I had already realized that we were cut from the same cloth
It is a huge pain to me as well to look and hear people bragging about how much they will make at the end of an X period of time. Some pyramid schemes promises returns as insanely high as 100% per month. We have people right here in our country who claims to be traders and promise to turn others into millionaires, yet they charge a fee for that. And uninformed people fall for it. I mean if one can make someone a millionaire, why not save the hussle of marketing and simply trade their millions into further more? Why would they try to convince you to give them a mere $1000?
People, especially the desperate ones never listen to someone with sound advice. All they need are the sounds of a quick fix to their problem, whether realistic or not. they just do not care, until they realize they have been taken for a ride.
To be honest, trading is only simple when you trade from the left hand side of the chart. (Or Hindsight as the literate puts it). Trading in real time is never a walk in the park. There is so much more to it than simply picking up the direction of the market and clicking buy/sell.
Thanks a lot. Managing expectations has been my number one goal ever since I blew my first account, which I always laugh about looking back. As for trading firms, I picked ones that would never milk me dry. I only paid a refundable once-off fee, which I have already received back. I mean, worrying about risk management is enough trouble. I couldnāt afford adding more worry of having to make so much money to maintain the account. What if I fail to make profits for the month? I have had dry months in my trading career and this has taught me a crucial lessonā¦
Most people come into the world of trading from the wrong angle. Just the same way as I did.
Lets look at a scenario where you are looking for employment. You would search for jobs that fit your profile a.k.a āresumeā or CV. Anything beyond that would be chance taking or a gamble of some sort. After getting the job, you will respect the job like your life depends on it. i.e be disciplined to follow orders, be early, meet deadlines etc.
Funny enough, when that same person comes the trading world, they do the exact opposite. They never take the time to hone the craft as they did with their other skills in their resume. Of course with other professions you can get away with forging your resume and add skills you do not even possess. Unfortunately you will pay a heft fine if you dare lie to the market about your trading skills.
To make matters worse, they canāt stay as disciplined as they would if they are under someoneās thumb. Just like you would be fired in a job if you do as you please, the market will spit you out like used gum if you do as you please. (At least with a job, you might get paid for being fired, but in the market, you do the paying.)
It is paramount to realize, way before one gets into the market that, it is a job that deserve the respect due to it. What I have also realized is that people get sold the illusion of freedom in trading, and get wild ideas about it. The idea of freedom while making money is attractive. But honestly, freedom comes with responsibility. Yes, you might be free from human supervision, but you still have your trading plan to answer to. You still have emotions to tame, discipline to subscribe to every minute.
I made it to where I am right now, from blowing my account to trading prop funds because I managed to realize I wasnāt respecting my job as much as I was supposed to
Ok so like more than half of you on this page are making jest of me for saying what I said but I wonāt say anything elseā¦ I hope we will all be here in less than a year and Iāll show you how possible my theory isā¦ Iāll keep working on this my $18 account and when I grow it up to $1000 Iāll show you all and prove all ye sons of bitches wrongā¦ Thank youšā¦ I aināt saying ā ā ā ā on this topic again
Bro, my topic was how much monthly return is enough.
But we are going out of the topic.
I donāt know what to say, but the main reason for this topic was to find a way to gain at least 5-10% per day. Which is ironic. Because 2-5% is enough for an institutional trader.
I am just finding a way to make it possible. You said earlier-
I agree with you bro 100% in your opinion. But in a lower-earning country like us, we have no jobs, no extra earning source so we found trading in Forex is an easy way to make some bucks (which is not by the way)! So, if I or anyone find a way to gain at least 5% per day then it will be a nice way to earn our livelihood.
What is your opinion on that? (I know itās ironic to ask you again) but how much probability is there?
0.01%?
0.001%?
0.0001%?
0.00001%?
I am waiting for your precious reply bro. Share some experience and some tricks to stay long in the game. It will help us to find a way to escape the trap of poverty. I hope you understand brother.
Well, thanks for that. I havenāt heard of a strategy consistently delivering an average +5% per day.
Alright, OK, yes its possible (and easy) to win big if you spot a great one-off opportunity and you ignore sensible risk management. Iāve done that, made more than 10% profit on the account from a single trade more than once. But it canāt be done repeatedly - like running across a busy road without looking - lots of adrenalin when you make it, but try doing that every dayā¦
Anyway, you say it can be done, I say it canāt. You must have some evidence it can be done and you can post this at least in outline. If you donāt want to give up any details, maybe you should just go off and run your trades, and we wonāt need to hear the outcome one way or the other.
Look, we have to be honest with our fellow traders around here. the question on this thread was about if you can make a living off a small account. What you @DavisOghene2527 is saying is that you can compound it into a substantial amount. Not live off its returns. Thatās possible as much as winning the lottery is. What most of us here are trying to point out is that, for you to make returns you claim, it mean you are betting the farm, which is a surefire way to lose your account.
@Veteran_Trader.2001 Practically itās not possible. Yes with aggressive approach some may make 100%/200%, but consistently itās not possible. Next time they blow the account and loss everything.
Broker makes money because most retail traders lose money. Money maker broker open trade against every trade. You lose they win. As most people lose, so they make money.
This suggests that the broker is the counter-party to your trade. Which is not what I have come to understand. Of course, Iāve always been just a retail private trader when dealing with brokers, but maybe you have some better information as to how their businesses work?
Not all brokers do that. Only Market Makers. ā¦and they do not do it every time. Only if they could not get an opposite matching order for your position.
I was about to launch into a very long explanation about this but this information is now freely available on the Internet (which it never was in years gone by even although it was alluded to using different terminology). Take a look at the link below (itās one of the better and simpler explanations but basically is a very nice summarized version of what would probably take me pages to explain) (and which I know for sure Iāve done more than once over the years).
Bear this in mind while reading though:
Thereās nothing at all wrong with the āB-bookā model as long as the broker is honest and above board and leaves the traders to their own devices. But itās open to abuse by dishonest brokers and thereās usually telltale signs e.g. having difficulty in closing profitable trades but instant closing of losing trades is but one (there are others of course but thatās the most obvious of them all).
Anyway. Have a read. In an ideal world: the entire model is just fine and is just the way it works and always has.
By the way: a regulated broker will clearly state in their trading agreements as to whether or not they may be a counter party to your trades.
Also bear in mind that the article refers only to FOREX. This is not the case i.e. it can apply to any trading instrument offered by a retail broker.
And none of this is fake news I promise you. I know because of my experience working for a broker at one stage (some of the REALLY old timers will remember who). And itās the hybrid model that Iām currently setting up i.e. itās all in the agreement with the chosen services and, in turn, liquidity providers. So thereās full disclosure.
Also worth noting: this does not apply to Commodity Futures Contracts and the like i.e. there you are actually buying contracts on exchange. Which is one of the reasons why trades for Futures Contracts are automatically closed upon an expiry date this to ensure you donāt receive a few tons of, say, Soybeans being delivered to your front door type of thing (or a few thousand barrels of oil type of thing). Iām sure you get the picture.
Nobody is making jest of you. Not so far as I can tell anyway. If anything: all everybody is trying to do is bring you back to reality. And even if that doesnāt happen: hopefully the contents of this thread will be seen by other new bright eyed and starry eyed traders that have heard somewhere that trading promises huge returns and that theyāre going to get some little bit of money together, give up their days jobs, and live off of their profits. Itās just not going to happen. And even WITH a substantial amount of capital itās not a foregone conclusion that youāre going to be profitable each and every single month. Some months you may come up short for example. Or worse still incur an overall loss for a month. It happens. Believe me. My own trading systems and methodologies aside: thereās a pretty good one thatās been floating around these parts for a long while. Not my style. Not my interest. But some people have sat on trades for weeks and months before being able to close out their profitable positions.
Remember: weāre talking about RETAIL trading here. Not on exchange trading and with expensive algos. and that make mere cents on trades but because of the frequency of trades that all adds up and very quickly too.
And many people also assume that itās as simple as sitting down at your computer or whatever on a daily basis, making a few bucks (as you say), and rinse and repeat daily. It just does not work that way. Matter of fact: the quickest way to wipe out a trading account is to try scalping the markets or trade the news. Your average retail trader is simply not equipped for that.
And as Iāve mentioned also on this thread already: itās very easy to take a spreadsheet, input a starting balance, choose some arbitrary daily percentage gain, and then work out a compounded amount at the end of a certain period. Adds up very quickly and easily and looks good on paper. But do you have any idea the effect of just one loss can have on an account? Somewhere around these parts Iāve have a table that I know Iāve posted more than once. Iāll try find it and post it here or post a link to it. It demonstrates in real terms what happens after you take a loss i.e. you now not only have to cover that loss but in addition you have to try make your target. So even IF you were unrealistic and said āalright: Iām shooting for 10% per dayā it only takes one day for you to lose. Now all of a sudden the next day you no longer have to make 10% to stick with your plan but the percentage for the next day is much larger. And so on and so forth.
Anyway. If you believe you can do what it is that youāve set out to do then nobody here is going to begrudge you that. Thatās not what weāre here for (in spite of my initial post here, or rather its overall tone, being offensive to some).
So you keep at it in the way that you deem fit. But if you DO accomplish your goals: then itās not unreasonable for people to ask for details and that you also need to realize.
Whereas the firms Iāve used I believe have never been counter-parties and Iām sure the current one certainly isnāt, the point is its impossible to be categoric about brokers or the client-broker relationship. Nobody but me and the broker can know if he is a counter-party to my trades.
Yet we know a lot of jaded people go about telling all and everyone that brokers are crooks because they take the other side and make you lose. I guess its some consolation.
I like your honesty. As i write this, I just lost two trades I placed yesterday and have caused a dent on my equity curve. I now have to worry about covering those losses and reach my weekly target. Automatically my target would be stretched further if I am to chase my weekly target. However, just because I understand the risk of chasing losses, I am accepting that this weekās target is to panel beat the dent on my equity curve so I could start the week afresh. It is no guaranteed that it will be fixed, it could be further dented and I am ready for that.
Somehow I feel sorry for those who believe they can make 10% per day through trading. I mean, does that person know what kind of risk they are exposing their account to? I struggle to reach my target of a lousy 1% per week. (of course sometimes I make more when the market decides to give me ) Well, maybe the reason being that I do not use any leverage on my account, as part of my risk management plan.
Being a trader means being a risk manager. If one can double their account in just a few days, then, they are a gambler. Its only a matter of time they blow that dice out (I mean their account).
