It really depends on so many things. This is not easy to all experts to make profit in each of every day. If you learn Forex trade well then your monthly average income would be great.
So don’t worry about it. Just concentrate on learning.
That may be true, but then again a trader who would care to find the right approach and has the right focus would not dismiss strategies or ideas just because they are not capable of doing so.
There are ways you can become simply competent, without pushing yourself to become excellent (where you have to take yourself outside of your comfort zone). With trading, granted, its tough to become ‘simply competent’ as the market forces you to adapt. But when it comes to risk management, some people are either not willing to work on themselves or are in a life situation where they just don’t have the mental bandwidth to focus on getting bigger and diversifying their style. There are plenty of traders who make just enough money from trading to keep their bills paid, and that conservative approach suits them just fine because if they leave their comfort zone they start having to deal with risk.
Hi there
I am also a newbie and i can only tell you of my own experience. I started the babypips course less than 2 weeks ago and at the same time opened a demo account with 3000 usd. My current balance is 5326 usd. Out of 14 trades i had 10 winning trades and 4 losing trades. I don’t know if that is good or bad or maybe just luck, but i do try and apply the principles i learn in the course and stick to them.
If my doctor was “simply competent” i’d get realy scared! If you want exceptional results you must put in exceptional effort. You either do something fully, or you don’t do it at all.
Nope - the top traders at prop firms do not make 20% a month consistently.
And hedge funds that make 20-30% annually still get drawdowns of 20-30% a year.
They certainly don’t make 20% a month consistently, we’re talking averages not absolutes. Sometimes it can be more, sometimes less.
Measuring it strictly in ROE terms is admittedly a bit tricky in this situation. Unlike solo retail accounts, at a prop firm you operate on a sliding buying power scale. The question of ‘what is equity’ gets a bit murky - do you have a risk deposit, or is the brokerage taking it on their balance sheet. But it doesn’t really matter because your leverage is up to the risk manager’s decision.
Top traders have a positive skewed distribution of returns with fairly minimal drawdowns over a large sample. That enables risk managers to give them sufficient access to leverage so that they can make six-seven figure years. At that point ROE just becomes an accounting issue.
I dissagree with alot of people say, in terms that to trade for a living you need to have a large amount of capital. I disagree and believe that you can easily start off with as little as £100 if you have a solid strategy. If you have a solid strategy there is absolutely no reason why you wouln’t be able to turn that £100 into £150 by the end of a week, all the money soon mounts up. Just imagine if that was 1,000 or 10,000.
I think alot of traders are successful but the ones which are generally keep their systems and tricks to themselves. I remember watching a webinar a while back on ForexPros and the guy showed everyone his account (not deliberalty showing off, he just clicked through it) and he was up £250,000 in his broker account, so some people do definitely make a hefty sum of money.
on what lot size?
A traders earns from foex as par his abilities and skills. In this contest his account balance is also important. With high investment he can take risk because he had a god back up to compansate his loss. With low investment as $100 A trader with managemnet can get only $1 per day. Other wise his risk would be high.
In the long run it is not possible. Simple maths.
why 1000 instead of 100? starting with 100 you would reach 10000 in less than 3 month,
in 1 year you would become by far the richest man in the world and by the end of your second year there would be not enough money in the world to pay you.
Yes, the math does not work out like that. You can easily double from $100 to $200, but it will not be the same form $100,000 to $200,000. Traders should sped less time on doubling money and just trade. Every day will be different so just earn as much as you can.
The average Forex trader is a fool, so I wouldn’t size yourself up to him!
The most important aspect of Forex trading is good money management. You will never be a successful trader (whether forex or stock or whatever) without this very important trait.
Read up on it and apply!
I think it is very important to stick to a defined trading strategy and not adjust it once a trade moves against you. I also think a lot of people have no idea how to take profits and a hard time accepting losses.
I disagree about it being a math related issue per say. If a trader trades a system with a positive expectancy (be it mechanical or discretionary) and has a good sense of where to get heavy and where to sit back, it mathematically is possible for sure.
The main issues with turning small sums to large are psychological. You have to take a lot of risk on each trade, and that becomes very challenging when you inevitably run into a dry streak.
Yes, I agree with you that it boils down to psychology which is why so many traders fail at it.
So do you think that becoming the richest man in the world in 1year starting with 100$is just a mater of psicology? Do you think markets give you a chance to destroy them and world economy in 2years if you just keep trading your strategy without emotional mistakes? Is this a realistic aproach?
Totally agree!!!
Hahaha your calculation is good!!! I agree with you!!!
Lol… Totally agree…!!! I think we should teach them how to compute compound interest!!!