Thread: 20% per month. Is this possible?

Hi Xenaga03

that I believe that the answer is dependent upon system expectancy, and one's personal tolerance for risk. With leverage and a compounding MM system, nearly anything is possible. This is the response.

Everything else being equal, return and risk are directly proportional to position dimensions. 20% per month might be attainable, if one is prepared to dimension positions to have the essential risk, i.e. where bad months will cause large drawdowns, and the actual probability of wipeout. Vendors market their systems by estimating yield, but the real measure of system efficiency is dollars (or percent) obtained for each dollar placed at risk.

So is 20% per month, each month, realistically possible? I doubt it. Why? Compounding 20% per month equates to approximately 800% annual yield, i.e. we can turn $5k into $10.5m in 3.5 decades, and into $2.5b in 6 decades. It would certainly be interesting to know whether any of the top traders here achieve anything remotely close to this. I guess there's a major difference between theory and fact, particularly when the numbers get large: by the standpoints of both liquidity, and maintaining discipline as one's personal comfort levels are stretched.

David

Well 20 percent can be achievable I think with great money management. Not only saying this is my risk that my reward and sticking with it figuring out how the best way to construct your money.

Compounding is a way to beat the xx percent per month each say. Not only right compounding where you take all profit and reinvest because you then may have 11 months of positive returns and after that in your final month lose it(based on what you risk) Its about finding a wonderful MM to get YOUR egy. Not a google search for it. I have a fascination with compounding and investing. I might seem like a broken record with a lot of the posts I've like this one but I truly listen to the people who are successful.

As a good example to illue exactly what im saying lets say you have two traders. They both transaction all at precisely the same time with the same gain/loss of pips(only a case)and they both have the same exact size account.Exception for the is they utilize different risk, reward and reinvestment egies. One can come significantly before the other one. So one say 10% and the other may have 30%. Then when the trader with 30% took the 20 percent and tucked it away and then used the 10% extra to scale together with his identical egy he gets a free month at essence right there.

This is a truly extensive illuion but to get an idea about everything I said look in the trades for last month and then put in some different methods of reinvestment so far as the idea of compounding is. I hate math but I really like crunching numbers and studying all kinds of situations. If you believe solely gaining pips is the only part of the game you're missing out on a missed chance.

If you're someone who loves to backtest attempt giving a new money management egy a straight evaluation. I cant tell you everything that is. Before you purchase it invest in yourself in this business.

Originally Posted by ;

Hello Xenaga03

that I think that the answer is dependent upon system expectancy, and one's personal tolerance for risk. With leverage and also a compounding MM system, almost anything is possible. This is the response.

Everything else being equal, return and risk are directly proportional to standing dimensions. 20% per month may be attainable, if one is ready to dimension places to take on the essential risk, i.e. where bad months will cause large drawdowns, and also the actual probability of wipeout. Vendors promote their systems by quoting return, but the real measure of system efficiency is dollars (or percent) gained for every dollar placed at risk.

So is 20% per month, each month, realistically possible? I doubt it. Why? Compounding 20% per month equates to approximately 800% annual return, i.e. we could turn $5k to $10.5m in 3.5 decades, and to $2.5b in 6 decades. It would surely be interesting to learn whether any of the very best traders here attain anything remotely near this. I guess there is a major difference between concept and fact, particularly when the numbers get large: from the standpoints of both liquidity, and keeping discipline as one's personal comfort levels are stretched.

David

You're right, the bigger the account gets the harder it is to maintain your ROI.

However, the question asked for accounts at the dimensions of 100k$. With 100k it IS possible and probable to get 20% every month on average. (assuming you spend your earning every month obv.)

I make 1-5 percent each month, but only using a small account (~$10,000) risking 2% each trade. I think that is a probable ammount, do not understand what others make.

Regards -

Hi everyone
my first post, glad to be a part ofnigeriaforextradingcommunity!
Xenaga03
That is the largest financial market, by simply understanding this returns are unpredicted at a daily, weekly and monthly cycle, do not spot to get a percent but such a (large) return is surely achievable since it is the most volatile market.

Originally Posted by ;

Yes I was asking if it had been possible upto $100k. I had been reading one of this Market wizards publiion and some of the traders have obtained their personal accounts of a couple of million dollars and turned it into over $100k in a couple years. One or two of these ended up blowing it and beginning all over but I noticed the profits diminished following the 100k point.
Additionally, Larry Willi have turned $10k to $1 million in 1 year...
His daughter did the same afterwards, and two people can do it so it's learnable.

I understand that I am not any supertrader, but you can still hope

I know Im going to get hammered for it, but I am risking 5% on every transaction ($1k per mini). But on a winning streak, I might it up and include positions, and onto a losing streak(cold spells), I reduce my position size, therefore I shed as little as possible. BTW, trading on 4h/daily charts.

Risking 5% can be entirely fine as long as you use an extremely high accuracy system.
I do not really understand what egy you use but I think from what you've said, that even in the event that you risk 2-3% on every trade, 20% a month is a fantastic goal (knife vegas have comparable numbers I think).

I would concentrate on increasing your win/loss ratio. Instead of counting the money which you haven't won to spend on the beach.
To your query it's possible, but probably you will exceed the theoretical 2-5 percent risk. Measure the risk yourself.

Your question is more like can I make 1 percent every day?

I certainly think it is potential.

of course anything is possible. It is possible to even make 1000% per month. But all that really doesn't matter since the legitimate question is....is it realistically possible? Everyone has bad months, the best, the worst, the mediocre. If you try to think about making 20% per month every month, you will drive yourself crazy since you WILL have poor times. In my view, I believe it's best to have annual goals instead of highlighting it monthly.

But to answer your question again, yes it's possible but not easy. Remember, it's also possible you could lose 20% per month.

Reduce the target.... It will make you over trade or allow an opportunity goes off....

In case you keep record of daily progress it is not to be chased....

Oh and yes, it is even possible to have 10% in 1 day, but, it is not to be chased, it is a market given opportunity.