DislikedOk guys, why can't we keep a decent argument here ?! First: We don't talk unique special geniuses like many of you... We talk statistics Then: it's very important HOW you make those 500K. - Technically, one can easily make 500K out of only 6 consecutive winning trades starting with 100K betting/risk one third per trade. (1.33^6*10⁵) - Or, make 400K in only two bets - all in, only two shots, starting with 100K. (2≤*10⁵) What the fck is that ?!? Proves what ? Now let's talk about being "consistent on short term": - Like making 500K in...Ignored
On Forex you start to move the market on >100 lot size, so $10000 per pip. When you earn 20 pips per day on avg. you make $200000 dollar per day, max, so in best case $4 Mio per month. I know one trader he is trading few currencies with kind of grid system. He earns about $12-16 Mio per year if it goes good. So you have a natural barrier as a non-market maker and that is when you start to move the market.
As a counter trend trader you can invest more than 100 lots for example and it also plays in you hand if you start move the market due to your volume. The problem which occurs when you invest much more than 100 lots is that you need, if it goes shitty sometimes, 2-4 pips to sell your whole position in 10-30 seconds. So you move the market against your position 2-4 pips (you can compare that to 2.5-4.5 pips spread on GBP/USD) and that can bring you in big trouble if you go only for 10 pips for example. So also for scalper is a natural limit, even on forex but it is higher than on NYSE.
There is one other aspect which put your foot automatically on the brake at a certain point and that is the probability of black swan event. The problem with market is: You can never be sure to 100%, no matter how save it looks like.
I give you an example: When you buy in a crises 10 avg. houses in USA for $1,5 mio dollar you can be to 100% sure you can sell it next 5 years with a huge proft - except USA will be bombed into the ground etc. (so very unlikely).
On markets it is different. Even if you have inside information (and use it which is illegal), for example, A huge company takes over a small company etc. you cannot be sure that the deal will work out because they can cancel it anyway before official release. So you even lose money because other insiders also bought shares before and have to get rid of them when the deal will not work out. So even here and even with huge money you never can be sure to earn money and still have the possibility to lose money.
That's one reason why investing on trading markets is always limited.
You can overcome that problem with starting only with a $500 dollar account and let it grow, always full risk. But you can be sure: If it goes >1 Mio Dollar in 18 Month you will automatically stop to take full risk because you could lose 500000-700000 Dollar in few days on full risk. So it is not so easy and less complex than you may be think. I'm not yet there so I can only assume problems you get if you are so successful on the market but I think it goes into that direction.
So to earn 1 Billion Dollar with trading is possible but it will take you probably 30 years or even more, just because of market restriction.
So if you ask me: Can you earn money with trading? I would say yes but it is different than you think. The money has to come from another trader/institution. A good example with a bad trending entry is the net long positions. If 95% of the traders are long the chart probably looks awesome but it will not help -because too many people are already long. No matter how good the chart looks now: Upside is limited due to that fact.