Expected returns from Forex | Forex Factory

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Expected returns from Forex

  • Poll

  • What is a reasonable you expect to make from forex?
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  • #1
  • First Post: Jul 5, 2007 9:19pm Jul 5, 2007 9:19pm
How much do u expect to make (at least), from forex trading?
100% of traders are losers. Just that some win more than they lose!
  • #2
  • Jul 5, 2007 9:34pm Jul 5, 2007 9:34pm
Quoting Mr demark
How much do u expect to make (at least), from forex trading?
61% +++ on small account
25-40% on large account (> 250k)
  • #3
  • Jul 5, 2007 9:39pm Jul 5, 2007 9:39pm
nice, not bad (40%)
100% of traders are losers. Just that some win more than they lose!
  • #4
  • Jul 5, 2007 9:58pm Jul 5, 2007 9:58pm
don't expect anything, your make more, focus on the returns don't do you no good because you never know what's gonna happen day to day, focus on trading and always keep several homeruns trades, when those trades comes, well you know what to do.
If I Go Broke Trying Then I Will die happy.
  • #5
  • Jul 5, 2007 10:05pm Jul 5, 2007 10:05pm
Amen.
  • #6
  • Jul 5, 2007 10:12pm Jul 5, 2007 10:12pm
well said
100% of traders are losers. Just that some win more than they lose!
  • #7
  • Jul 5, 2007 10:17pm Jul 5, 2007 10:17pm
If there is ppl undecided here. Before listening to pseudo experts that will say to you that they only acomplished 200% in 13 years. Please open...

www.google.com and search for...

forex yearly returns

or

forex managed accounts

you will see monthly returns for managed accounts beeing bigger per month than the goals of some ppl for the entire year.
  • #8
  • Jul 5, 2007 11:14pm Jul 5, 2007 11:14pm
Quoting Warper
you will see monthly returns for managed accounts beeing bigger per month than the goals of some ppl for the entire year.
Unless said returns are posted by a CTA on an NFA-reviewed site, I would question any & all returns for managed forex. Managed forex doesn't require holding a CTA, nor having your advertising/site NFA-review, so you can post whatever returns you want without consequence.. hence, distrust them unless CTA/NFA certified.
  • #9
  • Jul 6, 2007 5:16am Jul 6, 2007 5:16am
For a pro forex trader, managing 1 million, I think 10% should be a min requirement in years. Then monthly earn should be around 10k, that means 1k pips(standard lot). Consider leverage 50:1, and use 40K as position scale(that equals 20 stand lot, USD based pair). 1K/20=50 pips per month.

I'm not pro, but set this as the ruler.
Trading is a business
  • #10
  • Jul 6, 2007 5:54am Jul 6, 2007 5:54am
0%
Trade what you see, not what you think.
  • #11
  • Jul 6, 2007 6:17am Jul 6, 2007 6:17am
I have so far this year achieved 130% (~3% per week, trading mini lots and making just over 100 pips a week). If I can keep it up I'll end the year with 400%. To date this looks very reasonable and achievable to me. However, as the account grows I will gradually reduce the risk and with it the return will decline in %-terms.
Consistency and patience is everything
  • #12
  • Jul 6, 2007 6:41am Jul 6, 2007 6:41am
Quoting Warper
If there is ppl undecided here. Before listening to pseudo experts that will say to you that they only acomplished 200% in 13 years. Please open...

www.google.com and search for...

forex yearly returns

or

forex managed accounts

you will see monthly returns for managed accounts beeing bigger per month than the goals of some ppl for the entire year.
I suppose it depends on the stage you are at. For my part, when I started I expected to double my account very quickly. Then I realised the first step was to become profitable and build from there. I still expect big annual returns with time, however as I'm still learning and making mistakes my immediate expectations are still quite low.

Here's to exceeding them.
quote of the day: . It's like deja-vu all over again
  • #13
  • Jul 6, 2007 6:53am Jul 6, 2007 6:53am
0.01% per trade
>100% a year,..... (yea, right)
  • #14
  • Jul 6, 2007 7:01am Jul 6, 2007 7:01am
Quoting Trader KGB
Unless said returns are posted by a CTA on an NFA-reviewed site, I would question any & all returns for managed forex. Managed forex doesn't require holding a CTA, nor having your advertising/site NFA-review, so you can post whatever returns you want without consequence.. hence, distrust them unless CTA/NFA certified.
Those are good points; other things to keep in mind are risk levels, and if they are managing segregated acounts are they only posting the averaged results. For example, someone managing two accounts could easily bet one account long on a trending pair, another equal account short on the same pair; one blows up, the other triples. Average return is then 50% if he's honest enough to include the blown account in the reporting, 200% if not...

Frankly, when I see someone advertising to manage FX (or any other spec) accounts, I have to wonder why, if they are so smart, they need other people's money in the first place. With the usual estimated return they should have Buffet, Gates, and Soros all working as chambermaids...
  • #15
  • Jul 6, 2007 7:25am Jul 6, 2007 7:25am
Quoting HalifaxCB
Those are good points; other things to keep in mind are risk levels, and if they are managing segregated acounts are they only posting the averaged results. For example, someone managing two accounts could easily bet one account long on a trending pair, another equal account short on the same pair; one blows up, the other triples. Average return is then 50% if he's honest enough to include the blown account in the reporting, 200% if not...

Frankly, when I see someone advertising to manage FX (or any other spec) accounts, I have to wonder why, if they are so smart, they need other people's money in the first place. With the usual estimated return they should have Buffet, Gates, and Soros all working as chambermaids...
well, i tihnk they want to manage people money to make more money off it. But i try to stay away from high returns
100% of traders are losers. Just that some win more than they lose!
  • #16
  • Edited 10:14pm Jul 6, 2007 8:25am | Edited 10:14pm
I think it depends on how much of that investment in forex compared to your total net worth. If you have a 100K net worth and you invest $4K in Forex, and you know something about trading methods and money managemet probably a high percent like 80%, or even 100% - 200% per year is possible. You invest only 4% of your net worth into Forex and if you use some risky methods (some of them do show wonder at times) then some crazy return per year is possible and you can brag about your 200% per year. It still requires skill and be smart but with 4% of your net worth at risk, you sleep well at night and will likely go for a riskier method.(but don't fool yourself that you are so smart that you can do the same thing if more of your net worth is at risk, like 60%)

In contrast if one is to invest most of his net worth (like 80K or your 100K net worth) then honestly ask yourself if 40% profit per year is possible. Much less likely as you will be much more cautious in selecting your trading methds and the psycho is totally different if 80% of your wealth is at risk.

It's a relative thing. If someone is able to turn 500K into 1.5 million in a year but he has 1 billion net worth(so his intial 500K is almost nothing to him), and the other person is able to turn 1 million into 1.3 million at the end of year (while this guy total net worth is only 1.5 million in total and so his initial investement of 1 mil means much to him), who is more skilled in trading?
  • #17
  • Jul 6, 2007 8:27am Jul 6, 2007 8:27am
yes, i see a correlation there. It all depends on your risk appetite
100% of traders are losers. Just that some win more than they lose!
  • #18
  • Feb 18, 2008 5:50pm Feb 18, 2008 5:50pm
I have always been impressed by managed accounts that show records of 25-50% a year. If actuals beat 50%, then hats off to the manager. More icing on the cake for his/her clients.

I am referring only to $100k+ managed funds.
  • #19
  • Feb 19, 2008 3:44am Feb 19, 2008 3:44am
As I intend to just keep re-"investing" the money into bigger trades (I don't intend to draw money this year from the account), I expect it to grow significantly.

Thing is, even if you have £100 in an account and only risk 1% to make 2% (2:1 reward:risk), with a reasonable probability of gain, even without compounding, in 50-100 trades, you should have double the account.
The market reveals who we really are...
  • #20
  • Feb 19, 2008 4:08am Feb 19, 2008 4:08am
As much as everyone claims to be impossible, irrational, or otherwise astronomical.
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