Hello folks.
I have learned about Forex a month ago and have been studying the content of the School of Pipsology since.
Right now I’m daydreaming about quiting my job and making a living as a trader someday, but I’m aware it’s no easy achievement.
I have an initial capital of US$ 10.000,00, and I can add US$ 300,00 to my account every month.
My dream scenario is to make my account worth more than US$ 100.000,00, and earn US$ 5.000,00 per month average, within 3 years of trading in Forex. That would require a profit of 5,5% per month in average.
With those numbers, I’d be able to fulfill my goal of changing professions.
The thing is, I don’t know if I got my head too high above the clouds. Is this goal achievable with prudent investment or would it take too much of a risky approach?
I hope you can help me with this one, since I want the development of my profile as a trader to be hand in hand with a realistic goal.
Thanks in advance.
5.5% per month (on average) is achievable as a retail trader on the account size that you discussed, there is no doubt about that, period. Achieving this in reality is of course always a different story, however if you took trading to a professional level as a ‘retail trader’ then I don’t see why you could not achieve this target.
The 5% per month is doable, though if you want it to be consistent you need favor certain time frames and strategies over others - meaning higher frequency and shorter holding periods. Make sure in your 5% calculation that you’ve accounted for taxes and other expenses. Also, you’ll want to consider that making and withdrawing that 5% means no growth in your capital base.
My bigger concern is getting yourself to the $100,000 in just 3 years. You’re a new trader for starts. Developing the sort of skill necessary to achieve your objectives takes time. It doesn’t happen overnight. Further, even adding $300/mo to your account for the next 36 months you are going to need VERY significant returns to get your account up to six figures.
Its doable. I am up 19% in the last month, but admittedly that was on UK stocks, no forex trades in the period. These were swing trades only, no daytrading.
I’m in the wrong business! 
Why does everyone try to overlook this fact and treat it as if it’s insignificant?
OP rather than thinking about getting to $100,000 in three years you would be better off studying, testing, practicing ([I]screen hours[/I]), managing, structuring, doing psych work, organising, adjusting, understanding what you took for granted, rinsing and repeating numerous times over and over during the next 3 years… and then you might be at the point where you have gained enough consistency, if you haven’t quit by that time of course, to make the moves you are thinking about
1 month in trading and doing baby pips school is like reading the label on a pack of spaghetti, it does not make you a world class chef!
Sorry if it sounds harsh but you need to hear it [B]before[/B] you go and blow that $10,000.
You would really hate me if I told you how simple the TA for these trades was.
I don’t think anyone has overlooked this ‘fact’. However, the principal question was around the average 5% gain per month, not how it would or would not be achieved?
This is the very difficult part, as Rhodytrader mentions, above.
It’s [I]possible[/I].
It took me a lot longer than your time-scale, to do the equivalent. It took me about 3 years to learn how to do it without losing money, and another couple of years’ practice and experience, [I]after[/I] that, to be able to reach 5% per month steadily, so that that “average” actually translated into reality, without big drawdowns, etc.
If it helps, this was [I][U]how[/U][/I] I learned.
And welcome to the forum.
I think 5% per month is a realistic goal.Some people dream daily high profits even want to double their amount in every trade. 5% is normal target you can make easily with planned trading . You have to make strategy to use risk according to your investment. This is achievable task you need not to take tension for it.
Did you even read his post?
He wants to know if he can turn $10,000 into $100,000 within 3 years and make $5,000 per month on average so he can change profession. That’s what is important to him…not if a 5% gain per month is ‘possible’ for anyone else smh.
I think you need to read your reply, what use is wanting to achieve £100k if 5% per month is not realistic haha. Good one!
The title of the post reads “IS MY GOAL REALISTIC”
Please say you are joking because i find it hard to believe that you can be that simple.
He has 1 month forex experience! If he [B]breaks even[/B] year 1 using any standard risk management then he is doing extremely well.
No his goal is not realistic in the time frame staring from zero experience with no intensive one to one mentoring by a proven professional for the duration, which i assume he doesn’t have by the question he has asked.
That’s the end of my input on this subject.
It’s just stupid and irresponsible to go down the yes bla bla bla % is realistic when anyone with any experience knows what is required to hit that sort of target.
Yes it takes experience, however that’s clearly a given and again I will reiterate his original question. “Is 5% possible”, yes it is.
I will also reiterate my original reply, “haha good one”.
For a beginning trader, you might get lucky every now and then hit your monthly target but it’s not going to be consistent for you. On your first year trading live, trade with the least leverage that you can with your broker. This way, the “tuition” you pay to the markets will not put a dent on your trading capital.
Don’t day dream, don’t quit your job. When you trade successfully for at least 5 years only then think of quitting your job.
it is possible but not likely. Most people lose money so you’ll probably lose $300 a month rather than get a net worth of $100k. Take it slow. Use a demo only use real money when you are CERTAIN that you know what you are doing
Thanks for the input.
I’m aware that it takes time, study and practice before even considering gaining money in Forex.
However, I didn’t mean that I want to start trading out of the blue, I’m really keen on having a solid preparation prior and I’m not going to throw my savings into a real account unless I already have some degree of security. Perhaps I should have made myself clear.
The real objective of the original question was to have an idea of how much money I can earn in Forex with my initial capital and, of course, after I’m ready to start trading for real. I have just been introduced to Forex and it would be rather foolish to invest time and expectation into learning the trade without knowing if I can actually make the money that I expect in return.
From what I gather out of most answers, I’m to believe the goal set is not unrealistic for a competent trader. The thing is: how long does it take to become a competent trader? I don’t have any illusions that I can achieve this status overnight, but just like anything in life, it depends on how much effort I put into it, right? And I must say I’m enjoying my experience so far, which makes feel optimistic that I can build a solid foundation before I get into the real action.
This is a brand new world to me, and it made me very excited. I know that I have to take care not to let that excitment turn into delusions. Like I said, doing that in three years would be a “dream scenario”, thus I know it wouldn’t be the most likely, and believe me, I wouldn’t be willing to take unnecessary risks to follow any kind of timeline. Even so, I must believe in myself, in my intelligence and commitment, that I can achieve my goal sooner than later.
Anyway, I really appreciate your sincerity and I agree with your assesment regarding the numerous strenghts one must work on in order to be a successful trader. Just please, take my question for what it is, the first post of a newcomer wanting to know more about the potential financial returns of Forex. I’ve read all kinds of things about potential profits so far, from people who claim it’s very hard to make any kind of money to the ones who claim 30% per month can be done. You can imagine how confusing it can be for someone who didn’t even know Forex was a thing roughly a month ago.
P.S. By the way, aside from the School Of Pipsology, what other material would you recommend for a newbie? I’d have PM’d you but I couldn’t find where.
P.S. 2 Thank you all for the replies, any further feedback will be appreciated.
Forex is good rewarding lucrative business and trading with big investment give the desire result and your goals are realistic and you can achieve your profit target but you will have to show your consistency in learning and positive attitude.
Thank God you mentioned it, Service - without the benefit of your insight, none of us would ever have imagined that you need consistency and realistic goals to achieve trading success. The reality is that it’s your posts here that are [I]totally[/I] consistent.