Comments on: How Quickly Can You Make a Return on Your Investment? http://www.umttrading.com/2008/11/24/how-quickly-can-you-make-a-return-on-your-investment/ Watch Live Forex, Future and Stock Trading Results Using the UMT Mon, 07 Jun 2010 19:40:14 +0000 hourly 1 http://wordpress.org/?v=3.3 By: chris http://www.umttrading.com/2008/11/24/how-quickly-can-you-make-a-return-on-your-investment/comment-page-1/#comment-427 chris Sun, 11 Jan 2009 06:44:52 +0000 http://www.umttrading.com/?p=170#comment-427 Hi Mark, I now realize my question posted in another section would be better asked here. The week's net profit looks great and I am close to ordering your program. Can you tell me though what account size was traded to give this return in one week and what risk factor was used? I am trying to gauge an anticipated time needed to recoup costs on a $5000 startup trading forex eurusd. Thanks Chris NetPicks Reply: Everything we show is always based upon one contract of anything - not multiple contracts. With $5,000 in start-up capital, if you assume you are willing to risk a very safe 2%, or 3% at most per trade than your risk per trade is $100 to $150. From there it depends on what the average risk is per the market you are trading - lets assume in forex you look at a timeframe where the average risk is about 25 pips. That's $25 per mini contract, so in this case you could trade 4 to 6 mini contracts and still risk no more than 2% - 3%. In forex it's easy to way over-leverage -- we don't even come close to using the leverage you can trade with since typically that's a big mistake. Keep your risk per trade low, there's enough frequency of trade that you can trade safely without taking the big risks with leverage. Hope that helps. Thanks. Hi Mark,
I now realize my question posted in another section would be better asked here. The week’s net profit looks great and I am close to ordering your program. Can you tell me though what account size was traded to give this return in one week and what risk factor was used? I am trying to gauge an anticipated time needed to recoup costs on a $5000 startup trading forex eurusd. Thanks
Chris

NetPicks Reply: Everything we show is always based upon one contract of anything – not multiple contracts. With $5,000 in start-up capital, if you assume you are willing to risk a very safe 2%, or 3% at most per trade than your risk per trade is $100 to $150. From there it depends on what the average risk is per the market you are trading – lets assume in forex you look at a timeframe where the average risk is about 25 pips. That’s $25 per mini contract, so in this case you could trade 4 to 6 mini contracts and still risk no more than 2% – 3%. In forex it’s easy to way over-leverage — we don’t even come close to using the leverage you can trade with since typically that’s a big mistake. Keep your risk per trade low, there’s enough frequency of trade that you can trade safely without taking the big risks with leverage. Hope that helps. Thanks.

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