leave the orders for all day long. There is another thing that if I use big size lots so I sit in front of screen and watch the movement. If small size lots are used so I leave the computer and do not care about the results. Finally results are better with small size lots.
    Big lot size always makes people to exit their trades quick because if they remain in the market, there might be a spike that would cause some losses, the better strategy is using small lot and allow the trade to naturally play out, the higher the lot, the more uncomfortable we become, so making one percent each day will give us some space to breath well while we trade, it will not make us do things out of pressure.

    Not allowed!

  6. #15
    Trader Senorita's Avatar
    Join Date
    Jun 2016
    Location
    Africa
    Posts
    7,494
    Thumbs Up
    Received: 119
    Given: 73
    The over all target is 20 percent of profits and I think it could be somehow limiting to be targeting just one percent of profits on each trading day. Since the target is one percent it will be hard to even make up to 20 percent monthly because there are times we should expect loss too in our trade. I understand the reason for this target is to see we follow a good money management plan but this could be better with the right risk to reward ratio.

    Not allowed!

  7. #16
    Trader ara's Avatar
    Join Date
    Dec 2013
    Posts
    1,834
    Thumbs Up
    Received: 106
    Given: 184
    Quote Originally Posted by Rola View Post
    For example, we have 100 dollars deposit and it means that to earn 1 percent we need to earn 1 dollar. What does it means 1 dollar? It means that we trade with 0,01 lot and earn only 10 pips. Such target of 10 pips will be very low, everybody will say, because market moves easy 10 pips any direction. But such target is low risky too.
    So we have 20 trading days per month and it means that account will increase by 20 percent per month.

    If there is 1000 dollars deposit so we can earn the same 10 pips using 1 order with 0,1 lot or 10 orders with 0,01 lot. It is easy and there is good money management.

    The question to traders: Do you think if it is good to earn 1 percent per day or do you have to earn more than 1 percent per day?
    It's not as easy as what you count, even though only getting 0.5% per day is not easy, you don't talk about the risk side, making profit in forex is very easy, even making 100% profit per day is not difficult. The difficult thing in forex is how we get out of the loss zone, overcoming draw downs is not an easy thing. many traders are stressed and frustrated when dealing with drawdowns.

    Not allowed!

  8. #17
    Trader Toyen's Avatar
    Join Date
    Apr 2018
    Posts
    7,692
    Thumbs Up
    Received: 40
    Given: 13
    The trader that will work with 1% money management must be a very rich traders, that is what will encourage this kind of trading plan. I don't like it personally, and the least money management which i can use no matter the amount i have in my trading account is between 3-5%, that is what i know that will give me the best results at all time. But for traders to be using that low money management and expect 20% profit in a month is not feasible.

    Not allowed!

  9. #18
    Trader ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    8,262
    Thumbs Up
    Received: 47
    Given: 20
    Quote Originally Posted by Runner View Post
    This is very good technique and you add example of very good money management i personally like to work with the such ideas which will improve our profitability by simple approach in this situation we have to avoid losses by any mean because if we collect like 1 dollar each day we have to take our risk smaller because if we take higher risk that may wiped our whole money profits .
    All I can say with this kind of forex techniques is that it will be hard for forex traders to be faithful to this kind of method. Forex traders have bills to pay, they will not make much income if they are trading with a ridiculous money management, they will not be able to enjoy their trading too. In fairness of forex trading, it is more appropriate to trade with a very low money management, but it is the forex traders who will suffer it in the end.

    Not allowed!

  10. #19
    Trader
    Join Date
    Jul 2017
    Posts
    2,770
    Thumbs Up
    Received: 11
    Given: 8
    Quote Originally Posted by Senorita View Post
    The over all target is 20 percent of profits and I think it could be somehow limiting to be targeting just one percent of profits on each trading day. Since the target is one percent it will be hard to even make up to 20 percent monthly because there are times we should expect loss too in our trade. I understand the reason for this target is to see we follow a good money management plan but this could be better with the right risk to reward ratio.
    It is good to have earning target and it is some kind of motivation. I have a goal to end day in profit sometimes I earn 10 percents per day sometimes 1 percent on my little account. But I think that 1 percent per day can be minimum target and there is possibility to earn more. But lets say 1 percent per day is good but 5-10 prcents are better.

    Not allowed!

  11. #20
    Trader
    Join Date
    Jul 2017
    Posts
    8,577
    Thumbs Up
    Received: 32
    Given: 22
    My dear, your evaluation of the market is good in term of money management . I quite agree with you that if we manage our trading capital very well , then we have a very bright future in the forex market . But what you have done here is what i will refer to as paper work which might not work out in the forex market . You see analysis lie this is easy to do on paper, but the real thing is when we get to the main market . Have you forgotten the place of loss in the market , that you can not just be earning like this for 20 days without a loss?

    Not allowed!

Page 2 of 19 FirstFirst 12345612 ... LastLast

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •