Skip to main content
- If you consistently return 6% per month you will more than double your account in a year. Using a 30 pip stop, you would only have to earn 23 pips per week and less than 100 pips per month to achieve this goal.
- Every small incremental move towards your end goal is a positive.
- Trading is not a race, it is a journey that you should be enjoying.
- To make a very respectable 10% per month using a 30 pip stop per trade and risking 2% per trade, you would only need to make 38 pips per week. 10% per month nearly triples your account in the span of a year.
- These figures are all assuming that you are hitting these numbers consistently and you are not paying taxes out of your trading account.
- If we take these same trades while reducing our stop loss to 20 pips instead of 30 pips, then we would only need to make 100 pips per month to earn 10%. The would reduce the 38 pips per week needed down to a mere 25 pips.
- When we reduce the stop loss down to 15 pips, we would only need to make 19 pips per week or 75 pips per month in order to make a 10% return in one month. It is certainly possible to do this.
- All this is done by spending a little more time on accuracy and reducing the stop loss. Nothing else changes.
- If you can't do 23 pips a week or 90 pips a month using a 30 pip stop, then don't think for a moment that you can do it with a 15 pip stop. You need to be able to grow into it and it doesn't take long to do that. It only takes about 6 months.
- If you can make 6% consistently for 6 months, then the only thing you need to change is your stop loss amount.
- The only thing you are changing is the math.
- 20% per month is very phenomenal. If you want to make this much per month with a 30 pip stop loss, you would need to make 75 pips per week or 300 pips per month.
- If we reduce our stop loss required to 20 pips, then we would only need to make 50 pips per week or 200 pips per month to net a 20% return in a month.
- If we trim our stop loss to 15 pips per trade, then we would only need 38 pips per week or 150 pips per month in order to net a 20% return in 1 month. We are using a day traders model for entry in this scenario.
- 30% per month is absolutely astronomical. In order to accomplish this with a 30 pip stop we would need to make 113 pips per week or 450 pips per month.
- If we trim our stop loss to 20 pips, we can accomplish 30% per month by making only 75 pips per week or 300 pips per month.
- If we trim our stop loss to 15 pips, we can accomplish 30% per month by making only 56 pips per week or 225 pips per month.
- Starting with a $5,000 account and making a consistent 30% per month, you would be at millionaire status in less than 24 months.
- If you can make 56 pips per week you will be able to hit the 30% return per month mark.
- You need to find a trade that is 4/1 reward/risk ratio each week to 30% in a month using a 20 pip stop.
- We like to round our support & resistance levels to institutional levels which is every 20 pips, but we can also use the 5 levels as well.
- Below is an example of a GBP/USD trade that could have given you an 8/1 reward/risk ratio using a 15 pip stop loss.
- You don't need to shoot for the stars, you should be focusing on 4/1 reward/risk setups and that is wealth building. That is highlighted in the image below. 4/1 setups builds millionaire's.
- This was all done inside of 1 day.
- The daily and weekly charts are most important charts because those are the charts that the institutions tend to focus on.
- It is a very important lesson to be able to recoup losses you had in a week even if you don't end up making any money on the week.