It needs a detailed report of ur actual and budgeted expenses per month or per year. You also need to calculate the average percentage return you have made in the past (longer trading history gives better idea).

So first you will budget your expenses. (lets say $2k per month)
Then you will calculate the average percentage return per year that you can make. Divide it by 12. (assume it 5% per month)

So you will actually need

($2000 x 100/5) = $40000

I have excluded leverage but it can be adjusted according to ur trading style.

Thanks uniquetrader,

that sounds quite good, I was thinking to maybe have a fix reserve for not depending from trading at all for at least 6 months.

but your approach also look reasonable. I guess the main challenge will be the pressure while trading!

Cheers

David

Originally posted by uniquetrader

It needs a detailed report of ur actual and budgeted expenses per month or per year. You also need to calculate the average percentage return you have made in the past (longer trading history gives better idea).

So first you will budget your expenses. (lets say $2k per month)
Then you will calculate the average percentage return per year that you can make. Divide it by 12. (assume it 5% per month)

So you will actually need

($2000 x 100/5) = $40000

I have excluded leverage but it can be adjusted according to ur trading style.

Mathematics Rules. That was a good way to expalin. But it needs a very close look at everything. We have to start with low investment and gradually increase it to rely on it. It is hard to say when can we rely fully on forex to live a good life. Its not about investment or capital. It is about the high risk that forex trading naturally holds.

I agree however the good thing is that you don't need the same initial investment for as an example a bar. I mean maybe a bar is less risky but you need to invest 100k one off while with forex you can. Really start from little and don't need to have a big initial investment! Cheers David

One of the big advantages of forex trading is its leverage. You can start with low investment and can take full advantage of its leverage. But it can be a big disadvantage too :).

But as we r assuming incase of profitable trading, leverage thing really allows u to start with very low investment to make big returns.

Reassuring! :) thanks

Originally posted by davidalfonsi

quick question: How much money do you deem enough to start trading full time?

 

I had a serious though about it and came to the conclusion that most of the money you need is just for your personal living. Here is my though:

* I would need 50k€ just for personal expenses (one year of living and not depending from trading)

* I would need much less to trade since I can benefit from the Broker Leverage, let's say.. 10k€.

 

Are these figures making sense to you? and if not, why?

Cheers

David

 

Isnt it risky to rely only on forex trading. I think it is veryyyy risky. A little capital in forex is ok but we cannot rely on it. Are u really planning to quit ur job and invest everything in forex...

Hi Sasha, that was my intention. I think is risky if you are seeing Forex as a roulette.. but if you are scalping and tackling supply and demand zones with a good money management, then the risk become less :) I have been on forex for the last couple of years and saved couple of years of savings... plus no kids so far and... dunno better now than never no? :)

For me, I would need $30000 to trade for a living risking only 2% on each trade.

As I am now with scalping and only trades during the 1st 2hours of the session, I would risk $600 (2% of $30k) with lot size 10.0 and at least 5-6 pips TP. SL is well taken care of.

Having said that, I need to have 100 consecutive losing trades before blowing up my account and getting to $30K level is still a long journey for me.

Originally posted by richdadfx

For me, I would need $30000 to trade for a living risking only 2% on each trade.

As I am now with scalping and only trades during the 1st 2hours of the session, I would risk $600 (2% of $30k) with lot size 10.0 and at least 5-6 pips TP. SL is well taken care of.

Having said that, I need to have 100 consecutive losing trades before blowing up my account and getting to $30K level is still a long journey for me.

 

Your scalping results are nice so far. Normally it depends on our SL strategy, but I think a winning percentage of more than 75% will produce positive results for a scalper. Your winning is 92%. Do u use any EA?