Thread: How Much Balance To Gain $2000 Monthly?

Originally Posted by ;

I think U need at least $10,000 Account Size with 1:200 Leverage. Twenty percent profit a month is huge. Really difficult to achieve. Think that 10% to 20 percent per month, which could be over 120% to 240% per year. The best of the best earn 20-30% per year, which is quite high. Every traders asserts that to be making this, and more but no one can prove it via confirmed statement, which is so tough to reach, but it's always possible.

Lol

Just because you can't it does not mean it cant be done



OP
there's no standard to that.

It all comes down to you your entrances exits.

You can flip 500$ to 2000$ monthly every month
You can make a 2 percent on 100k account
or 20 percent on 20,000 account

Therefore,first of all you need to understand your egy results first,then compute cash management.

Originally Posted by ;

quote I guess that you didn't read my article then

No offense intended ... I Âdidn't see how your article was likely to be specific to calculating the particulars of win vs loss and how to use those figures into the stated goal of $2,000 each month . Â
Â
Sorry I'll pay more attention next time . Â

Originally Posted by ;

quote No offense meant ... I Â didn't see how your post was likely to be particular to calculating the specifics of triumph versus reduction and how to use those amounts to the stated goal of $2,000 each month . Â Â Sorry I'll pay more attention next time . Â

Hehe no worries.
Risk management is very easy yet very few folks on this forum do it correctly.
Also if he would like to make 2k per month it's calculated very easily.
All he needs to do is check the egy he's trading.
He then can see just how much he stands to gain or lose.
Then he needs to look at his best drawdown and calculate lot sizing using that and the potential risk he would like to take.
Then he needs to subtract the expense of trading in the last outcome and there he will have it.
His profit potential.
On top of that you're able to set a cash management egy behind it.

Meaning he can adjust his risk % to some stage where he profits 2k a month and decide for himself if the risk is worth the reward.

Most folks just say Risk 1% per trade bla bla bla and that absolutely annoys me. It is the take or how the lazy. It is easy but you don't wind up understanding your maximum risk. Which means that they could just throw most of their account down the drain.

Depends upon your monthly gain goal and risk reward ratio.

Formula will be:

2000 / yearly goal% = essential capital

hope it'll help.

If ur egy does not have more than 3 consecutive losses then $1000 equity is sufficient to make $2000 per month

Originally Posted by ;

quote Well, losing is also part of life. It's money that I didn't need to lose but I was not dependant on it. quote Intersting to see, but could you please also explain why you state that? In my article I said that you should only risk about 2% to 3% and also have a 2:1 RR ratio (at least). This should lead to a positive expectancy even if you've got a los level of 60-70%. I guess 2:1 might be a bit low, lets say a bit more, 2.5:1. You basically have to be ( a little) worse than a coin flip, have 2:1 RR and only risk 2% and you will never...

IMO, The RR ration is useless since it creates a forecast based on past data and it implies using hard stops. Yet, risking to the stage that any single trade is insignificant is your way to conserve the account. Then you can start trading your account fairness rather than your account balance.

Yes, it is likely to earn $1000 to $2000 a month but you needed strong egy and focused mind which can bring you right commerce for getting high profit together with market.

Originally Posted by ;

quote IMO, The RR ration is futile since it creates a prediction based on past data and it suggests using difficult stops.
But risking to the stage that any single transaction is insignificant is your way to preserve the account. Then you may begin trading your account fairness rather than your account balance.

My article says that you can risk roughly 2% of your entire balance. I state a R :R of 2:1 to have a decent return that also provides reassurance. It does not necessarily imply a tough stop since I never given your minimum lot.
I only provided lot dimensions earlier as an example for a trade so it is easier to grasp what I supposed.

Say you have 50K, 2% of 50K = 1K maximum loss for your commerce.
Then based on your stop that, according to the rules of your plan, is put below the low of the previous dip. This is for example 10 pips, therefore you are close to the bottom.
1K/10 signifies 100 USD/pip =gt; 10 lots.
2:1 risk min signifies 20 pips profit target, maybe 25 again based on your egy.
Say you win, that's 2500 profit.

The next trade you input may require a stop of 30 pips.
52500x0.02 = 1050 USD maximum loss.
1050/30 pips = 35 USD/pip =gt; 3.5 lots.
30x2 = 60 pips target estimate =gt; 60x35 = 2100 USD possible profit
.
.
.
Etc..

But matters like your stop and tp will depend on your egy. Nonetheless, in general I recommend at least 2:1 RR and a tight sufficient stop because most of the time you will notice if you are correct fairly quickly.

P.S.: RR may ofcourse be ignored if you cought a fad and Can ride it

To really make $2000 monthly, there is not really any conventional balance you should have. Everything you more importantly need is expertise; how great are you with your trading system in addition to how effective your risk management clinic?

I have seven years challenging experience, the number u r asking been shing for me very year. Now I do know I want at least 50000 to make $2000 monthly.