Realistic forex profits | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Question: Realistic to trade forex at specific times of the day? 13 replies

Getting a realistic picture of the forex market 4 replies

A realistic trade plan 6 replies

2007.... What is Realistic? 2 replies

How many pips is realistic? 6 replies

Realistic forex profits

  • #1
  • First Post: May 26, 2005 3:59pm May 26, 2005 3:59pm
Hi...

What kind of returns traders get over a year period?

I read that over 20% per year can be considered as a very good year...

Other people says that they can get 20% monthly... even 300% monthly?

It's possible to make 20% monthly on a consistently way? month after month?

I read too about teams of traders making 5%-6% monthly (consistently)... it's possible?

What do you guys think about this quote:

Quote
"You know what NET DEPOSIT, is? the initial sum you enter into account, yeah?
OK...
lets suppose, based on my PROVEN strategy of NFP straddling technique that others have tried and done will with, turns over 20% a month, to start.. and see what happens on the 7th month of compounding...cool?

$100k balance.
70% risked... 400:1 leveraged account = 25 pips made = 70% of balance.
lets suppose we don't want to risk that much, ok? and head for 20% of balance, cool?
25 pips at 20% of balance traded = 100% of that cost of trade (20% risk)...
return = 20k
balance = 120k ==> month 1.

month 2, 20% of balance (120k) = 24k, 25 pips made = 24k
balance = 144k (44% in two months net return)

month 3, 20% of balance (144k) = 28.8k, ==> 28.8k made on 25 pips.
balance = 172.8k (72.8k net profit)

month 4 = 20% of balance (172.8K) = 34.56k.
balance = 207.36K

month 5, 20% of balance (207.36K) = 41.47K
balance = 248.83K (148.83K profit) or 41.47% NET PROFIT that month.

month 6, 20% of balance (248.83k) = 49.77K
balance = 298.6K (198.6K profit) or 49.77% on NET PROFIT for that month.

then from there on in, bearing in mind that 25 pips ONLY is needed to be made to earn 20% compounded on balance via 400:1 leveraged account... is:

month 7 = 20% of balance (298.6k) = 59.72K
balance = 358.32K (258.32K profit) 59.72% per month profit.

If you stepped this up to 40%, or 60% of balance, 300% per month is attainable.

summary...
50:1 200 pips is needed to make 100% of what the trade cost you.
100:1 = 100 pips is needed to make 100% of what the trade cost you.
200:1 = 50 pips is needed to make 100% of what the trade cost you.
400:1 = 25 pis is needed to make 100% of what the trade cost you.

most brokers use 100:1 and very low risk, eg, 1% of balance.

Enjoy the power of compounding and leverage."



THANKS.
  • #2
  • Edited 4:29pm May 26, 2005 4:19pm | Edited 4:29pm
What you have quoted below is an excellent plan for financial destruction. If your goal is to lose all your money as quickly as possible, then follow the plan you quoted.

Risk 70% ? Absolute insanity. Same thing for 20%. Profitable traders usually risk less than 2% of their capital per trade and no more than 10% total. In other words, you could have five open positions with 2% risk each for a total risk of 10%. Ideally, you would want these positions to be as uncorrelated as possible.

While forex can be very profitable over time, it is not the road to quick riches.

Oh and forget about the 400:1 leverage. It is designed to lure in unsuspecting new traders and suck their accounts dry!

If you really want to learn to trade well then read as many posts on this forum as you can. It's not all good, but there is much that is excellent. If you read enough, you'll soon be able to tell the good from the bad. I like a lot of folks on this forum, but you would do well to read anything by Merlin, fijitrader, james16 or marejp.

I'd also recommend three books to get you started. "Market Wizards" by Jack Schwager, "Trading in the Zone" by Mark Douglas, and "Trade your way to financial freedom" by Van Tharp.

If a year from now you feel I've help divert you away from disaster, you can buy be lunch at McDonalds!

Diallist




Quoting Blacke28
Hi...

What kind of returns traders get over a year period?

I read that over 20% per year can be considered as a very good year...

Other people says that they can get 20% monthly... even 300% monthly?

It's possible to make 20% monthly on a consistently way? month after month?

I read too about teams of traders making 5%-6% monthly (consistently)... it's possible?

What do you guys think about this quote:





THANKS.
sxaxlxvxaxtxixoxnxbxyxgxrxaxcxexdxoxtxoxrxgx
  • #3
  • May 26, 2005 4:19pm May 26, 2005 4:19pm
By the looks of your quote I would think you could expect at least -%100
return monthly and mabey alot more!
  • #4
  • May 26, 2005 8:20pm May 26, 2005 8:20pm
There really is no set return level regardless of what a particular system or technique claims. Returns are completely dependant on the individual trader; his/her style of trading; and their tolerance for loss.
If you are comfortable risking 10% of capital,then your positions will most likely turn over a higher percentage based on probability. If you are confident in your approach and in the position you are taking on the chart, then you are willing to risk more - hence, gain more.
There are times when I will open up on the euro and it will not go the way I expected - rather than take the loss, often I will hold the position into the night because I am comfortable with my margin usage and expect the european opening to "take care of me" - and it often does. IF the news out of europe prior to the opening of their market is not so favorable - then I would decide to close and take the loss.
Don't expect any particular gains from trading - just trade smart and the gains will come - maybe 20% one month - maybe 200%.
Capital Preservation is key to long term wealth accumulation
  • #5
  • May 27, 2005 5:25am May 27, 2005 5:25am
I agree to what MuddBuddha and diallist said over here. I once read an article by someone whom I don't know but I do respect for his words that said that the forex trading is simply a long long journey that is full of traps, if you want to arrive safely to wealth and financial freedom, you will have to be very very careful and avoid as many traps as you can. He also said that the money management is the path you are going to move your journey through, you pick a wrong path and you end up lost.

Another thing he said is that you must always have a backup plan in case you lost your way, you must know how to go back and decide either to start all over again or simply give it up and leave this forest.

It's a long journey man, and in long journey's there are always shortcuts, small traps, big traps, monsters, wild animals, deep covered gems and so on.


Happy trading.
  • #6
  • Jul 30, 2013 11:36am Jul 30, 2013 11:36am
Yes 20% per year is enough ans secure profit for a trader. Any other business can not give this much return as forex can give you . I do not believe in high amount of profits they can be dangerous any time . I get 10%monthly from my trading.
Master Forex ║ bonus up to 75% ║Minimum deposit $1 ║Swap free trading
  • #7
  • Jul 31, 2013 7:19am Jul 31, 2013 7:19am
best trader from dukascopy ~115% /year in 2010
Inserted Video

best trader in a month made >1000% in a month, you can search the videos
but I don't belive they end the year with any penny in account.
  • #8
  • Aug 2, 2013 1:29am Aug 2, 2013 1:29am
I just believe in risking 2% and do not worry about the amount of profit. Its not my living.
  • #9
  • Aug 2, 2013 1:48am Aug 2, 2013 1:48am
Quoting Blacke28
Hi... What kind of returns traders get over a year period? I read that over 20% per year can be considered as a very good year... Other people says that they can get 20% monthly... even 300% monthly? It's possible to make 20% monthly on a consistently way? month after month? I read too about teams of traders making 5%-6% monthly (consistently)... it's possible? What do you guys think about this quote: {quote} THANKS.
20% yearly ???? I thinks its worst and waste of time... Giving time for analysis, seating in front of screen for hours and get only 1.65% monthly.. It is better i invest in some fixed income instruments...

Minimum 7-8% monthly is good...
  • #10
  • Aug 2, 2013 2:06am Aug 2, 2013 2:06am
These threads are always funny; you get the $500 account guy arguing with the $50,000 account guy about %'s.

Personally as my capital increases the weekly % gains tend to decrease their average. Where once I was happy to risk an open trade up 50 pips in pursuit of more, even risk the lot to add to the trade, now I am more fearful of losing it. This inevitably affects my decision making.

The less % gains still dwarf the large % gains of my earlier equity curve though. $ are the goal.
Time hides Nothing
  • #11
  • Aug 2, 2013 2:25am Aug 2, 2013 2:25am
Quoting Master Forex
Yes 20% per year is enough ans secure profit for a trader. Any other business can not give this much return as forex can give you . I do not believe in high amount of profits they can be dangerous any time . I get 10%monthly from my trading.
blimey, why bother responding to a crap thread that has been dead for 8 years !!!!!!!!!!!!!!!!!!
  • #12
  • Aug 2, 2013 2:28am Aug 2, 2013 2:28am
I'm targeting 20-25% low-risk, almost safe and pretty much guaranteed gain per year. And that is the top of my expectations.

And forget about leverage 400:1! Use no more than 50:1 ever! Even 20:1. Focus on acquiring and growing trading capital for couple years - $100k is a good start.

Consider profits from FX as "dividend" at the year end. And yes - you can quit your day-job, but when your FX account is no less than $250k. Everything else is myths and legends, I know a lot of people in FX/stocks/options and nobody, repeat nobody makes something descent with $5-10k capital. Everything is possible though, but chances are really small...

Instead as lottery ticket - start using FX as profits/income amplifier. Than you will really see the power of compounding. It takes time, it takes patience, it takes passion, but is really worthy I think.
  • #13
  • Aug 2, 2013 5:40am Aug 2, 2013 5:40am
As an experienced trader for a few years, I advise our members. Do not be hasty to win back your Money.


Try out to find the reason why this happened to you with a memo to write down the main 1 or 2 causes for it. And then, Learn more and more! Anything else like webinar or whatever may give you a kind of enlightenment!
  • #14
  • Last Post: Aug 5, 2013 11:13am Aug 5, 2013 11:13am
Quoting CindyXXXX
These threads are always funny; you get the $500 account guy arguing with the $50,000 account guy about %'s. Personally as my capital increases the weekly % gains tend to decrease their average. Where once I was happy to risk an open trade up 50 pips in pursuit of more, even risk the lot to add to the trade, now I am more fearful of losing it. This inevitably affects my decision making. The less % gains still dwarf the large % gains of my earlier equity curve though. $ are the goal.
I agree, $500 account do not have the ability to argue with $50,000 but I guess $50,000.00 people earn their living through FX
0 traders viewing now