Thoughts On My Ideal Trading Account Size

If I intend on living from a trading account in FX with 100:1 leverage I think for my trading style 80-120k USD are necessary. This may seem high to people new in the investing world, but I need to remind myself that returns of 1-1.5% p.a. on total margin available aren't bad.

Assuming I have 100k USD for margin that let's me "play" and move with up to 10 Mio USD. I've seen that even when I have 2 Mio USD available I don't like putting on trades with more than 300k. So if I can return 1-1.5% over a number of years on the total 10 Mio available (but which often will be just 1 Mio USD at play at most times) I could already be well pleased with that, as it's 10-15% return on actually invested money (something that isn't easy in the first place consistently!). That translates to over 100% return on capital standing by for margin. A percentage that without leverage wouldn't be reasonably possible for me or anyone I've ever met by any stretch of the imagination over several years. (Of course you always have the insiders who can play options before M&A activity and make killing, but that's a dangerous game and never lasts for long).

I think 100-150k income is a good number as it allows a decent lifestyle while not being luxurious and not forcing me to take on risk I'm uncomfortable with. I've come to conclusion that people I've witnessed first hand who own 3-5 properties, 2-4 cars aren't any happier than the new mugs in the game. And many of the most beautiful places and moments in life aren't correlated to money as strongly as many people imagine.

This is just my view and as people in different countries, regions and with different other incomes will require or want more it's safe too say this isn't for everyone! Sure you could always have 3-5 Mio in the trades if you have 10 Mio USD margin, but I think that would stop me using my relaxed "gut feeling" and force me into high alert or panic mode as soon as weak streak starts. Also I noticed there's a bar with % margin used in bottom right corner of my trading software and when it gets to 50% I feel VERY uncomfortable. 10-20% I can relax with more or less.