Thread: 20% per month. Is this possible?

I'm not new to FX, but I would love to know whether any professional traders have managed to consistently pull off 20% a month, at least uptil a $100,000 account. Is this possible? I am attempting to determine what my target should be monthly for my return on funds and what figures are realistic.

Originally Posted by ;

You are right, the bigger the account gets the harder it is to keep up your ROI.

However, the question asked for accounts at the size of 100k$. With 100k it IS possible and probable to receive 20 percent each month on average. (assuming you invest your earning each month obv.)

Yes I was asking if it had been possible upto $100k. I had been reading one of this Market wizards book and a number of the traders have taken their personal accounts of a few million dollars and turned it into over $100k within a couple years. One or two of these ended up dismissing it and starting all over but I noticed that the gains diminished after the 100k point.
Additionally, Larry Willi have switched $10k to $1 million in 1 year...
His daughter did the exact same afterwards, and two people can do it so it is learnable.

I understand that I am no supertrader, but one can still expect

I am going to get hammered for it, but I am risking 5% on each transaction ($1k per miniature). However, on a winning streak, I would up it and include places, and on a losing streak(cold spells), I decrease my position size so I lose as little as you can. BTW, trading on 4h/daily charts.

20 percent of what? Trading capital is 1 thing but leverage in case another.
Could we compare 20 percent of 10000,- trading funds,if we utilizing different leverage?

Originally Posted by ;

whatever is possible, the question is what's possible with YOU?

Yes you're right but I would like some realistic return amounts.

Possible? Yes. Probable? No.

No one can definitely give you a figure because every person and every trading system is different.
There is no way anyone can give you an accurate amount without knowing what you do. Only you can figure out that.

Over what time period? Is it 20% this month, then -20% following mth, or can it be average of 20% each mth over 1 yr? Too many variables.

The Attractiveness of Currency Market is the fact that ANYTHING IS POSSIBLE. There is a thread here somewhere with the name for what ppl goal for as a yield (mthly or annual). Some very very respected ppl have posted in that thread. I suggest you read that.

The goal should be profitable in the long run, and preservation of capital to be able to exchange another day.

Regards,
K.

Originally Posted by ;

...I'm attempting to determine what my goal should be monthly for my return on capital and what figures are realistic.

POSITIVE.

Goal was the query.

I would suspect no.

Not that it is not possible this month, as well as next....just that you have things such as a carry trade correction of a few hundred pips one hour. Assuming you're a carry trader, and would have been making buku dinero over the past couple of years, that alone would ensure a few bad months.

Besides, I believe that the path to riches is paved with a lot of patience. That is not to say that you cannot create 1,000 pips on a trade, but that sometimes....correction, A LOT OF the TIME, this market is just banging around.

Workout a spreadsheet on this. Consider taking your balance and gaining 2% weekly. That in itself will surprise you. Or better yet, try something quite small, 1 percent. However, with compound interest, it adds up.

I feel that the problem with most Foreign Exchange traders is that they see this market as different compared to the stock market, which can be true. But, they focus on the inappropriate gap - yields. Although it's true your CAD/JPY trade may bring that balance up 8% this week, it may just as easily do the reverse.

The component too many do not equate to stocks, so similar to stocks, currencies go up and down too. The distinction here is you are losing 8-10 bucks a pip, which in the big picture, a pip is almost nothing. It is not going to make that six pack of Labbatt's cost that much more, for instance.

But if you get stopped out in 150 pips, that's something you are going to feel. Hopefully you will have enough to afford that previously cited six pack.


Clockwork71

Unrealistic yields = unrealistic business/drugs = prohibited action and/or scam

Originally Posted by ;

I'm not so new to forex, but I would like to know if any professional traders are able to pull off 20% a month, at least uptil a $100,000 account. Is this possible? I am trying to determine what my target ought to be monthly for my return on funds and what amounts are realistic.

I feel a lot of folks simply miss a stage: Your system decides how much you may make.

To reply to your question, 20% a month is possible and probable if you use a system that can give you these yields with whatever risk you're willing to take (there are a lot of systems out there that can do this btw.) .

Another point that's crucial is: Just how much can you risk (cash management is the secret as demark says ). 0.5% risk per trade vs 3 percent risk makes a huge difference.

[Generally speaking systems that exchange a shorter timeframe generate more yield than egies with longer timeframes (H4 vs M1 for example).]

Like I said, it's possible and porbable to average 20% a month reunite on bigger accounts, but to actually answer your question that you need to simply tell us a little bit more about your system and cash management.


Btw @ demark: I love your signature! Only good news in there