Forex Help Forum Archive for 05/26/2005

Los Teques 17:34 GMT May 26, 2005
Subject: Forex Profits... Reply   
What kind of returns traders get over a year period?

I read that over 20% per year can be considered as a very good year...

Other people says that they can get 20% monthly... even 300% monthly?

It's possible to make 20% monthly on a consistently way? month after month?

I read too about teams of traders making 5%-6% monthly (consistently)... it's possible?

What do you guys think about this quote:

Quote:
"You know what NET DEPOSIT, is? the initial sum you enter into account, yeah?
OK...
lets suppose, based on my PROVEN strategy of NFP straddling technique that others have tried and done will with, turns over 20% a month, to start.. and see what happens on the 7th month of compounding...cool?

$100k balance.
70% risked... 400:1 leveraged account = 25 pips made = 70% of balance.
lets suppose we don't want to risk that much, ok? and head for 20% of balance, cool?
25 pips at 20% of balance traded = 100% of that cost of trade (20% risk)...
return = 20k
balance = 120k ==> month 1.

month 2, 20% of balance (120k) = 24k, 25 pips made = 24k
balance = 144k (44% in two months net return)

month 3, 20% of balance (144k) = 28.8k, ==> 28.8k made on 25 pips.
balance = 172.8k (72.8k net profit)

month 4 = 20% of balance (172.8K) = 34.56k.
balance = 207.36K

month 5, 20% of balance (207.36K) = 41.47K
balance = 248.83K (148.83K profit) or 41.47% NET PROFIT that month.

month 6, 20% of balance (248.83k) = 49.77K
balance = 298.6K (198.6K profit) or 49.77% on NET PROFIT for that month.

then from there on in, bearing in mind that 25 pips ONLY is needed to be made to earn 20% compounded on balance via 400:1 leveraged account... is:

month 7 = 20% of balance (298.6k) = 59.72K
balance = 358.32K (258.32K profit) 59.72% per month profit.

If you stepped this up to 40%, or 60% of balance, 300% per month is attainable.

summary...
50:1 200 pips is needed to make 100% of what the trade cost you.
100:1 = 100 pips is needed to make 100% of what the trade cost you.
200:1 = 50 pips is needed to make 100% of what the trade cost you.
400:1 = 25 pis is needed to make 100% of what the trade cost you.

most brokers use 100:1 and very low risk, eg, 1% of balance.

Enjoy the power of compounding and leverage."


THANKS.

London Misha 15:57 GMT May 26, 2005
Subject: Reply   
Jay, could you kindly pass on my email to ' London KH ' .
T I A

Rye, NY et 01:25 GMT May 26, 2005
Subject: Reply   
OK,great..........I thought that's what you were thinking....Good Trades

Seattle cc 01:23 GMT May 26, 2005
Subject: Reply   
Okay got you!! Appreciate the response and understand because yes that's what I was thinking with the parabolic SAR so now I understand what you mean by SAR :)

Thankyou!!!!

Rye, NY et 01:20 GMT May 26, 2005
Subject: SAR Reply   
HI...................
Re: your question about SAR............
Please excuse me if I misunderstood your question, but KL and I have both posted in the last couple of hours the letters: "SAR"
If that is what you are referring to, then it's not the Parabolic SAR indicator we're talking about, but the acronym SAR, which stands for "Stop and Reverse" or what we used to call a "Double Stop"; meaning to change the direction of your position instead of stopping it out.........Again, if I misunderstood you, I'm sorry....(Don't mean to patronize you, if that's not what you meant.) GL/GT

Seattle cc 01:13 GMT May 26, 2005
Subject: Reply   
im here

Rye,NY et 01:07 GMT May 26, 2005
Subject: Reply   
Seattle cc 00:33 GMT May 26, 2005
Let me know, if you're here........