I’m still very fresh in all this, working on my strategy, money management and everything.
Anyway, I was wondering, what could a seasoned semi-pro do, if you’d give him $10.000. Is it likely that he could turn this money into, let’s say, $20.000 in a year, without taking too much of a risk? Is it possible to have this kind of gains, if your account’s exposure is max. at 6%? Or do you need to take bigger risks to achieve a 100% return?
And what do most of you find easier to trade - Forex or Stocks?
Sorry for my n00bish questions, but I’d like to hear your answers and opinions. Thanks!
it all depends on the trader, i have seen people start with 5k and turn it into 25k in 1 MONTH!!! so it all depends on strategy, money managment and mental discipline. In this market ANYTHING is possible
With all respect to the traders mentioned, I’ve also managed to turn my virtual account from $50.000 to about $120.000 in two weeks, but my money management was good as none. I’ve risked a lot and I gained a lot. But I’m not sure I could do this with real money. I was more gambling, than trading.
100% per month is, I believe, not possible, if you practice some kind of money management. A friend of mine, who is servicing our photocopying machines, turned �1000 into �4000 in a month by playing with options. But in reality, his knowledge about stocks is very limited. He managed to do this a few times in a row, with smaller gains, but now, a month later, he is back where he started from. I believe he is lucky not to loose all of his money.
And if someone could make 100% per month, soon enough, he would own the world.
If I could make 10% per month, on my total equity… well, that would be much more than I could ever want! But my base capital is going to be small ($10.000) and even if I made 20-30% on my total equity per year, it would take a life time to turn this kind of money into, let’s say, $500.000. And in stocks, everyone, who can make constantly 25 to 35% gains year over year is a certified genius…
well as I mentioned anythig is possible…you can make 100% or more one month and next you can lose it all…again its all about the trader and the system they implement…
well it depends on your risk tolerance as someone previously mentioned. When I first started FX i was a newbie and risked too much but in a 1.5 year i turned $300 into $120k, i know it sounds too good but i like to think of it as I just got lucky…lol
after that i decided to quit engineering and opening my own money management firm. of course now i dont take too much risk (i risk 1-3% per trade) and i trade only +95% probability trades.
so with a 1 million capital now (not all mine, around 500k for clients) I make like 100k a month (50k of that for clients)…so yes you can make it in forex but you need to get lucky at first (like me), have capital or get to know a good money manager.
I’m still only demoing myself, but from what I gather what you said is simply not true. Once a trader gets to a certain critical mass they either take it out or trade with much smaller risk percentage. And of course you would simply get to a point where your lot sizes would be so huge there would be fewer people on the other end capable of filling the order.
I think it’s more likely that yes you can increase your account by 100% a month , but only to certain point. What that point is, I don’t think any new traders are in danger of reaching any time soon.
Just from reading this board, very deeply, I’ve come across literally dozens of traders who claimed to make 100% or more a mont on their live accounts.
Loaded question. Depends on the traders style. Swing trades like 1 week or more I think is not gonna triple up in 6 months. 500% a year returns are possible with part time trading. Bad question to start off with 2 million to 1 dollar would all be correct and acceptable answers.
And of course you would simply get to a point where your lot sizes would be so huge there would be fewer people on the other end capable of filling the order.
Yes, eventually you would be limited to the size of order you could make, but i doubt a retail trader would ever get to that point.
I think it’s more likely that yes you can increase your account by 100% a month , but only to certain point. What that point is, I don’t think any new traders are in danger of reaching any time soon.
Its possible to increase your account by 100% in a day, a week or a month, but eventually you will crash and burn.
I would suggest start off by thinking, how much am i going to lose? what is the worst that could happen if i place this trade?
If your patient and willing to put the effort in, the +% returns will come, limited by how much skill and knowledge you attain, so really it is upto you.
And a side note, dont try to trade the news, develop a solid trading technique and practise practise practise, just trade your chart in front of you.
I think the first time I put in $1000. If I remember right, I closed it at $600. Next I put in $3000 in an account which I still have with a little less in it now. Then I put $3k in a managed account. The trader lost most of it and Sparen FX stole the rest. I put $3k in Eureka trading which was promptly stolen by a “margin call at the broker level”.
Noobs, dont be discouraged by my results. I havent put in the effort required, but I am working at it.
You guys hear about the SAC Capital scandal that’s been in the news more prominently lately?
Basically, this entire hedge fund got busted for loads of insider trading on stocks. They had a clear, distinct advantage as they were trading off of material, non-public information.
They managed billions (yes, with a ‘b’) of dollars before that all fell through, and had heavy incentive to drive returns. Steven Cohen (the owner/founder) was legendary for the ridiculous returns he could return even AFTER THE HUGE FEES he brought in…
On average, the yearly returns came to somewhere around 60% (before fees, but nonetheless).
So let’s let that sink in.
A high-end hedge fund that was heavily experienced, highly knowledge, highly motivated, and VERY WELL CONNECTED WITH ILLICIT INFORMATION was legendary for returning 60% yearly. You really think you’ll be pulling triple digit returns yearly, consistently? I’m not trying to crap on your dreams, but it’s important to make sure you keep a realistic perspective on things. If you aim for 20-30% yearly (which is pretty DAMN good returns, mind you), you’ll be much better off
