Friday, August 15, 2008

Business Plan

To demonstrate how my goals are very conservative here is a generic 3yr plan.
This will demonstrate how a conservative approach on how compound interest can turn into a huge amount. The focus is 15pips a day. In this case the 15 pip goal a day stays consistant, but the value of the pips changes over time to match the 5% risk per trade the first year, 1% risk per trade the second year, .5% risk per trade the 3rd year.
Risk per trade is the amount of money I leverage per trade and am willing to lose per trade to make a gain.

Generic 3yr plan.
starting balance $5k
daily goal 15pips @ 5% risk
monthly salary = 33% profits taken for cost and living expenses
profits = trading account

1st yr @ 5% risk per trade = 532k trading acct, 258k income
2nd yr @ 1% risk per trade = 1.285mi trading acct, 290k income
3rd yr @ .5% risk per trade = 1.1mi trading acct, 255k income

The 250k pls a year is to put me in the top1% of earned incomes. Basically more or less, in actuality I do not plan on withdrawing even 30k the first year as I want my trading account to grow exponentially early to allow me to lower risk faster.

Note the goal of this post is to demonstrate a conservative approach to risk can allow one to trade safely with measurable goals yet make an enormous amount of money if compounded over time. It is a given some days I will make more pips and some days less pips, but all in all a step by step approach will win the day. Note I still am aiming for 50pips a day averaged out over a month. The 15pip goal was to demonstrate small appreciable goals the turtle makes beats the hare.

1 comment:

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