What can be a real profit per month?

There are so many systems and strategies. Developers promise 40% 50% 80% per month. All this sound too good. Sure thing it can be a month when you make such profit but make it 12 month in a row and have 600% 700% income in one year. Unbelievable for average trader.

So now we are talking only about live trading with real money. What real profit you can expect from a Forex?

More information: keeping in mind rule to use 10% of your capitale per trade.

Search the forum and you will see countless replies to threads on this!

On another note- 10% capital per trade, are you kidding?!

While this is not a common strategy, if you were a trader that preferred many small winning trades and only a few large losing trades, risking 10% of your capital per trade would be acceptable.

Example:
stop loss at -100 pips
take profit at +10 pips

Your Risk reward Ratio is 10:1

But, you are 10x more likely to take profit on each trade then hit your stop loss.
If your win:loss ratio was greater then 10:1 you will be a successful trader!

This is too much for one single trade! I can not even tell on what trades you should yous such amount of money.

:smiley:

Quality advice

10%!!! :eek:

I’ll give you a week… [B]TOPS[/B]! :D:D:D

There are ways to safely trade large percentages. It does require a more rigorous understanding of money management and finance, however.

Maybe, but risking 10% of your capital for a 1% gain, as suggested by odi3, does not sound like a viable long-term plan to me. In fact it sounds like lunacy. I never take worse than 1:1.

So what % of the capital you whould trade with?

Me? I risk 1% per trade. I think that that puts me at the more conservative end of the scale, I know that there are many on here who risk 2%, 3%, whatever. 1% works for me, I like to limit my risk, then move on to the money making part. But for me the key point is that I would never risk more than I stood to gain on any given trade. I never take less than 1:1 R:R, and prefer better than that.

Why every body so freak out?! Hundreds of traders blow up there accounts trading with much more less amount of capital. What is so unbelievable? :eek: Everybody has a right for his own opinion, maybe he will be a milliner soon!:slight_smile:

You act like he said: " hey I know a new way of making money: let buy high and sell low!"

True most blow up their account. :slight_smile:

Inexperience, the lack of a good strat and dare I say… poor money management? :smiley: I’m reasonably confident the handful of experienced retail traders in here who ‘actually’ make a living at this wouldn’t risk more than 1% on a given trade or fractions of 1% on either multiple entries on a cross or crosses. Also consider this. As your account grows or if you are already trading a large bank roll, you do not need to risk more than 1% to make a very good living or compound up your balance to very big numbers indeed in a few years! ‘Slow and steady wins the race’. :wink:

I was simply addressing the idea that risking 10% was a sensible approach to making 1%. As many new traders use this site to learn from, I thought I should put forward my view that reward and risk must be better balanced than that if trading is to be successful long term. ‘Freak out’ is a bit strong!

Quite: on an account of £100,000 that is a minimum £1000 profit per winning trade. Most decent strategies will at some point get your account to £100,000 if you start with a few thousand. Play the long game with a decent strategy and you really can’t go far wrong. I would suggest that that is a much stronger approach than that of those who advertise systems that give a 50% monthly return. etc.

WoW! So many posts! There was a wrong formulation of my point: you should not take more then 10% - that is a limit.

We are far from my main question about profit in a month. What you can expect. Sure thing any profit is already good and if you have row of successful month - GREAT.

I wanted to add point about 10% because you bet your entire capital for each trade and a have a great profit for one month before you fire up all.

I make around 5% from Forex and 15% from stock trading, these are my monthly averages. I usually withdraw around 5%.

One month my account was actually down by around 4%, so I “punished” myself by not withdrawing any wages that month.

As you can see I am doing a lot better in the stock market however I haven’t really given forex a chance, I’d be interested to see if other traders here are in the stock market too?

On Forex you can make 10-20% average for a month. More - possible, but it is also a bigger possibility to lose money.

I hit 10-30% a month on Forex. I plan to start stock trading next Spring, assuming that I am still hitting that level of return in Forex - I am sticking to just Forex until I have posted 12 months in a row with a return of over 10%. Then I can fund the stock trading startup entirely from the Forex income without affecting anything else.

Awesome. I realy like it! Make money on Forex and invest it to stocks! Great!

I’m still relatively young, so am playing the long game on this, am happy to take a steady approach, careers don’t happen overnight. Wait for a year’s good results in one trading arena, get to the point where I have the disposable income that comes with that, and hey presto, stocks becomes a risk-free investment.

I had Forex tuition, and will go on a Stocks course, too, when the time comes, so with that and my seed money for the account (plus the expected learning losses) there will be a fair lump to shell out up front, but it worked for me on Forex, and with this plan it is funding itself. I am lucky that I make enough from Forex that I will still have an income on top of that which I spend on Stocks. I have to love a risk-free, cost-free investment!!

(Okay, I know that it is not free as such, but you know what I mean)