I realized that alot of people here are following the thinking that, a 20% increase on equity is fantastic.
I do know that many investors and fund managers strive for around 20%-30% return on their portfolios yearly and many posters in this forum always stress that return rate is good. But is it really so?
Sure, a 20%-30% increase in portfolios of stocks would be outstanding, but in the forex market it really isn't so. Bear in mind that, we are trading with mostly 100:1 leverage with some even higher. Let's say that you start an account with $300, a 10% return would be $330. That's 30 pips on a 1 lot ( mini account ). Let's say you compare yourself with a phenomenal investor/trader, like George Soros, his best would be 129% but just to make things simple, we'll put it at 100%. That would be increasing your equity to $600, which equates to 300 pips. Is that really hard to achieve? I don't think so.
Just my 2 cents, I was thinking long and hard about this before I went to bed and I just wanted to post this up for discussion. This is my opinion and I welcome constructive comments. It would be good if somebody comes to change my mind on this, maybe I'm just too ambhitious.
I do know that many investors and fund managers strive for around 20%-30% return on their portfolios yearly and many posters in this forum always stress that return rate is good. But is it really so?
Sure, a 20%-30% increase in portfolios of stocks would be outstanding, but in the forex market it really isn't so. Bear in mind that, we are trading with mostly 100:1 leverage with some even higher. Let's say that you start an account with $300, a 10% return would be $330. That's 30 pips on a 1 lot ( mini account ). Let's say you compare yourself with a phenomenal investor/trader, like George Soros, his best would be 129% but just to make things simple, we'll put it at 100%. That would be increasing your equity to $600, which equates to 300 pips. Is that really hard to achieve? I don't think so.
Just my 2 cents, I was thinking long and hard about this before I went to bed and I just wanted to post this up for discussion. This is my opinion and I welcome constructive comments. It would be good if somebody comes to change my mind on this, maybe I'm just too ambhitious.