I'd really just echo the last post. Yes it's true with leverage and compounding it's possible to make an almost inconceivable amount of money trading forex, and it's a wonderful business. But the flaw in your thinking is that you are not taking into account when you LOSE. That $100 per pip works the same way to the bad as to the good, and it doesn't seem you've really considered that.If I wanted to operate a sandwich shop in my neighborhood, I'd have to invest no less than $400,000 and maybe 2-5 years before I began making annual profits of $80,000 - $100,000. That would also require 60-70 hour work weeks including Saturday and Sunday.
Let's say I have a forex investment fund of $100,000 and I trade using 25% of my investment fund ($25,816 of margin). At 50:1 leverage that makes each pip worth $100. If I follow Henry's advice and garner 150 pips worth of winning trades each week for, let's say, 45 weeks (we take 7 weeks vacation); if we do this, then let's look at the possibilities.
If I garner 150 pips weekly for 45 weeks in a given year at $100 a pip, then I'm looking at an annual return on investment of $675,000 or 675%.
If I should leverage at 100:1 then that doubles the results.
Profit of $1,350,000 ROI of 1350%
If I should leverage at 200:1 then that doubles the numbers again
Profit of $2,700,000 ROI of 2700%
or, finally, the unspeakable possibility...
If I should leverage at 400:1 then the previous numbers double again
Profit of $5,400,000 ROI of 5400%.
Furthermore, Mr. Liu, Henry, has shown us that by successfully using additional strategies, it's possible to garner far more than 150 pips. Let's say double that...maybe 300 pips for an experienced, savvy trader.
Please, someone "show me the errors in my analysis" "show me where my math is misleading" "show me the mistakes in thinking". Otherwise, I'm going to spend the rest of my life trying to test the analysis above.
Please, I'd welcome your comments
My friends, unless I'm wrong, we've found the pot of gold at the end of the rainbow, we've discovered how to turn lead into gold, we have discovered the American Dream. This is why I get up at !:00 AM, well before the London open, to scrutinize charts, read news brief and create a trading plan for the upcoming day ...on my practice account...
What other business provides such an opportunity as this one...please show me?
It's easy to be giddy and floating on the clouds when everything goes well, but it doesn't always go well, and any trading methodology involves wins AND losses. If you don't believe me, ask Henry. As I'm sure you can see here, people are swinging from the chandeliers right now after a good week of earning pips. Nothing wrong with that; I've been there. But the danger is to assume that there will only be winning trades, no pain, and it will always be this easy. Trust me: it won't be. If it was, wouldn't we all be billionaires by now? Especially those of us that have been trading for a few years?
Of course, I was told the same kind of thing when I started out, and I didn't listen; I had to learn the hard way. But if you can take at least some of this kind of feedback to heart, it will likely save you some heartache. There's some good advice in the post above by digital soul; I'd listen to it. Although not so sure you need to take 2 years demo trading first, maybe 6 months, but that's up to you of course...