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Average Monthly Return

  • #1
  • First Post: Feb 20, 2010 7:11am Feb 20, 2010 7:11am
Hello,

I'm still new to forex but I was wondering how much real money people make/loose each month. If it's not personal, would you mind sharing what's your estimated average return per month?

Also, who is your broker?
  • #2
  • Feb 20, 2010 3:03pm Feb 20, 2010 3:03pm
Since 90% of all traders lose I'd say the monthly return is somewhere in the -10% month range.
  • #3
  • Feb 20, 2010 4:32pm Feb 20, 2010 4:32pm
Where do these figures come from? This figure is kind compared to the 95% of losers I've read about. I believe the figures are a joke.
  • #4
  • Feb 20, 2010 4:44pm Feb 20, 2010 4:44pm
Quote
I believe the figures are a joke.

Why? Do you think Trading is easy?

The numbers are actually quite realistic. I've read an articel published by the German Government about CFD Brokers and Costumer Protection. They asked the biggest Brokers in Europe "How long does the average Account last?". It turned out an account with 1k-5k Euros reaches the "inactive" status after 1.5 years. The ones with 5k+ Euros usually after 3 years. So the failure rate is somewhere in the 90% range.
  • #5
  • Feb 20, 2010 5:54pm Feb 20, 2010 5:54pm
Yes I think trading is easy. Too much greed way too early wrecks the average investor. Instead of really studying and then searching for a system they can manage most jump with $$ way to early. With all the demos around folks still blow cash. It's hard to believe 90% are misled stupids. Probably a good size % of those losers are hard gamblers of some sort or another from horses to cards etc. Maybe they get their % figures from the Pope. Daytrading to certain amount and moving on to the next day can be *easily* done if sights aren't set too high. Holding over is crazy. Half of the bone headed trading systems listed in forums here are nuts. They all live in past data. They lite up with arrows, alert sounds and lines running North, South, West and East. More complicated then the structure of the Universe. Just studying the pip count http://www.autochartist.com/autochar...?symbol=USDJPY should give most a clue as how to attack the Pairs.
  • #6
  • Feb 20, 2010 6:01pm Feb 20, 2010 6:01pm
One last remark. 50% of the so called 90% losers wouldn't know if they were standing out in the rain. So they shouldn't count in the count They are lifetime Philanthropists.
  • #7
  • Feb 20, 2010 6:32pm Feb 20, 2010 6:32pm
Quoting fr600
Hello,

I'm still new to forex but I was wondering how much real money people make/loose each month. If it's not personal, would you mind sharing what's your estimated average return per month?

Also, who is your broker?
Ok another post that I would like to respond with a realistic answer? For what reasoning do you want to know this? It wont make you a better trader or worse trader either way. Unfortnately what it will do is give you false hope or false negativity as you strive your success and failures based solely on other's success or failures. There are many successful traders and unsuccessful traders. They all have their own way of trading, and I am sure there are many decent systems and many crappy systems.

Open a Demo account, study, practice then answer you the question if you are successful or not. Do not open a $100K demo account and do not open a $25K demo account and do not open a $10K account.

Open a $5K demo account, trade on full lots at the most and micro/mini lots as well.

Do not over trade, set yourself up for a plain of failure and how to rebound that for success.

I first opened my account $5K, it went down to $2k, then I am back up to $10K on my demo.

Does it really matter my success compared to you?

You need to think for yourself and dont try to impress others and dont get faked out by others success or failures.

You know dang well 1000's if not hundreds of 1000's if not 1 Million's of people are successful at this.

If it was not successful then we would not have the forex market to depend on financially.
Know when to hold em, Know when to fold em!
  • #8
  • Edited 5:08am Feb 21, 2010 4:57am | Edited 5:08am
Quoting goods
Ok another post that I would like to respond with a realistic answer?...

The reason I asked is because my statistics from demo are way too good to be true. I just wanted to have a realistic view of the whole picture.

If you are still on demo or if you don't wanna say, you don't really have to.
  • #9
  • Feb 21, 2010 7:41am Feb 21, 2010 7:41am
Quoting fr600
The reason I asked is because my statistics from demo are way too good to be true. I just wanted to have a realistic view of the whole picture.
Well, the question is a bit hard to answer because there is always risk involved in trading. People have different preferences and attitudes towards risk. Comparing risk adjusted return is probably better than a regular, straight forward return measure. You will have to provide more information about your trades in order to do this.
  • #10
  • Feb 21, 2010 8:07am Feb 21, 2010 8:07am
Hi FR, I am still on demo as well. May I ask you if you opened your demo account as reality? I mean did you open an account size in respect to the accounts size which you are going live on? This is important because I know alot of people who open up $100K demo accounts and in reality all they can spend to open an acct is $2K.

Me personally I am on a $5K demo and so far after 2 weeks of going no more than 1 lot volume sizes I am up to $10K..
Know when to hold em, Know when to fold em!
  • #11
  • Edited 2:02pm Feb 21, 2010 8:19am | Edited 2:02pm
Quoting goods
Hi FR, I am still on demo as well. May I ask you if you opened your demo account as reality? I mean did you open an account size in respect to the accounts size which you are going live on? This is important because I know alot of people who open up $100K demo accounts and in reality all they can spend to open an acct is $2K.

Me personally I am on a $5K demo and so far after 2 weeks of going no more than 1 lot volume sizes I am up to $10K..
I opened several demo accounts like I said. I'm going to invest $1000, so my demo accounts are all in $1000 unless not permitted. I have seen very high return. The figures are just illusion to me. I don't wanna rush into it since I'm learning and I have a long way to go... but I think trading with a Live account with micro lots won't hurt. Don't take it the wrong way... my question arose out of curiosity.
  • #12
  • Edited 11:30am Feb 21, 2010 10:48am | Edited 11:30am
I know you know you are a long way from having sufficient info as to the validity of your trading.

Trading demo is fine to establish a base line and to understand whether the method you are using is even worth pursuing farther as well as learning the ropes of the platform/broker ect...

At some point switching to a small funded account trading for actual $$$ is a necessity. Trade pennies or dimes but make it real. Keep accurate records, prove to yourself you can manage an account and survive and prosper, numbers won't lie.. If ya can't keep a $200 account trading dimes above water you won't do it with 20k either.

Money changes everything.

one more thing, you can't judge your progress by others, everyone has their own learning curve,
I do agree with TJPLD, trading is not easy, but it can be, for some it is, if you are one of those people more power to ya.
(Human nature is an interesting subject...)

If you find it easy I suggest you take detailed notes right now of your thoughts in the event the clarity of the moment fades away..

Best of Luck.

p.s. My cousin Jethro has been studying brain surgery for 3 months now, thinks he can handle it, any takers??

didn't think so....
  • #13
  • Feb 21, 2010 11:27am Feb 21, 2010 11:27am
Quoting dforant1
Where do these figures come from? This figure is kind compared to the 95% of losers I've read about. I believe the figures are a joke.
Well if you would like a real world sample... then just look at Fxstreet live contest results(small sample though) but interesting

2007: 2 out of 60 contestants ended up positive: 3% winners
2009: 2 out of 43 contestants ended up positive(one of them at zero): so really 2% profitable.

Trading is hard when you are on a live account... forgetting all the bs demo accounts. Have a nice day!

My advice is look through the posts of username: Xaron. He's a good trader and also won the 2009 contest. He doesn't talk BS and backs up his stuff. In one of his posts he posted an entire transaction log where he made 467% in 8 months(although admittedly overleveraged). And this list spans over thousands of trades which most would agree statistically significant. Thus disproving where some say no one wins. And these trades dont include another one of his accounts where he took it from 5k to around 25k...

Thus you have a REAL profitable trader on the forum with the cahones to post live trades and histories and who won a REAL live trading contest and is currently working for a much larger investment house. Just by the numbers most of the posters on this forum are losers... including the majority of highly vouched members. Which I know for certain aren't vouched because of their performance as a trader.

So stick to the winners and also read alot of the older threads on the forum because there are some real gems from the older members. As with most forums the thread quality goes down the longer the forum is live . Oh and don't trust what anyone says.. unless it makes sense to YOU. The forums are littered by snake oil salesmen which in my opinion is the worst kindve human being in the world and deserving of the death penalty lol.
  • #14
  • Edited 9:50pm Feb 21, 2010 4:58pm | Edited 9:50pm
mine result..

edit: oh yeah..double check with my broker..
Attached Image (click to enlarge)
Click to Enlarge Name: performance report.jpg Size: 29 KB
  • #15
  • Feb 21, 2010 5:20pm Feb 21, 2010 5:20pm
Quoting microsuck_36
mine result..
couple of good months not making up for your average yearly return of negative 80%.
  • #16
  • Feb 22, 2010 4:54pm Feb 22, 2010 4:54pm
My average return has been 20% a month on my personal account. I am a short term trader and never hold over night. My account size is not huge but is a enough for me to be a full time trader. I suggest to definately trade using a demo account when you become profitable and have found your edge, start small and work your way up... trading is 90% mental and you must trade within your comfort zone in terms of dollar amount.

Stace
  • #17
  • Feb 23, 2010 1:03am Feb 23, 2010 1:03am
Quoting fr600
Hello,

I'm still new to forex but I was wondering how much real money people make/loose each month. If it's not personal, would you mind sharing what's your estimated average return per month?

Also, who is your broker?
Ignore those who will reply to your question saying it is irrelevant, as there is nothing wrong with getting a general "feel" for what might be realistic for some traders. But yes, it does depend on many factors.

I have found that full time retail traders who are making in the range of 5-15% per month CONSISTENTLY are among the best, but that CONSISTENT returns above about 25% per month are simply not realistic as a SUSTAINABLE objective (for the vast majority) - and by sustainable I am talking about year after year, not just for a few consecutive months. I comfortably average 5-10% per month with about 1 in 4 getting up to 15% or slightly beyond. I am an index futures trader (and wont be discussing any of my methodology in detail here or in any other context), but am also looking at slowly adding some forex to my bow, for added interest and learning.

By the way - you mentioned opening up an account with $1000. Once you are doing spectacularly well as a trader (usually takes a few years, and the amount of learning equivalent to taking an undergraduate degree at least) you might expect this account to get up to $2000 within 12 months... so here we are talking about what is realistic. And if I am right (experience tells me that I am), can you begin to see why most traders loose money hand over fist?
  • #18
  • Feb 24, 2010 1:17am Feb 24, 2010 1:17am
Thanks guys... I guess I'm trying to find out how and why and how much people made and lost money. Since I'm new, everything seems like too much information. I'm collecting and learning whatever I can... and trying to keep everything in the right place. I'm still on demo but for me atleast, learning never stops. I have a tendency to take too much risk on demo which I'm trying to get rid off. I believe dealing with real money, even if it's on micro lots, will make me a disciplined trader. Return I think shouldn't be the issue right now for me. Even if it's very low and as long as it's not negative, it's good enough.

One question though... is it possible to be consistent and sustainable in such volatile market with short term trades?
  • #19
  • Edited 4:45pm Feb 24, 2010 4:36am | Edited 4:45pm
Quoting fr600
Thanks guys... I guess I'm trying to find out how and why and how much people made and lost money. Since I'm new, everything seems like too much information. I'm collecting and learning whatever I can... and trying to keep everything in the right place. I'm still on demo but for me atleast, learning never stops. I have a tendency to take too much risk on demo which I'm trying to get rid off. I believe dealing with real money, even if it's on micro lots, will make me a disciplined trader. Return I think shouldn't be the issue right now for me. Even...
Fr600 - the answer to your question at the end of your post is "yes." You also mention that 'learning never stops' and you are spot on with this point. Here is a link to a post I have made previously which includes some discussion about the benefits of learning (and hard work) vs the idealistic and unrealistic approach of trying to adapt someone else's system, including the traps of automation.... It most often takes years to become a 'sustainable' trader, and anyone who thinks otherwise is deluding themselves.

http://www.forexfactory.com/showthread.php?t=210349
  • #20
  • Last Post: Mar 3, 2010 10:56pm Mar 3, 2010 10:56pm
Quoting Hedginghog
Ignore those who will reply to your question saying it is irrelevant, as there is nothing wrong with getting a general "feel" for what might be realistic for some traders. But yes, it does depend on many factors.

I have found that full time retail traders who are making in the range of 5-15% per month CONSISTENTLY are among the best, but that CONSISTENT returns above about 25% per month are simply not realistic as a SUSTAINABLE objective (for the vast majority) - and by sustainable I am talking about year after year, not just for a few...

Hi hedge, Im sorry to be following you around, but I absolutely agree with what you say on this matter, I also respect the approach.

Fr 600 , Listen pal, if you can earn 5% a month with a truly consistent approach then you are light yrs ahead of some of these jokers who will earn ungodly %ror for even a couple of yrs. Its just math in order to to get those #'s you have to be one exceptional person and to maintain those #'s you have to be supernatural.
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