Do you think it's possible to turn $1,000 into $10,000 by trading the Forex market?
That’s the question…
Or else, Do you think it's possible to become a full-time professional trader with a low start off base, looks like a thousand dollars or even five hundred dollars?
I think there are three schools of thought to this.
Because of all the gurus that say: give me 2000$ and join me to become a successful full-time trader, your first thought is to say “yes, you can”.
The second school of thought are those that say, “no it's not possible”. The statistics attest that 95% of all retail traders fail in the forex market, so why bother in the first place, right ?
Lastly, the third school of thought. And that's exactly what you are going to be interested in.
If you ask me I would say yes, it's possible to make $10,000 profit with a $1,000 trading account. However, it all depends of course on the risk that you're going to be taking.
You may get lucky one month but it's extremely unlikely, if not impossible to achieve that type of return, month after month. Also, I think the most common reason that so many people fail in the forex market is that they shoot for these kinds of returns to achieve unrealistic goals.
You need to think outside of the box and to set yourself aside from all those failed traders.
Think for a moment of the hedge fund manager. They would give their right arm for gains of 20% or 25%. Assuming, of course, they're not taking risks of 50 % or hundreds to achieve those gains.
Just check out on Google last year's best-performing hedge fund manager and you'll see the best performers table, where 20% will be at the top.
Now, ask yourself a question: Do you think you are able to achieve 1% or 2% a month with a similar risk? That sounds very achievable, right?
1% a month equates to 12 an hour per cent over the year if you compound that up. 2% a month would be 25% for the year. Let's assume that you can match the top hedge fund traders. You will get a monthly return of less than 2% a month on your training account of, let's assume, 20% from consistent monthly gains. On the $1,000 trading account, that would be a profit of 200$ and for sure you're not going to be able to live on that.
If you can prove that you're able to make consistent gains over one or two years, I can promise you that friends, families, financial institutions will be throwing money at you to invest for them. Raising capital is a lot easier than you may think.
Here is a word for you: M.A.M, who stands for “Multi-Account Manager”, a trade copying service for companies such as ourselves. We'll raise capital from other investors and your trades will be matched to those investors trading accounts. Then you'll take a performance fee for the profits achieved.
Let's assume you've got 20 investors, each with $100,000. That's a two million dollar fund. If you can make a 20% return on capital, which is $400,000, you're taking a 30% performance fee.
With a solid track record and proof that you can return consistent monthly gains to the risk taken, you could be on your way to a very lucrative trading career. Frankly, it is the only way to make a substantial living starting with a very small trading account.
When you're starting with a $500 account or a $1000 account, don't think you're giving up your day job for that. Think long term, at what you're going to be doing in a year.
Every trade should be risk-controlled, control your motion and your discipline, grow that account over time. We certainly would love to hear from you.
I hope you have found this valuable and if you would like to learn more, join me in the Trading Room. I hope to see you there!