Making a Steady Profit?

I’m sure that time varies from retail trader to retail trader, but is there an average time that one could expect to see as to when they actually turn a profit once they get rolling in Forex?

Hi antonio,

Yes, as you’ve already guessed, it varies between traders. I’ve read that it takes at least 2 years to learn to be consistent. But then I’ve read about traders, who have been consistently profitable for 3 years, blow their account in the next. I share your feeling of wanting a point of reference as an objective to pursue though. I hope some of the more experienced traders here can help. If not, you may want to read this thread here in babypips by one of the cool FX-Men members about setting your own expectation.

Cheers,

Abandon all hope all ye who enter here. :30:
On a serious note, I hear it takes 5 years or more.

Cool. Thanks, flows. What I’m learning is very interesting and I know I shouldn’t expect hefty profits coming in. It’ll be great when they do come in!

Five years??? If that is why it takes but I would enjoy some returns long before whether they be big or small. It’ll be the right step in the right direction for me when I can get them to start coming in.

It’s always different for different traders, but in general at least two years is time period for most of the traders to start getting some profits consistently.

Doesn’t matter, it’s all luck. However long it takes to be profitable is when your lucky streak starts. When it ends or you walk away before then determines for how long.

I’d like to know your source for arriving at that conclusion because the actual statistics at the 2 retail brokerages I’ve been privy to over the past few years tell a very different story indeed I’m afraid.

The reality of those very comprehensive stats reveals the exact opposite of your view.
The vast majority of live retail accounts trade net negative.

The only ones that show even a remotely consistent profit over a +3 year period are generally significantly larger balances than your typical forum average & are the result of diversified portfolios.

Research tells me clients who actually manage to last longer than 6 months & who spend the majority of that time net negative, top up their decreasing balances at least 3 times before either voluntarily cashing out completely or being liquidated by the broker.

Very, very few retail clients run consistently successful accounts. Those who do tend to be either (ex) industry experienced personnel or savvy investors/punters.

You wouldn’t think so though by reading the many comments from those who regularly post on these forums.

Great post. I suspect this forum is filled with quite a few shill accounts, broker-dealers, and representatives who want to keep the illusions alive long enough to milk some commissions from newbies. Hence the unexpectedly high ratio of people claiming profitability (though with zero proof) when what is reality pales in comparison. Also, selectively curating content as is human nature - many members will not admit to failures and will only post about their wins.

I’d be willing to bet you can count on two hands the number of posters here on BabyPips who can claim net positive trading accounts after a full year - let alone three years or more!

Those who are truly successful over the long-term in the Forex market aren’t chasing after the illusion of 100%+ annual returns. They are using currencies to hedge other investments, to diversify their portfolio, and/or for carry-trade interest (5-9% per year at best). Naturally they (with their intelligent investing) are the ones in control of the six figure plus accounts.

As others have pointed out it takes a while…and frankly, when it comes to forex, time really is relative. Some make consistent profits within two months of starting out, some take longer. However, for profits to roll in consistently, well, that takes some trading experience…good luck.

What is the value of diamond, if it is as much as those stone?

The power of NEGATIVE is stronger than the power of POSITIVE.

Ignore those negative, because usually it comes from those failure.

No there’s not. It’s not: 5 days, 5 weeks, 5 months or five years. If you want to be a part time investor or trader, that’s one thing; if you intend on being a full time trader or investor that’s quite another. As you can see by the responses lot of opinions based on what people feel, have read or have been told the difficulty is no formalize structure you can refer to.

If you want to look after your own investments, then you should learn the proper way to invest. In most cases you’d be better off go to a qualified financial planner. They specialize in accumulating wealth and will help you to build a portfolio. If you want to trade part time or want to try to do your own investing, then you would use the same type of capital that you would use learning a new hobby.

Now we come to a full time trading business or career. There is only 3 things that can happen with a trade. You win x amount; you lose x amount or you sit on the side lines and pass on the trade. As a full time retail trader, you’re matching wits with Institutional traders from Central Banks, Hedge Funds, Investment Banks, Pension Funds, Dealers as well as very experienced retail traders that. They not only have big capital at their disposal, they also have just about every advantage available in the forex.

The number one reason most businesses fail in the first 2 years is the same reason retail traders fail:

  1. They are under funded. 2. Don’t have access to the same tools their competition has. 3. Don’t have the same support system while they are building their business.

Imagine opening up your own fast food restaurant on the same street as a Burger King and trying to compete with them. In order to get the franchise you need to have enough funds available that will put the balance of probabilities of success on your side. The company will give you all the tools you need to be successful based on a lot of past experience. A manager will come to your franchise and help you get up and running and giving you the benefit of their experience. Now on the other side there’s just you, with savings from your job, your wife or one of your kids working and of course you when you’re not at your day job and some material you got from the internet or book store, telling you how to be successful in the restaurant business based on the author’s version. The only support you have is a restaurant forum you joined and from your life partner until you start cutting into the family savings to run the business; how long to you think you’ll get away with " hang on honey, it’s just got to turn around, after all our prices are less than burger king and are portions are bigger.

To be a full time retail trader, you not only have to learn every thing you can about trading in the forex on your own, as well you have to know or learn how to start and run your own business. You have to be committed to it. I watch this a program on TV, “How I made my Millions” which is about people who have made millions in their own business, they all have different stories, but what they all have in common, is they never give up, they are always trying to improve and do a better job based on their experiences.

So ask yourself what am I trying to accomplish from the forex. Not how long will it take to make money, or is anybody doing this full time, or my personal favorite, who’s the best broker. No matter if you want to be a full time investor, full time trader, part time investor or part time trader the starting process is the same. Learn the basics no matter what. Personally I think the baby pips school is one of the best places to start. You need to do this because like everything success or failure will depend on the decisions you make. In order to make a good decision you have to gather as much relevant information that’s available to you, list your options based on what you are trying to accomplish trading forex and simply pick the least of the evils.

Don’t treat your forex trading like you treat a hobby, unless that’s what you’re looking for. If you’re looking for more, then you have to be disciplined and want it bad enough to do more. I’m a full time trader, I work from my home. My forex business starts Sunday night and the Sydney open and goes to Friday NY close.
The major part of my day is spent on learning more about being a full time trader in forex. Only a fraction is spent on trading. I have an advantage over a lot of traders in that I have been in my own business for over 40 years. Most of my time is spent learning about the forex business not about setting up a forex business. Anyhow that’s my opinion.
Gp

This is the best quote I have ever read in Babypips since I joined.

You no need to be the smartest guy in the world, but you must be persistent person to success in real world.

If there are failure, there must be a successful out there. If it is so easy to success in a business, nobody will have to be employed anymore.

Exactly. This isn’t mine but it’s a great quote. There is opportunity in the forex, but you don’t make money every day. Spend some time watching this YouTube
This mostly about retail traders and their experiences, as well as being an in-house trades.

Thanks for sharing bro. I will watch it later on weekend. Seems a lot of episode there.

I always believe there are a lot of opportunity in trading. It is no difference from a business by buying and selling physical goods. But the point is, by what way someone to spot the opportunity and grab the opportunity? The opportunity won’t walk to you and say hi, come grab me here. We must put a lot of effort to know when it comes.

Sun Tzu says: Opportunity are just for those who had himself well prepared.

As a trader, we need to be responsible on our decision making. Because we are the one who take decision either to BUY or SELL, either to CLOSE or leaving the money on the table. Only failure blame here and there.

Actually, they have a valid point. Not everyone can be a trader. Everyone are welcome to try and learn how to trade and lose all their money but you cannot call them a trader who can actually make money in a long run. There are some people that their skill set, mentally and psychologically are not fit into this no matter how they try. Same thing that everyone cannot be a doctor, engineer, a sales person, a teacher etc. You just can’t…

However, if someone can make at least 20% a year why not stick to it and keep doing it? The problem here is that the expectation is so high to the point of being delusional… maybe 20% is still high… how about 1-2% a month? No matter how much it is, that’s an extra money to be made and save. Some people are just like to whine and complain about anything and everything…just because they are not “rich” yet its already impossible. They will go broke if they will keep doing it… or maybe they are already broke that’s why they are whining :)…Can you make at least 1-2% a month (initially)? Seriously is that difficult thing to do?

Rightly said… This is the fact of retail traders…

Yes mate. I do agree what you have said. What I don’t agree are why complaining everything and whining or even accusing other factor to cause on their own failure? It is just like spreading some negative energy from their own and as I say, negative power is always stronger than the positive.

Nothing to whining about. Either to learn from the mistake, or just get out of it if they think doesn’t suitable for them. No point because 18+ years means they are mature enough to make decision and not a child anymore. Spreading those negative energy will not helping others and not benefiting himself either.

1-2% a month wasn’t difficult to anyone who have himself well prepared and discipline person. But the point is 60% of those who failed are very bad in Risk and Money Management.

In my opinion, this is the best business in the world which is ready made. Just treat them as a business, and you must put effort with a good business plan, having a good view of opportunity to the journey of success.

The beauty of this business is you can buy goods for 200k and your collateral are just 2k. Try deposit your 2k and request the bank to loan you 200k to start a business? Do you think the bank will loan on you? But you can easily have it in Forex. The facilities are there, but do you know how to smartly use on them? That’s the point.

Superb post… Many do not understand this concept and therefore fail to succeed in forex… Am not an exception…

90-90-90. 90 percent of new traders lose 90 percent of their account value in the first 90 days. Get past that and you may have a chance. Never give up. Read and meditate. Focus on discipline and strategy. Use an antimartingale position sizing algorithm. Don’t trade someone else’s beliefs. Think for yourself, question authority.