I’ve been investing in stocks and shares for about 6 months but I am totally new to forex as of this week. I am going through the “school” learning now and hope to finish this soon. I’ve also ordered a few books on forex trading and technical analysis.
One of the forex training website I came across suggests forex traders earn upwards of $100,000 a year. I would suspect that professional forex investors (investment companies, banks, etc…) do earn this kind of money, however that will be small figured compared to how much they are investing. What I am interested to know, whats the average earning for small private investors like myself starting off with a few hundred dollars.
I would also like your advice on how much experience I should have before starting to trade with real money.
I’m sure this question is the most popular on any trading, horse racing, poker forum.
To put it quite simply if you can make 25 - 50% per year, that would put you in the top end of trades returns per annum.
Now starting with a few hundred dollars, $300. You will make $150 for the year if you can manage the 50% return. As most winners approx 5% of all traders often quoted, will be happy with 20% pa return, your now looking at $60.
Hope that helps understand your potential profits.
Making 50% in a whole year doesn’t seem that attractive to me when I compare it to dealing in shares, where I make between 200 and 400 % per year. Albeit I invest a lot more money than just a few hundreds dollars but the percentage gains are a lot better than 50%.
LOL, i think you would have then just deal with your shares…and make that 200-400%/yr.
Wonder that if you make such returns, which i am sure you do, if you say, right?, then
A. why are you so greedy that this isnt enough to you??
B. how come that with such returns you have few 100s to invest??
I am sorry, but i dont think you are serious, saying that 50% isnt enough return a year. In fact many legendary fund managers did avarage maybe 30% and did long enough to be legends, like Peter Lynch, George Soros…
Or just keep in mind that the scammer Bernie Madoff could collect billion $ investment money for a promis of a stable 1% a month (12% p.a.)…
anyway, when your bank is offering about 2-3% interest a year, making 20-50%, especially with keeping risk still relative low, IS A LOT INDEED.
You can make more, much more than that as a little forex investor, but then you will either overtrade, have a very suicidal money management, or both…but yes, you can make 2000% a yr or more just as well, though it will be like any other gambling, and luck runs out sooner or later.
I used to trade options and bring in upwards of 5000% a year. Due to a new schedule I can no longer be around during market hours, so forex is my only option. Seems like people do not make nearly as much though… 100,000$ is weak for a full time trader imo.
Threads like this always generate such balogne, there is a huge difference in an investment and trading forex. If you dont understand that yet then you are really not one to be talking.
Just to clarify the difference, an investment is managed by a third party, your total involvement is to spend 30 minutes to sign up and give them you money and then do nothing expect wait for the profits at the end of the year.
Do you really think someone who invests many months and years of their own time studying and learning forex trading, and spend sometimes many hours a day studying price charts and indicators should expect the same kind of returns as someone who spend maybe 30 minutes of their life signing up to an investment policy ? That is such ludicrousy.
There is simply no comparison to be made between trading forex yourself and investing money in any bank, or investment fund.
The positive with your 5 trades is you have let them run to maximise profit as most new traders panic and will take profits ASAP. The concern is what is your stop loss on the two in negative territory.
The reality though is, don’t let a bull market of the last six months, let you think that this is how easy trading is. Have a look back from March 07 to Jan 10. Very difficult to make money in the share market.
My question to you is, do you think on 5 trades you can confidently say you are going to annualise 400% profit every year?
Good luck, remember if you have capital of 100k and compound, 25% sounds very good. Most people start undercapitalised and trade beyond their means because all the hours for a profit of $6 using the old 1 to 2% of your account doesn’t sound very exciting.
I currently don’t have stop losses for the two which are down, only because next year they will go mad (i mean up). I’m not going into detail, but if you want to research them you’ll understand why. Unlike a lot of traders I go for extreme risk stocks, like these listed on AIM. I’m not interested in making 5% here and there.