Forex trading education - Simple Mathematics
Lets see what happens if I succeed in one transaction which is one more success in my favor, let's do some simple mathematics.
We spoke about 12 profitable transactions against 10 losing ones, right?
12 profitable transactions multiplied by 100 pips gives 1200 pips in a month. 10 losing transactions multiplied by 100 pips gives 1000 pips. in a month.
How much is 1200 minus 1000? 200 pips. We will subtract the commission (the spread) that I paid to execute the transactions - 3 pips times 22 transactions is equal to 66 pips of commission.
The total collective gain is 200 pips, minus 66 pips of commission, we earned 134 pips in a month.
I want to claim the following: if you will learn Euro, if you learn technical analysis, understand the important data which affect the Euro, you will get used to it, and then once a month you will succeed more than a five year old. If it wasn't possible we wouldn't have taught it to you. If it doesn't work out for you, stop trading. It appears that you didn't understand that if the graph is rising and are told to buy, you need to buy. It appears you didn't understand that if the bank's governor raises the interest rate, the currency will rise. But if you were successful and understood, then you have 134 pips in a month, by working 10 minutes a day, that's all.
Let's translate it into money: You have 10,000 USD in your account. Let's assume that you start with a transaction of 30,000 Euros (3 fold leverage) for this transaction each pip is worth 3 USD.
3 USD times 134 is 402 USD. 4.02% return. In a year it comes to 48.24 percent. By risking commission alone!
And what if you attain more experience and knowledge and have 13 profitable transactions in contrast to 9 losing transactions and not 12-10? It's already a 96.5% return yearly. Do you know of any investment with such a return? Because I - really don't.
Whats Next?
* What amount should you invest?
Or go back to the Education index
We spoke about 12 profitable transactions against 10 losing ones, right?
12 profitable transactions multiplied by 100 pips gives 1200 pips in a month. 10 losing transactions multiplied by 100 pips gives 1000 pips. in a month.
How much is 1200 minus 1000? 200 pips. We will subtract the commission (the spread) that I paid to execute the transactions - 3 pips times 22 transactions is equal to 66 pips of commission.
The total collective gain is 200 pips, minus 66 pips of commission, we earned 134 pips in a month.
I want to claim the following: if you will learn Euro, if you learn technical analysis, understand the important data which affect the Euro, you will get used to it, and then once a month you will succeed more than a five year old. If it wasn't possible we wouldn't have taught it to you. If it doesn't work out for you, stop trading. It appears that you didn't understand that if the graph is rising and are told to buy, you need to buy. It appears you didn't understand that if the bank's governor raises the interest rate, the currency will rise. But if you were successful and understood, then you have 134 pips in a month, by working 10 minutes a day, that's all.
Let's translate it into money: You have 10,000 USD in your account. Let's assume that you start with a transaction of 30,000 Euros (3 fold leverage) for this transaction each pip is worth 3 USD.
3 USD times 134 is 402 USD. 4.02% return. In a year it comes to 48.24 percent. By risking commission alone!
And what if you attain more experience and knowledge and have 13 profitable transactions in contrast to 9 losing transactions and not 12-10? It's already a 96.5% return yearly. Do you know of any investment with such a return? Because I - really don't.
Whats Next?
* What amount should you invest?
Or go back to the Education index
