Money management - 1 percent profit per day, 20 percent profit per month.
Page 1 of 19 1234511 ... LastLast
Results 1 to 10 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 08:25 PM.

  2. #2
    Trader
    Join Date
    Aug 2018
    Posts
    2,122
    Thumbs Up
    Received: 8
    Given: 7
    This thread is from my personal experience. I have 100 dollar Pro-cent account (10'000 cents) and I usually place pending or market orders 0,1 cent lot with take profit 10 pips. When order is executed I get 10 cents. Usually I do more than 10 orders per day with 0,1 lot and have a daily profit 1 dollar. Money are litle, leverage is 1:1 or 1:10 if there are 10 orders 0,1 lot so I trade carelessly and earn 1 percent per day.

    Not allowed!

  3. #3
    Trader simpleman's Avatar
    Join Date
    Sep 2017
    Posts
    1,465
    Thumbs Up
    Received: 6
    Given: 1
    A bird at hand worth two in the bush, it is very good if we trade with low lots and we are getting our pips bit by bit, the accumulation of these would result into having big account eventually that seeking for big money with high lots that may not work for traders at the end of the day, money management play an important role in the success of traders in the Forex market.

    Not allowed!

  4. #4
    Trader
    Join Date
    Mar 2017
    Location
    Biafra
    Posts
    11,775
    Thumbs Up
    Received: 58
    Given: 20
    The problem with this kind of method is that you limit yourself to what you can earn in forex and again you shouldn't expect that all 20 trades will become profitable. When loss comes how can you manage it and what number of pips loss can you risk on a loosing trade?. These are all the question you need to ask yourself. This is why I would even accept a method of better risk to reward ratio than limiting yourself to what you can earn in a full month. Money management is important but it should come with lesser risk and higher chances of winning.

    Not allowed!

  5. #5
    Trader
    Join Date
    May 2018
    Posts
    6,459
    Thumbs Up
    Received: 38
    Given: 4
    This is one of the most beautiful ways that I know people that are successful today have made it, this risk management is the best I am not using above two percent of the account I am trading because I now have a better understanding about what it takes to become a consistent trader with good accounts history to show for it, people trade with different mindset though.

    Not allowed!

  6. #6
    Trader
    Join Date
    Jul 2017
    Posts
    4,292
    Thumbs Up
    Received: 17
    Given: 1
    The simplicity of money management is really not as easy as it sounds, you want to make money one percent per day, from my experience people that are always targeting small profit using end up with some thing way above what they have desired, the problem faced by people losing is their target that is always high and above their account balance at the time if their trading.

    Not allowed!

  7. #7
    Trader
    Join Date
    Sep 2017
    Posts
    1,769
    Thumbs Up
    Received: 7
    Given: 19
    We all have different ways of managing our investment and I don't think it would be a bad idea for us to target 20 percent of our capital on a monthly basis. If we can keep it consistent, it will be good as we can find ourselves grow overtime by compounding profits when necessary. The best way to trade good is to build a strong management trading and realize that this is how we can however make something from this trade.

    Not allowed!

  8. #8
    Trader ola4real's Avatar
    Join Date
    Mar 2018
    Posts
    8,262
    Thumbs Up
    Received: 47
    Given: 20
    Quote Originally Posted by Ulthred View Post
    We all have different ways of managing our investment and I don't think it would be a bad idea for us to target 20 percent of our capital on a monthly basis. If we can keep it consistent, it will be good as we can find ourselves grow overtime by compounding profits when necessary. The best way to trade good is to build a strong management trading and realize that this is how we can however make something from this trade.
    Yes, as forex traders, we should have our different ways of managing our forex accounts, and if that way we are using is effective to keep our account saved, we will need not to look further. Forex field has many different ways of doing things that will still yield the same results or almost the same results, the trading through the use money and risk management is example to this. But the article starter has too much low risk, I can not use his method.

    Not allowed!

  9. #9
    Trader
    Join Date
    Nov 2018
    Posts
    3,539
    Thumbs Up
    Received: 10
    Given: 2
    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 .

    Not allowed!

  10. #10
    Trader
    Join Date
    May 2018
    Posts
    6,459
    Thumbs Up
    Received: 38
    Given: 4
    With just one percent, we can achieve a lot from Forex trading, as long as we think about keeping our account at the minimal risk level, even the investment companies that we know as the hedge funds don't target so much because they have realised that trading is not always profitable, one percent daily makes this market to be less risky in many aspects. This is why trading should be done with the right mindset.

    Not allowed!

Page 1 of 19 1234511 ... 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
  •