hi guys
i would like to know with a initial investment of $1000 could a average trader with a one year experience sustain a monthly return profit of $2000 lets say for 4 years.is this goal realistic in the field of forex trading
thanks
No, it’s not.
thankz for the quick reply .would you mind telling me why it is not, and what would be a realistic goal.It would be really helpfull
Even if you’re trading with an edge, you’re almost just as likely to lose the amount of money that you are trying to make. All systems will have drawdowns, all systems will have periods when they have multiple losing trades in a row. If you’re trading with a trade size that allows a $1000 account to make $2000 in a month, you’re very likely to lose your starting capital. If you face any bumps in the road you’re going to bust.
lets say you make 25% per year (not very good, but average for beginners who are consistent)… you would need $1,000,000 in the bank to earn $2000 per month.
Think about it a second. after training for something for one year do you know any kind of activity that will give you an annual return of of 2400%?
Why would people bother to go to university? or become a vet or a doctor? Why would we not all be gazillionaire forex traders?
if you were asking "Can I achieve this level of return [U]in[/U] 4 years with an initial investment of $1000?"
It would be possible, however you will need to consistently return 7.425% every month for the next 4 years.
(best of luck!)
it’s engrained into our minds thorough our society that we have to have to go to university to earn a substantial amount… the truth is, we can all potentially make far greater than doctors… people go to university and dismiss the option of trading due to the risk and psychology involved. University degree = job = rather consistent. Trading = potential of losing everything you’ve ever worked for in a matter of days.
N.b. For interest sake, check out Dukascopy’s ‘trader of the month’ contest… one guy pulled in >1000% account balance for a single month. (live account, and not using an EA)
You asked for a reasonable target as well. If you have $1000, you would be doing really well to make $500 in the first year. 50% is great.
If you want to make more money, you’ll need to have more money to trade with. I would recommend starting off with a small amount though with reasonable targets.
+1!
That would actually be a reasonable goal.
Yes it’s ingrained in our minds that we have to go to university to earn a substantial amount; even though it’s not true.
However that’s not the point Dafttrader was making.
He’s just saying you need to work long and hard to succeed at forex.
It’s like everything else.
Trading = potential of losing everything you’ve ever worked for in a [B]matter of days.[/B]
Maybe with poor money management.
N.b. For interest sake, check out Dukascopy’s ‘trader of the month’ contest… one guy pulled in >1000% account balance for a single month.
Not sustainble, IMO.
However shows what can be done.
Dollars, and pips mean nothing. Its all about RISK ADJUSTED RETURNS
I think it’s feasible. I’ve noticed how many folk are so pessimistic about this trading! I’ve paper traded, learned, read and now use real money. I play small cash and will build up over time and more experience. I think it’s quite reasonable to make £100/day using £1/point. My friends farther has been into stock and shares for years with a very impressive portfolio. He uses his knowledge on spread betting and is making average of around £400-£500/day…again £1 to £2/point. Its because of his advice i bit the bullet and started trading real cash. Some days are better than others and losses do and will occur( which is brilliant way of learning by the way). So my opinion is yes I think it is possible, dependant on how determined, skilled trader you are…
The reason is there is high chance you’ll blown up your account in the first week.
A realistic goal will be to survive your $1000 after first month.
It’s not pessimistic but rather the trading truth. People hardly can handle the truth when it comes to losing.
You really think it’s easy to make $100/day using $1/point? Good-luck!
Not sure if some of your math is terrible.
Or
Some of your expectations are hella low.
On a $1000 dollar account with the variables of risking 2% a trade and say a 10% a month goal which is TOTALLY ACHIEVABLE despite getting some losses, which means minimum lets say 5 trades aiming for 2% each. With the same given criteria your looking at according to my spread sheet you should reach the minimum of 1919 per month on your 32nd month of trading.
That of course given you get 10% a month and only risk 2% consistently despite losses you still keep it at 10% a month.
Yeah, and your reading skill is terrible.
OP wants to make $2k per month for four years starting with $1k. Not $2k / month [B]after[/B] four years.
First month you’d have to convert $1k into $3k.
Good luck with that!
Yes and your reading is also terrible in the fact that you assume right off the bat he just said he wants to make 2k a month with that 1k. The assumption is that he doesn’t with draw it often.
That’s also assuming he withdraws it monthly and doesn’t let the capital grow to allow to compound to make it easier for him.
“[B]a monthly return profit of $2000 lets say for 4 years[/B]”
Also I should clarify the math statement was directed at Jong.
2% of 1,000,000 is 20k
2% of 100,000 is 2K
If he meant what you think he meant, than the answer to this question would always be yes, given average = good.
Moreover average monthly profit of $2000 would be easy for good traders.
It all depends on skill of OP.
I didn’t assume that.
Anyway, the OP can be easily misinterpreted. I might be wrong. Either way, I rest my case 
!
Given such a scenario, it is far more likely that the trader with 1 year of experience will end up quickly donating said $1000 to those who have outgrown their wild gambling instincts, namely the trader’s bucket shop who offers 200:1 leverage to entice a blowout.
By the way, if you think 1 year in forex (or any trading) is experienced, think again!