2000 Pips Per Month…would you like to achieve such a profit like that trading forex each month? Let me tell you my embarrassing story: I once traded a $8,000 trading account and within a few months, turned that account into $22,000.
The following month, I figured that I can take this $22,000 trading account and turn into $50,000 at the end of the month.
In order to do that, I have to make 2,800 pips that month.
That would be like $28,000 in forex profits to be made during that month.
So I went to trade…
And I didn’t trade small. I traded huge contracts. I over leveraged my account. And when I lost, I wasn’t losing in hundreds…I was losing $2,000, $3,000 amounts.
My mind was like in a frozen state.
Revenge trading mindset kicked in.
When I was down to $10,000, common sense would have prevailed to get back to my senses: to take a break and trade small contracts to build up my forex trading account up again.
But it didn’t.
Long story short: I busted my forex trading account.
The good thing though: before I took that $22,000 to zero, I managed to withdraw $5,500 in profits. So my forex trading loss was less $2,500.
You may read or see some traders claims online about making such insane forex profits like these:
- make 2000 pips per month (if you are trading 1 standard lot, that $20,000 dollars in profits per month)
- or make 1000 pips per month ($10,000 forex profits per month)
- or make 3000 pips per month ($30,000 forex profits per month)
Busting my $22,000 into zero in a few weeks taught me an important lesson: never have a figure in your mind about how much profit to target each month when you are trading forex. That is a recipe for disaster.
Now, let me get back to the question: is it possible to make these kinds of profits trading forex each month? I will give you my answers shortly below.
Heck! I’d Like To Make 2000 Pips Per Month Or Even 1000 Pips Per Month!
Who doesn’t want to make 500 pips per month, or 1000 pips per month or even 2000 and 3000 pips per month trading forex?
If anyone has a forex robot that can do that and I can verify beyond reasonable doubt that the forex expert advisor really delivers, I would not hesitate to put money in it.
Or if a really successful forex trader can prove to me that he achieves those kinds of forex profits per month, I also would not hesitate to let him trade my money using a system called Mt4 Trade Copying.
So the real question is: are these types of profits achievable?
The answer: yes and no.
You see, it really depends on two main things:
- Forex Trading Account Size
- Success Rate of Your Trading System
Trading Account Size Required To Make 2000 Pips Per Month
It is very hard to make 2000 pips per month if you are starting with a $1,000 or even a $5,000 trading account.
Even on my $22,000 account size, I was really stretching it and it backfired.
The only way for a small forex trading account to make 2000 pips per month is when:
- you have a really high win rate trading system and you have to do a lot of trades
- or you are really good at picking tops and bottoms or market prices and riding them out for maximum profit extraction for as long as possible.
- you take very large trading risks and you are having a string of success doing that.
- or you are really having a good string of trading success increasing your profits quite, applying pyramid trading technique so as your account size grows, you increase your lot sizes in proportion to your account size.
On the other hand, If you are blessed with a lot of money for forex trading, making 2000 pips or even 5000 pips per month is not a very difficult thing to do.
Well, let me give you an example.
- Lets say that you have a $100,000 forex trading account.
- You risk only 2% of you trading account each trade you placed($2,000 risk).
- You see a sell setup on EURUSD and using the Trendline Trading Strategy, you managed to sell at the very top of the market with a 20 pips stop loss.
- This means, based on your forex trading account, you managed to trade 10 standard lots (or contracts).
- Your profit target was set 200 pips away. 3 days later, your profit target was hit making your 200 pips.
But hang on! Something missing still.
In actual fact, you made a total of 2000 pips profit in that single trade.
Why? You traded 10 contracts and each contract made 200 pips profit.
This example show how easy it can be to make 2000 pips profit in a month if you have a very large forex trading account because you are not going to be trading just one standard contracts but multiples of contracts.
Instead of trading 1 standard lot, you can be trading 5, 10, 15, or 20 or even 50 lots and this depends on how big your account size is.
Forex Trading Profits Are Not Like Your Salary On A 9-5 Job
If you have a day job, you are paid a fixed amount each week or each month. You receive a steady fixed amount at regular time periods/intervals.
Now, if you think forex trading is going to be like that, you need to jump into a pool of ice cold water so that would freeze your manhood up so you will start to think clearly.
It just doesn’t work that way, matey.
In forex trading, you have absolutely no control over how price moves, up or down. Every trade you place has the potential to be a winner or a loser.
So in forex trading, don’t think like that. That thought made me ran $22,000 forex trading account to the ground in just a few weeks.
The best way to make 2000 pips or 3000 pips or even 5000 pips per month is to not think about it at all. Trade whatever small account you have now and slowly make it grow.
Think long term…not this week or this month. But think this year, next year and the next 5 years and where that $2,500 trading account of yours would be if you follow proper forex money management and follow your trading system’s rules whilst having the proper mindset to trading.
As you forex trading account grows, there will come a time when making 2000 pips per month is not going to happen in a month, it will happen in a 1-3 days.
The day this happens, you know you’ve made it in forex trading.
And like I said previously: never have a figure in your mind about how much profit you are going to target to make each month. That is a recipe for trading disaster.
Forex trading is not a competition where you are competing to win the First Prize.
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