Forex trading is considered as much harder field than science. It includes numbers, ratios and charts that are complicated to understand by most people especially those who do not have any idea what Forex trading is. If you take a closer look, it may seem very hard for you to understand what those number means and you will end up ignoring the subject matter. As a Forex trader, it is imperative that you know how to operate the business well to assure yourself that you won't lose with the competition.
Building Equity Amount of $62,500
I will add $800 as an equity amount in 1 Month
I will make $1 .....................in (1/$800) Month
I will make $62,500.............in (1/$800) x $62,500 Months = 78.125 Months
Let's convert it to year.
12 Months make 1 Year
1 Month makes (1/12) Year
78.125 Months make (1/12) x 78.125 Years = 6.5 Years.
So, do you have the patience to build this equity amount ONLY in 78 months or 6 and half years?
Alternatively, you can start with much bigger principal investment.
In any circumstances, master these fundamental concepts on money management.
No wonder more than 95% of the trader fail to obtain fulltime forex trader status because of the following reasons...
- They are under capitalized.
- They are over exposed to the risk.
- They lack experience.
- They lack education.
- and finally they lack the patience to build buffer amount and equity amount.
Building Equity Amount of $62,500 Under 1 Year
We need to build buffer amount of $62,500 from our unknown principal investment under 1 year (=12 Months).
In 1 Year (= 12 Months) I need to build buffer amount of $62,500
In 1 Month (=4 Weeks) ..............................$62,500/12 = $5,208.333
In 1 week (=5 trading days).........................($5208.333/4) = $1302.08
In 1 trading day ...................................($1302.08/5) = $260.42
Let's check back...
= $260.42 x 5
= $1302.1 x 4
= $5,208.4 x 12
= $62,500.8
So in order to become fulltime forex trader I need to make $260.42 per day as a buffer amount. How much do I need as a seed money?
GoalBuffer Amount Goal: $62,500 in 1 Year
Buffer Amount Goal: $260.42 in 1 Trading day
Again, my daily, weekly and monthly PIPs goal is 20 PIPs, 100 (20 x 5) PIPs and 400 (20 x 5 x 4) PIPs respectively.
