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20% per month. Is this possible?

  • #121
  • Oct 31, 2011 12:57am Oct 31, 2011 12:57am
Quoting du jin shan
i'm doubtful what is the best takeprofit target, whether use a risk reward as a takeprofit target or use technical analysis(support/resistance) to set a takeprofit target.
I don't think there's a single right answer for that. It depends what you plan to take out of the trade. Perhaps the answer is 'both' depending on which gives you the most pips in the shortest time?
  • #122
  • Edited 4:00am Nov 4, 2011 3:44am | Edited 4:00am
Quoting Du Jin Shan
thanks for your reply M.A.C.Doug



M.A.C.Doug, do your stoploss often be hit by the fake out or the volatility of the market ?
yes I lose 58% on average. My average loss is 5.8 pips and my average win is more than twice that, 12.8 pips. You do the math. Last month I only won 34% but still managed a 18% return from 400 trades. I am the house


Quoting Du Jin Shan
, why dont you set the takeprofit target at the next resistance (assuming buy position) ? because using breakout strategy, it can lead to an impulsive wave,
why limit the target by 3x_risk when we can have more profit by this impulsive waves ?
Forexmum is correct, although I do have some breakout strategies, I am not really a break out trader. I wait for price to come to my level and then I hand my position over to the breakout trader who pays me 3x the risk I took. Sometimes I do leave positions on locked in at break even. Occasionally I get lucky with these and capture 100 pips or more. I have found I am much better taking the profit rather than chasing these bigger moves.

I don't subscribe to Elliot wave either. What I do know is, most breakouts fail. The only way the breakout trader, hoping for a big move, can recover his losses from all the failures, is by pyramiding into the trend. I know this works very well but it is very difficult to do psychologically. I can make my returns without a big move and without to much psychological pressure/stress
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  • #123
  • Nov 4, 2011 4:31am Nov 4, 2011 4:31am
Quoting M.A.C.Doug
yes I lose 58% on average. My average loss is 5.8 pips and my average win is more than twice that, 12.8 pips. You do the math. Last month I only won 34% but still managed a 18% return from 400 trades. I am the house
AWESOME
From the thread title "20% per month, is this possible?"
Now you really make this thing possible, great.
I hope I can be a good trader like you.




Quoting M.A.C.Doug
Forexmum is correct, although I do have some breakout strategies, I am not really a break out trader. I wait for price to come to my level and then I hand my position over to the breakout trader who pays me 3x the risk I took. Sometimes I do leave positions on locked in at break even. Occasionally I get lucky with these and capture 100 pips or more. I have found I am much better taking the profit rather than chasing these bigger moves.
Thanks for your explanation M.A.C.Doug,
I have note your word "I have found I am much better taking the profit rather than chasing these bigger moves."

Quoting M.A.C.Doug
I don't subscribe to Elliot wave either. What I do know is, most breakouts fail. The only way the breakout trader, hoping for a big move, can recover his losses from all the failures, is by pyramiding into the trend. I know this works very well but it is very difficult to do psychologically. I can make my returns without a big move and without to much psychological pressure/stress
I have notice that you are a scalper,
maybe scalper have more possibility to make 20% per month than swinger or position trader, what do you think about this?

Best Regards,
Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #124
  • Nov 6, 2011 3:26am Nov 6, 2011 3:26am
20 percent is perfectly doable for me in the short term, but since I am a new trader I have no idea how possible it is to do in the long term. I average 8-15 percent a week risking 1 percent a trade, but I have a success rate around 80 percent. My biggest problems as a new trader comes from emotional trades as it robs my profit quickly. This week for an example I got three huge moves and by day 2 I was already 15 percent in the green. Then I got emotional and for the first time lost three consecutive days in a row ending my week at plus 8. I had reduced my risk pretty quickly after the first red day to preserve my profits but yea..
  • #125
  • Nov 6, 2011 4:58am Nov 6, 2011 4:58am
Quoting jwlee7ucla
20 percent is perfectly doable for me in the short term, but since I am a new trader I have no idea how possible it is to do in the long term. I average 8-15 percent a week risking 1 percent a trade, but I have a success rate around 80 percent. My biggest problems as a new trader comes from emotional trades as it robs my profit quickly. This week for an example I got three huge moves and by day 2 I was already 15 percent in the green. Then I got emotional and for the first time lost three consecutive days in a row ending my week at plus 8. I had...
You are not alone..............
  • #126
  • Nov 6, 2011 5:40am Nov 6, 2011 5:40am
I have a mental target of 400 pips a month and I risk 5% per trade, my profit target is a S/R level or trendline, last week alone on thursday I netted over 200 pips on the gbp/usd. I trade 1hr and 12hr but use 15m for my entrys, or even sometimes 5m if theres a major reversal pattern starting.

Once I hit 400 pips or so, my account will have doubled.

Its working for me so far.
  • #127
  • Edited 12:39pm Nov 7, 2011 12:00pm | Edited 12:39pm
Quoting Du Jin Shan
AWESOME
From the thread title "20% per month, is this possible?"
Now you really make this thing possible, great.
I hope I can be a good trader like you.
If you call losing 30K in three years and then finally cracking it with the crumbs I have left in my Oanda micro account then ok. Im not sure thats really what you hope to be like though.

Some days, like today, I really do think Im a good trader and it seems so easy. Then I ask myself "could I perform like this with 100K?"
The answer is no. I like to think I would still be profitable but 20%/month would be out of the question. With that sort of money I may have stopped after the first win and completely missed the really good stuff I did after that

Here's what went down

First four trades I am trading the range. The market breaks lower, I cut my losses and I am on it. I stay in all the way down to daily support (fib+trend line) and then I flip for the bounce. 74pips, 3% In the zone!
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  • #128
  • Nov 7, 2011 9:43pm Nov 7, 2011 9:43pm
Hi.

Just getting started here and have been looking for the active types of trading and it seems like Forex fits the bill. Looking to retire around the end of 2012 and like to develop a 2nd career/hobby.

Anyway. . . have been reading most of the OP's thread and wondering that if you do paper trading for a couple months (realize it's not exactly the same) wouldn't that answer the question for him. That's certainly the direction I'm heading just see if it suits me.
  • #129
  • Nov 7, 2011 10:48pm Nov 7, 2011 10:48pm
Quoting Xenaga03
I am not so new to forex, but I would like to know if any professional traders have been able to consistently pull off 20% a month, at least uptil a $100,000 account. Is this possible? I am trying to figure out what my target should be monthly for my return on capital and what figures are realistic.
Ok... it all depens on the amount of pips you are planning to gain, and how much leverage you're going to use...

For example, I am happy with 50% return a month... but I don't overleverage... I only do 1:2 leverage, so I need 2500 pips a month to meet this target.

Depending on your trading style: position trading, sentiment trading, scalping, scalping based on fundamentals, etc,etc,etc... this can be easier.

If I wanted to get 2500 pips scalping, I would need to be in front of my computer during the complete london session... and probably try to make 125 pips a day... can be done... but you need a bit of experience to achieve this.

For sentiment trading... just 5 trades, 500 pips each.. that's your month. But you need to have a strong understanding of how each news, economic and political situation affects the market in the mid and long term.

So... how much risk you trying to take... how many hours you planning to trade... how many pips you trying to make...

That's all up to you

Pbh
  • #130
  • Nov 8, 2011 2:03am Nov 8, 2011 2:03am
Quoting M.A.C.Doug
If you call losing 30K in three years and then finally cracking it with the crumbs I have left in my Oanda micro account

May I know, have you break even?

Quoting M.A.C.Doug
Some days, like today, I really do think Im a good trader and it seems so easy. Then I ask myself "could I perform like this with 100K?"
The answer is no. I like to think I would still be profitable but 20%/month would be out of the question. With that sort of money I may have stopped after the first win and completely missed the really good stuff I did after that
With that sort of money, Why you stop after the first win ??
I think trade with 100k is really good, just need to have 1% of return monthly, and you can already make a good living.
Wish to have that sort of money

Quoting M.A.C.Doug
First four trades I am trading the range. The market breaks lower, I cut my losses and I am on it. I stay in all the way down to daily support (fib+trend line) and then I flip for the bounce. 74pips, 3% In the zone!
M.A.C.Doug, trade in 5minutes timeframe, do you often have a false trade ???
using bolingerbands in 5minutes, price often to touch the upper band and the lower bands.

Best regards.
Jin Shan
- 888 Horse Power - Fast Momentum Speed Run Towards VICTORY
  • #131
  • Nov 21, 2011 5:20am Nov 21, 2011 5:20am
There is a well known trader from the market wizards book and now has his own book which is really good, who does about 25% per month and has done for years... since the 80's.

For day traders I recommend you read his book. There isn't a system as such in there but you read about all of his experiences which are priceless. It is also highly entertaining.

His name is Marty Schwartz and his book is Pitbull.

But in answer to the question of this thread... yes 20% is very possible but you need to be willing to take the risk. You won't get it being super conservative, not consistently anyway...
  • #132
  • Nov 21, 2011 5:59am Nov 21, 2011 5:59am
Quoting Nexas
There is a well known trader from the market wizards book and now has his own book which is really good, who does about 25% per month and has done for years... since the 80's.

For day traders I recommend you read his book. There isn't a system as such in there but you read about all of his experiences which are priceless. It is also highly entertaining.

His name is Marty Schwartz and his book is Pitbull.

But in answer to the question of this thread... yes 20% is very possible but you need to be willing to take the risk. You won't get...
Hi there, my first post so bear with me.

Pitbull is a great book. I also liked trading in the zone.

I know im not a forex god and will be less advanced than many here today but I dont agree that you need to take big risks to make good profit.

Im currently on a rescue project - rescuing an account that was in drawdown. I started on this 2 months ago. Month 1 i made almost 18% and this month im at 8.47% already and im risking a maximum of 1% per trade. Im also being completely consistent and trading to specified rules.

My opinion is that most traders fail because they chase a system that will give them big returns however personally the first things I addressed before trading real money was RISK and CONSISTENCY. Of course I have my set rules for entry and exit and have specified SL and TP but addressing the first 2 factors is ultimately what has lead to my success so far.

I hope this helps and is interesting to you guys.
  • #133
  • Nov 21, 2011 7:57am Nov 21, 2011 7:57am
Hi BenNathan,

Congratulaions on your early success.

Perhaps I should clarify my point. I know risk is relative but I consider to much risk something like intraday trading with 1-2% risk per trade if you are taking many trades. Ultimately if you have the potential to lose lets say 5-10% over the course of a day then that is too much risk. If how ever you are trading 1-2% per trade but you trade maybe a few times every few days then that is completely fine.

Do you see what I mean? So when I say make 20% per month means you have to accept risk, I am saying to make 20% per month you have to be ok with losing the equivalent...

I hope I clarified my point. But really well done on your early success!

Nexas

Quoting BenNathan
Hi there, my first post so bear with me.

Pitbull is a great book. I also liked trading in the zone.

I know im not a forex god and will be less advanced than many here today but I dont agree that you need to take big risks to make good profit.

Im currently on a rescue project - rescuing an account that was in drawdown. I started on this 2 months ago. Month 1 i made almost 18% and this month im at 8.47% already and im risking a maximum of 1% per trade. Im also being completely consistent and trading to specified rules.

My opinion is that...
  • #134
  • Nov 22, 2011 2:55am Nov 22, 2011 2:55am
As I'm new to trading, my target at this stage is only to break even, then maintain consistent profits (not have my account go up and down like a yoyo).. So far I've been reasonably successful.

For me, forex is just an interest and learning experience. Anything I can make (and not loss) is a plus. Besides, I'm only trading tiny amounts.
  • #135
  • Nov 22, 2011 3:17am Nov 22, 2011 3:17am
Thanks very much for the best wishes and clarification.
That makes total sense to me now.

One thing that made a big difference to me in trading in general was the switch from Demo to Real. The difference is amazing and in 3 months ive advanced more than I did doing 3 years on demo.

Luckily I have a good coach hehe.

Definitely have the bug though
  • #136
  • Nov 22, 2011 3:38am Nov 22, 2011 3:38am
Even on a real account, I find it east to make stupid trades with small lot sizes.. When I trader larger sizes, I tend to have more success..

I guess it comes down to discipline.
  • #137
  • Nov 22, 2011 3:53am Nov 22, 2011 3:53am
Quoting SYNeR
Even on a real account, I find it east to make stupid trades with small lot sizes.. When I trader larger sizes, I tend to have more success..

I guess it comes down to discipline.
Yes definitely - its the key factor in success. My personal belief is that Risk Management and Consistency/discipline is far more key to ones success than a system is. Thats what ive found these last few months anyway.
  • #138
  • Nov 22, 2011 5:35am Nov 22, 2011 5:35am
Quoting SYNeR
Even on a real account, I find it east to make stupid trades with small lot sizes.. When I trader larger sizes, I tend to have more success..

I guess it comes down to discipline.
Each to their own I guess, I would like to be more like you and trade better with more risk but there is just no way I can trade this accurately if my risk isnt squat. I can still achieve 20% in a month sometimes from 0.2% per trade risk
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  • #139
  • Nov 23, 2011 11:53pm Nov 23, 2011 11:53pm
Quoting Du Jin Shan
i'm doubtful what is the best takeprofit target, whether use a risk reward as a takeprofit target or use technical analysis(support/resistance) to set a takeprofit target.

Best regards,
Jin Shan
Good question.

As a basic rule, if you're going to exit a trade, then it makes sense to exit at a level that the market is more likely to recognize (S/R is a good example). The more accurate your entries and exits are relative to turns in the market, the more pips you will bank, in the long term.

The market does not recognize an individual trader's pip based, or RR-based, targets. Hence in themselves, they can offer no technical edge.
  • #140
  • Nov 24, 2011 4:58am Nov 24, 2011 4:58am
Quoting hanover
Good question.

As a basic rule, if you're going to exit a trade, then it makes sense to exit at a level that the market is more likely to recognize (S/R is a good example). The more accurate your entries and exits are relative to turns in the market, the more pips you will bank, in the long term.

The market does not recognize an individual trader's pip based, or RR-based, targets. Hence in themselves, they can offer no technical edge.
I agree Hanover - i always use s/r for my tp targets - sure i make less that way ie 20-30 pips but the hit rate is really high. losers are minimal and because trades are fairly quick theres less emotion involved...
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