Is a steady 20%/yr growth target enough for you? | Forex Factory

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Is a steady 20%/yr growth target enough for you?

  • #1
  • First Post: Oct 3, 2014 3:03pm Oct 3, 2014 3:03pm
How many of you are planning on or already growing your investments at 20% / year? It that enough for you or are you only interested in 40%+/yr returns from short-term trading?
  • #2
  • Oct 3, 2014 10:08pm Oct 3, 2014 10:08pm
right now even 100% per year would not satisfy me from my trading
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  • #3
  • Oct 3, 2014 11:54pm Oct 3, 2014 11:54pm
For a retail trader with a small account, 20% a year actually seems kind of mediocre to the potential out there. However if you possess a large amount of capital in your account I guess it's alright.

Here's an interesting question. Why do you ask?
  • #4
  • Oct 4, 2014 12:00am Oct 4, 2014 12:00am
i am looking for a steady income from forex so 10% weekly are a target for me
all have a nice day
focus while relaxed to see better
  • #5
  • Oct 4, 2014 1:46am Oct 4, 2014 1:46am
Quoting FXMasterSK
For a retail trader with a small account, 20% a year actually seems kind of mediocre to the potential out there. However if you possess a large amount of capital in your account I guess it's alright. Here's an interesting question. Why do you ask?

I am curious as to the expectations of newer traders (which tend to be inflated), especially since most trading strategies (if they survive) converge to 10%/year over time.
  • #6
  • Oct 4, 2014 1:47am Oct 4, 2014 1:47am
Quoting orabi
i am looking for a steady income from forex so 10% weekly are a target for me all have a nice day

I am afraid this would not be sustainable over time.
  • #7
  • Oct 4, 2014 2:05am Oct 4, 2014 2:05am
Quoting fxterrapin
{quote} I am afraid this would not be sustainable over time.
it is my target but keeping profit and not losing will be good if you can make a 10-40% monthly it will be great talking about 20% yearly doesn't help me out dreaming and keeping my work with fan
forex market have a lot of chances for money making if you trade with a system and a stop loss and that what i am looking for
all have a nice day
focus while relaxed to see better
  • #8
  • Oct 4, 2014 6:28am Oct 4, 2014 6:28am
Quoting fxterrapin
How many of you are planning on or already growing your investments at 20% / year? It that enough for you or are you only interested in 40%+/yr returns from short-term trading?
an average of 20% per year would be awesome, if I can sustain that over decades. However, I am not into daytrading. Can't imagine something more boring now than daytrading, no contact to other people, just watching some crappy charts. I rather work with people during the day and watch the markets 10-20 minutes a day, that is enough for me.

And a 20% return per year gives you some really great retirement money, no matter from which capital base you start.
  • #9
  • Oct 4, 2014 7:24am Oct 4, 2014 7:24am
In the case for those who use leverage, is it 20% of your account x Leverage, or 20% of the account? There is a big, big difference
  • #10
  • Oct 4, 2014 8:18am Oct 4, 2014 8:18am
Guaranteed 20% per year is a great return. But IMHO, it would require a few great years something like 60-70% for the annual to work out.

I always take into account that I need to grow accounts beyond the big boy numbers to hold client interest.
  • #11
  • Oct 4, 2014 8:30am Oct 4, 2014 8:30am
No!

Say you have 1000 dollars and leverage of 1:50
So in reality you are trading 50000 dollars. Now, if you make 200$ profit with of 50000 in a year, you make 0.4% of the total trading account. But if you take out the leverage, you see that those 200 will land on the initial 1000$. Or am I not taking something into account here?
  • #12
  • Oct 4, 2014 9:54am Oct 4, 2014 9:54am
If you turn $1000 into $1200 then obviously you just made 20% on your investment.
  • #13
  • Oct 4, 2014 11:10am Oct 4, 2014 11:10am
20% per year over the long run would be perfect. Its also more realistic that what most people would aim for.
Daily progress produces consistent growth
  • #14
  • Oct 4, 2014 4:08pm Oct 4, 2014 4:08pm
Quoting orabi
{quote} it is my target but keeping profit and not losing will be good if you can make a 10-40% monthly it will be great talking about 20% yearly doesn't help me out dreaming and keeping my work with fan forex market have a lot of chances for money making if you trade with a system and a stop loss and that what i am looking for all have a nice day

10% monthly over time is not possible without taking a lot of risk. The kind of risk that wipes out accounts.
  • #15
  • Oct 4, 2014 4:09pm Oct 4, 2014 4:09pm
Quoting Daimari
20% per year over the long run would be perfect. Its also more realistic that what most people would aim for.
Amen, but don't try and convince the "dreamers" who call folks like me 'haters' and give their money to 'scammy gurus'.
  • #16
  • Oct 4, 2014 5:29pm Oct 4, 2014 5:29pm
20% a year on a £10,000,000 account and now you are talking, 20% a year on a £1000 account doesn't go very far.
  • #17
  • Oct 4, 2014 6:07pm Oct 4, 2014 6:07pm
Quoting Custos
{quote} an average of 20% per year would be awesome, if I can sustain that over decades. However, I am not into daytrading. Can't imagine something more boring now than daytrading, no contact to other people, just watching some crappy charts. I rather work with people during the day and watch the markets 10-20 minutes a day, that is enough for me. And a 20% return per year gives you some really great retirement money, no matter from which capital base you start.
I am a day trader and 20% per yet would definitely not satisfy me.

I would probably 100% to 1,000% per year or more until I reach my first million in order to be satisfied with the gains.

But sure, go ahead and call me crazy! Let the games begin!

Oh, also, I would not be able to make this claim a year, two, or three ago. I only say this now because my trading has improved dramatically since then.
Please check out my blog at https://from-zero-to-hero . net
  • #18
  • Oct 4, 2014 6:18pm Oct 4, 2014 6:18pm
Quoting fxterrapin
{quote} I am curious as to the expectations of newer traders (which tend to be inflated), especially since most trading strategies (if they survive) converge to 10%/year over time.
Newer traders making any profit should be happy as that puts them ahead of the majority of their retailer peers. However, if your strategy is based on market dynamics and you can find a sustainable high probability edge (AKA you know why the hell you are doing), the sky is the limit.

Most retail traders also rely heavily on just technicals or a mechanical strategy which will definitely make it hard to achieve more than 20% per year, if they can even make near that much. I personally built my small balance up quickly and consistently by risking 20% per trade with careful profit/loss management in place, but then again I rely heavily on other things besides the story my charts are telling me or what an indicator says to do.
  • #19
  • Oct 5, 2014 12:10am Oct 5, 2014 12:10am
I would be very happy with a trading system that could return a long term average of 20% pa. That is well ahead of any other investment class - if you can't get rich with that, you have other problems IMO.
si hoc legere scis nimium eruditionis habes
  • #20
  • Oct 5, 2014 3:36am Oct 5, 2014 3:36am
For small retail traders 20% pa might sound very easy and little. However consistently achieving this for a period of say at least 10 years is a Herculean task.
Somehow greed gets over us with our small investments and we dream and try to earn thousands of dollars with an investment of a only few hundred dollars.
This is a major reason for the margin call / losses of majority of traders.
There are some traders who can actually do this and 'hats off' to those very few talented and skilled traders. but majority of traders are just dreamers.
All the best to all traders in pursuing their dreams and goals.
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