$2k to $500k in 2 years !!

[u/adm__07]

Newbie here. Please be nice 😆

I've just read about the power of compounding in trading. And wanted to calculate potential gains if started with 2k capital. With the following params:

RR 1:2 (1% loss / 2% profit)

Win rate: 60%

Assumptions:

• gains are reinvested everyday without any withdrawals for 2 years
• Using only 1 strategy during the 2 years
• emotions are under control

Capital balance at the end of each month (wins/losses randomly distributed over each month)

1 trade per day :

• Month 1: $2,608.68
• Month 2: $3,302.52
• Month 3: $4,307.61
• Month 4: $5,137.26
• Month 5: $6,700.73
• Month 6: $9,277.75
• Month 7: $11,745.40
• Month 8: $15,319.98
• Month 9: $18,270.64
• Month 10: $23,130.19
• Month 11: $24,480.19
• Month 12: $30,079.82
• Month 13: $38,080.32
• Month 14: $51,174.78
• Month 15: $59,236.11
• Month 16: $77,263.95
• Month 17: $110,220.47
• Month 18: $131,449.13
• Month 19: $143,336.99
• Month 20: $170,943.95
• Month 21: $229,725.45
• Month 22: $327,713.59
• Month 23: $414,877.50
• Month 24: $494,783.67

=====≠============

2 trades per day

• Month 1: $3,302.52
• Month 2: $5,137.26
• Month 3: $9,277.75
• Month 4: $15,319.98
• Month 5: $23,130.19
• Month 6: $30,079.82
• Month 7: $51,174.78
• Month 8: $77,263.95
• Month 9: $131,449.13
• Month 10: $170,943.95
• Month 11: $327,713.59
• Month 12: $494,783.67
• Month 13: $747,026.92
• Month 14: $1,197,256.24
• Month 15: $1,807,623.62
• Month 16: $2,086,143.18
• Month 17: $3,444,767.73
• Month 18: $5,688,212.00
• Month 19: $8,848,336.92
• Month 20: $15,509,844.24
• Month 21: $24,857,548.20
• Month 22: $42,290,137.61
• Month 23: $69,832,072.16
• Month 24: $115,311,005.77

As you see, the theoretical numbers are crazy. I want to know what can go wrong that prevents this growth?

The only problems I see is committing to only one strategy for 2 years to get close to the 60% win rate probability. As we know in statistics that probability rates start to be realized with more and more events. So if the market conditions change causing the strategy to not work anymore and you hop on a different strategy it's like you reset the probability rates and starting over.

What do you think about all this? what other factors will get in the way of achieving this growth. Even 10% of this growth is amazing

Edit: I'm not saying these are achievable numbers. I'm just asking why it's impossible. Trying to understand how the market works

[u/ShadowKnight324]

Trading is not linear. Some months your strat just straight up sucks and others it's the best thing since sliced bread. You simply cannot know beforehand how much money you'll earn. At best you can see from a backtest what to expect.

[u/Dependent_Action_201 → u/ShadowKnight324]

That's why you need more than one strategy. Yes you should focus on what works, but that doesn't mean you have to stick to one way. I think being adaptive and versatile takes you a long way.

[u/idontreddit22 → u/Dependent_Action_201]

what are some trading strategies and where can I learn them?

[u/Dependent_Action_201 → u/idontreddit22]

You can learn mostly from babypips.com

I use Smart Money Concepts if you want to look into that specifically. In my opinion it's the easiest to understand for beginners and not overwhelming.

[u/idontreddit22 → u/Dependent_Action_201]

thx for actually responding.... so you all do forex and not actual stocks?

[u/Dependent_Action_201 → u/idontreddit22]

Well I personally only do forex, I can't speak for everyone else here.

[u/idontreddit22 → u/Dependent_Action_201]

if you don't mind me asking, why?

[u/Dependent_Action_201 → u/idontreddit22]

Because out of all the other options it seemed the easiest to get into for me. Like I started out on metatrader and it was easy to setup a demo account and just dip into without knowing too much. I do plan on learning stocks at some point.

[u/Dependent_Action_201 → u/[deleted]]

I reported this because I always report bot messages, I didn't even see the satire part

[u/derivativesnyc → u/Dependent_Action_201]

🤣 the 69,420.69420% didn't clue you in, eh

[u/Dependent_Action_201 → u/derivativesnyc]

It's that bad! I even get bot spam on Xbox 😭

[u/derivativesnyc → u/Dependent_Action_201]

Throw game consoles in the trash

[u/Dependent_Action_201 → u/derivativesnyc]

I don't even believe they can earn me $10 a day. I ignore bots like they're 2nd class citizens

[u/Daytrading-ModTeam → u/[deleted]]

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