I would like to present a trading plan to achieve 1000% growth in equity in 13 months.
Requirement- Any day trading strategy which can make only 10 net pips a day(50 net pips a week or 200 net pips a month for swing traders will also do)
Leverage - 10 to 1 i.e Trade a standard lot of $100,000 for equity of $10,000. Every month the equity will be increasing by 20% of the previous month (assuming 10 net pips per day for 20 working days). Similarly the trading lot will be increasing by 20% every month.
Table showing the details of the equity and trading lot per month is as under-
*For calculation purposes, I have taken 1 pip= $10 for a standard lot of $100,000 which is generally true for major currency pairs. Also the trading lots are not exactly 10 times the trading capital of the month. They have been rounded off to the nearest ten thousand.
Thus by using the same trading strategy each month and only increasing the trading lot we can achieve a growth of 1000% on our equity over a period of 13 months. This plan makes use of the tremendous power of compounding. Many economists and mathematicians have rightly called compound interest as the one of the greatest mathematical discovery of all time.
Basically we are re-investing the profits of previous month into our capital of next month. Similar strategies are used by famous investors like Warren Buffet who never gives dividends to his investors, but re-invests his profits to achieve further growth in the capital.
So friends, if you have any trading strategy which gives you only 10 net pips per day and have discipline to follow this plan for 13 months, then you too can definitely achieve this growth.
Also, if you carry on like for another 13 months, the equity will cross the magic figure of 1 Million Dollars (around $1179400).
And any of our friends whose strategies can guarantee them more than 10 net pips per day, can achieve even greater rate of return on their equity.
But the purpose of using 10 net pips per day is to show that we do not need to make hundreds of pips per day/week to achieve such growth.
So good luck to you all and hope you all have fantastic returns in your trading.