How to Turn $100 to
$1 Million in 3 Years
The two keys to being successful in forex are using low
leverage and long-term trading. I’m going to show you how you can turn $100 to
$1 Million in 3 years using about the equivalent of 15x leverage.
If your account leverage is set to 50:1, then using 30% of
your money as margin is equivalent to using 15:1 leverage. Starting with only
$100, your initial trade size is:
- $100 x 15 = 1,500 units (100% of money at 15:1 leverage)
- $30 x 50 = 1,500 units (same as 30% of money at 50:1 leverage)
If you are concerned about 1,500 units not being
possible with standard lot sizes, then you are using the wrong forex broker.
There is really no reasons why standard lots should even be used since you are technically trading with your forex broker, not the actual forex market. Any
broker still using standard lots is living in the dark ages.
OANDA allows you
to trade with however many unit you want. Want to trade 781 units? You can with
OANDA. If you want to know more about them, then check out my Review of OANDA.
If we use the example average of 10 pips per day, then we
will gain an average of 200 pips per month. After one month, your total account
size will be approximately $130.
- $0.15 per pip x 200 pips = $30 unrealized profit
Forex brokers generally include your unrealized profit
when calculating your available margin. Therefore, after a month you will have
$30 used margin, $70 unused margin, and an additional $30 in unrealized profit.
To the broker, it will appear as if you have $100 available margin ($70 unused
margin + $30 unrealized profit), which means you can add to the trade, pyramid
If you have only $100 to begin with, then your next trade
size is going to be pretty small, because you are only going to use 30% of your
unrealized profit for the next trade:
- $30 x 0.3 = $9
- $9 x 50 = 450 units
That’s right, if you only have $30 in unrealized profit then
your next trade size will only be using $9 as margin. At this point you would
have an initial trade of 1,500 units that is 200 pips in profit, and you just
added an additional trade of 450 units.
This might not seem like a lot, but at
this rate you are achieving about a 30% increase per month, which can turn $100
to $1 million in 3 years!
Also consider that if you had $10,000 then your first trade
size would be 150,000 units ($15 per pip), your first month of profit would be
about $3,000, and your next trade size would be 45,000 units ($4.50 per pip).
How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years - 30.5% Monthly Return Long-term Trading
Because there is so much information combined into this one
graph, I have created a graph for each individual year.
In year 1, with this
extremely feasible and realistic 30.5% increase per month trading forex
long-term, $100 turns into $1,800. Again, that doesn’t seem impressive until
you realize that’s a 2,240% increase in ONE year.
Year 1 - How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years - 30.5% Monthly Return Long-term Trading
In year 2, that $1,800 turns into $45,000!
Year 2 - How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years - 30.5% Monthly Return Long-term Trading
And finally in year 3, that $45,000 turns into over $1
Year 3 - How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years - 30.5% Monthly Return Long-term Trading
Trading forex long-term is significantly more reliable than daytrading forex, and using low leverage combined with long-term trading can turn $100 to $1 Million in 3 years.
Certainly, there are a lot of variables that could effect actual results, but these estimations are based on realistic assumptions. Most people likely would not make it to $1 Million even if they were able to follow this example perfectly, simply because they would likely start withdrawing money and using their forex profit.
This example assumes that no money is withdrawn until the goal of $1 Million is achieved.