Greetings to all,
I have been a lurker of this forum for a very long time. In that time I have read many posts made by the more respected members that would seem to indicate that once a trader has crossed the threshold into consistent profitability, that achieving a consistent monthly return of 10% is not terribly difficult.
I have read that a gain of 100 pips at 10:1 leverage in a given time frame will yield a 10% gain for that time period. Now, I am not ignorant of the fact that this would be true only if the 100 pips were gained with no intervening losses. If one were to lose 300 pips and then gain 400 pips to achieve the gain of 100 pips for the time period (a month in this case), then the gain in equity would fall short of 10% due to the equity having to spend some energy recovering from the drawdown caused by the 300 pip loss. If I understand correctly, this phenomenon is known as asymmetrical leverage, is it not?
Of course, similar performance is achievable with 200 pips monthly gain given a safer leverage of 5:1.
I would like very much to hear from those of you who are consistently gaining 10% or more in your winning months, and I would also like to know the ratio of winning months to total months (i.e., wins 10 months out of 12).
Perhaps I should have said this at the beginning, but my reason for asking is to receive encouragement that a monthly average of 10%+. Is possible and repeatable far into the future.
If I can achieve this, then the return on my $50,000 account would have an average monthly yield of $5000+. This would more than replace my current salary. I would not presume to go full time with only $50,000 in my account, but it would at least hold my creditors at bay should I temporarily lose employment.
Thank you in advance for the truth you will tell me, even if it is not what I wish to hear.
cici
I have been a lurker of this forum for a very long time. In that time I have read many posts made by the more respected members that would seem to indicate that once a trader has crossed the threshold into consistent profitability, that achieving a consistent monthly return of 10% is not terribly difficult.
I have read that a gain of 100 pips at 10:1 leverage in a given time frame will yield a 10% gain for that time period. Now, I am not ignorant of the fact that this would be true only if the 100 pips were gained with no intervening losses. If one were to lose 300 pips and then gain 400 pips to achieve the gain of 100 pips for the time period (a month in this case), then the gain in equity would fall short of 10% due to the equity having to spend some energy recovering from the drawdown caused by the 300 pip loss. If I understand correctly, this phenomenon is known as asymmetrical leverage, is it not?
Of course, similar performance is achievable with 200 pips monthly gain given a safer leverage of 5:1.
I would like very much to hear from those of you who are consistently gaining 10% or more in your winning months, and I would also like to know the ratio of winning months to total months (i.e., wins 10 months out of 12).
Perhaps I should have said this at the beginning, but my reason for asking is to receive encouragement that a monthly average of 10%+. Is possible and repeatable far into the future.
If I can achieve this, then the return on my $50,000 account would have an average monthly yield of $5000+. This would more than replace my current salary. I would not presume to go full time with only $50,000 in my account, but it would at least hold my creditors at bay should I temporarily lose employment.
Thank you in advance for the truth you will tell me, even if it is not what I wish to hear.
cici
(just kidding).
:.
Just joking of course!