How to Trade Forex with $100:
Turn $100 to $1 Million in 3 Years Realistically

How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years Realistically - InvestGrowRepeat.com

Not only am I going to show you how to trade forex with $100, but I am also going to show you how to turn $100 to $1 Million in 3 years realistically in forex.

Sound impossible? Let me prove it to you.

All Forex brokers offer a minimum of 50:1 leverage, which means you can trade forex with 50 times your account balance. This type of trading is called trading on margin. The money in your account is called margin, whereas the money you trade with is technically borrowed from your broker.

Most brokers do not require a minimum deposit, so if you only have $100 in your account, you can trade with up to 5,000 units, which is more than enough to begin making money in forex.

On a currency pair like the EUR/USD, trading with 5,000 units means you are trading with $5,000 and every pip is worth $0.50 (50 cents).

That may not seem like much, but if you gain 100 pips that's $50 profit from only a starting $100 – a 50% increase!

Related: Stocks vs Forex: Why Trade Forex?

Granted, leverage is a double edged sword that both accelerates your gains and escalates your losses. You should never trade with anything close to 50:1 leverage, and I am going to show you how to turn $100 to $1 Million with significantly less leverage.

In order to win in forex, you must have a strategy that is sustainable long-term. If you use 50:1 leverage, then a 100 pip loss would completely wipe out half your account ($100 - $50). Using high leverage is one of the primary reasons why almost 95% of retail traders lose money.

Another big reason why almost 95% of forex retail traders lose money is because they daytrade forex. I have already covered the Top 3 Reasons Why You Should NOT Daytrade Forex.

Not only am I going to show you how you can turn $100 to $1 Million in 3 years, but I am also going to consequently show you why long-term trading is more consistent and profitable than daytrading.

Succeed in Forex with Long-Term Trading

In order for me to explain how you can turn $100 to $1 Million in 3 years in forex, I first need to explain to you how to be consistently profitable in forex by trading long-term.

As an example, take a look at this graph from the GBP/NZD:

For about 2 months the GBP/NZD trended upward at an average of 23 pips per day (and then trended downward at about the same speed). That's a guaranteed average of 23 pips per day trading long-term. Whereas nothing is guaranteed in daytrading, except that you will lose most of your money.

Next, let's take a look at a graph from the EUR/USD:

This time the trend lasts for almost a year, and if you had shorted the EUR/USD at the beginning of this trend then you would have averaged 10 pips per day. Again, that's a guaranteed average of 10 pips per day. Overall you would have gained over 2,700 pips.

10 pips per day may not seem like a lot, but I am going to show you how a guaranteed average of 10 pips per day can turn $100 to $1 Million in 3 years.

Note: I have heard of forex traders talking about daytrading in order to achieve only 10 pips per day, but in practice it just doesn't work out.

Plus, why daytrade to obtain 10 pips per day when you can achieve the same results by hitting the buy/sell button one time and letting it sit? Basically, if you can achieve the same results with significantly less work, then why choose to do more work? Do you want to gamble...or do you want to win?

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 style.

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 TradingHow 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 TradingYear 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 TradingYear 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 Million!

Year 3 - How to Trade Forex with $100: Turn $100 to $1 Million in 3 Years - 30.5% Monthly Return Long-term TradingYear 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.

Want my advanced forex knowledge?

Learn how I win with advanced risk-reducing techniques and leverage management, as well as the buy/sell signals I use. Normally available for $50, you can have access for only $29.

 

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Disclaimer: Purchasing does not guarantee success, although it may significantly increase your chances of success – you are always trading at your own risk. All transactions are final.

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