250 pips profit per month-realistic?

[Scotty2Cues]

Hi,

Is this realistic with 3-5 trades per month (weekly/daily TFs). Waiting for high probability set ups. Will risk 2% of capital and use 50 pip trailing stop - so aiming for average of 10% profit per month.

Thanks!

 

[shadowninja]

Depends on your entry, doesn't it? If you enter with guru-like precision, you'll make 250 on one trade. The thing is, the markets will not give you the regular source of income you get from paid employment.

 

[Scotty2Cues]

Depends on your entry, doesn't it? If you enter with guru-like precision, you'll make 250 on one trade. The thing is, the markets will not give you the regular source of income you get from paid employment.

ok, but only taking high probability trades, is 250 a month (on average) possible or if you like, 3000 a year. Dosent matter about regular income..

 

[shadowninja]

Can't see why not. As I say, depends on your entry. If you take high probability trades, defined as 90% trades result in a profit of at least 1 pip with a trailing stop), but there's a small chance of taking a 50 pip loss that happens twice in the year, you might only break even. Without seeing your system in action, over a few months, it's hard to tell. You cannot just plug in figures like 90% and 50 pip stops and targets of 200 pips. There's no equation to guarantee an end result in trading. I know it doesn't help, but the only way is to backtest then forwardtest.

 

[elitejets]

Sigh ... It depends on your market too ... not all pips are created equal.
You might want to look at a % return on what you risked.

 

[N Rothschild]

no its not realistic. when you first start out in trading you are going to lose, alot. your going to lose so much you never want to lose again. then you will quit and never know what could have been

 

[Ambrose Ackroyd]

Crap advice and just not necessarily true.

 

[Scotty2Cues]

Sigh ... It depends on your market too ... not all pips are created equal.
You might want to look at a % return on what you risked.

EUR/USD using Jackos trading strategy. 50 pip trailing stop. I read that when there is a strong trend, can make 100-150pips a trade. So 5-10% profit a month seems possible risking 2% a trade

 

[N Rothschild]

ah if only it was that easy

 

[Ambrose Ackroyd]

It is definitely not easy but you most certainly are not destined to lose a lot of money either.

If you possess half a brain ( which sadly most traders do not ), then you can learn and trade at the same time, lose a little, make a little and eventually start making a lot.

But you do need to be disciplined, smart, cool and have the F.Y. factor.

 

[shadowninja]

EUR/USD using Jackos trading strategy. 50 pip trailing stop. I read that when there is a strong trend, can make 100-150pips a trade. So 5-10% profit a month seems possible risking 2% a trade

Ah, well, it definitely works. If you trade just going off trend lines, in a decent market you can make quite a few pips eg September to November last year it ran up a channel nicely, bouncing off the lower trendline a few times BUT he was using 100 pip stops for 2008 and 2009 IIRC as the market was more volatile. As for how many pips, that depends on how you manage the trade. He doesn't use an automatic trailing stop so there's going to be a bit of discretion and luck involved as he also doesn't sit at the PC staring at the charts all day waiting to move the stop up at the slightly twitch of the market.

 

[elitejets]

Are you going to join Jacko's group?

The issue is the same for all new traders starting out. You could be given a strategy that makes 100% a month on a silver platter and you won't make any money with it. Why? Because trading is 1% entry and exit strategy and 99% emotional discipline.
Once you get yourself a trading plan and a strategy, if you are very focused and disciplined in your approach, use sensible risk and you stick to the plan then you have every chance of doing well.
Good Luck

 

[Scotty2Cues]

Ah, well, it definitely works. If you trade just going off trend lines, in a decent market you can make quite a few pips eg September to November last year it ran up a channel nicely, bouncing off the lower trendline a few times BUT he was using 100 pip stops for 2008 and 2009 IIRC as the market was more volatile. As for how many pips, that depends on how you manage the trade. He doesn't use an automatic trailing stop so there's going to be a bit of discretion and luck involved as he also doesn't sit at the PC staring at the charts all day waiting to move the stop up at the slightly twitch of the market.

ok thanks. Think Im gonna join his private group. Thinking of also using J16 for the other markets, grade A setups only though. Demo trade until im profitable for 2 or 3 months.

 

[Scotty2Cues]

Are you going to join Jacko's group?

The issue is the same for all new traders starting out. You could be given a strategy that makes 100% a month on a silver platter and you won't make any money with it. Why? Because trading is 1% entry and exit strategy and 99% emotional discipline.
Once you get yourself a trading plan and a strategy, if you are very focused and disciplined in your approach, use sensible risk and you stick to the plan then you have every chance of doing well.
Good Luck

Thanks.
Yes am gonna join. When I first started looking into trading I didnt know where to start with strategy/markets etc. I started with Trader_Dantes thread which helped immensley. From that I found J16 and then I found Jacko thread. I started to get confused again with all the different options. You mentioned Strat's thread and that made things worse (as its also sounds great)

Will demo first with Jacko and also J16 (on grade A setups) until profitable. Then Ill deposit a small amount. Im definitely focused and disciplined and will use sensible risk. If it does work then I would seriously consider trying to raise some hefty capital.
Still need to decide on a broker though....

 

[shadowninja]

ok thanks. Think Im gonna join his private group. Thinking of also using J16 for the other markets, grade A setups only though. Demo trade until im profitable for 2 or 3 months.

Initially, it's easier to just focus on one style until you're proficient in it. Otherwise, you'll get confused with looking for different things.

 

[shadowninja]

Still need to decide on a broker though....

While you're small, I don't think any broker/spreadbetter is going to care what you do. Alpari: ~5p/pip, IG Index: 50p/pip, Oanda: ~1p/pip. People also argue that if you're swinging like Jacko, then they won't care either because if you got good, they'd be easily able to hedge your trades (compared to a news scalper who is in and out in the blink of an eye and taking 20-50 pips a time).

Later on, you could consider going to Interactive Brokers.

 

[tderrick]

ok thanks. Think Im gonna join his private group. Thinking of also using J16 for the other markets, grade A setups only though. Demo trade until im profitable for 2 or 3 months.

Oh, go for it... With the advent of micro accounts, there is no reason not to learn on real
cash... just stay by your rig and protect your account.

Your mind set is completely different and you truly learn when you loose a few bucks..


I stayed on demo just long enough to learn the software, then I funded and was off.

At the worst I was breaking even and I've just started out.... :clover:

Only one way to get that Bentley, baby!!!

 

[Scotty2Cues]

Initially, it's easier to just focus on one style until you're proficient in it. Otherwise, you'll get confused with looking for different things.

Yeah thats what I think but I couldnt decide on which one. The thing that concerns me about Jacko's method is that, although he trades off the charts, he uses fundamentals to understand the bigger picture. I havent a clue about that but he says its all in his forum and I can learn.

 

[shadowninja]

Try this load of videos. 570 odd I think. http://www.youtube.com/user/futuresanalysts

Don't forget your earplugs.

 

[tderrick]

At the worst I was breaking even and I've just started out.... :clover:

Only one way to get that Bentley, baby!!!

Damn... I hope that didn't come off as being cocky!! I'm certainly not...

It's just a market that is easy to get started in without losing a lot of $$$$...

Now... Making a living out of it appears to be a whole different game!!