What should I aim for? I plan to start with only $300-500.
My Friend,
Did you finish the babypips academy?
Have you traded with a free account?
Best
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If this is the start of your adventure into FX speculation then I’d certainly have the mindset that this live account [and congrats for going live to start with, you’ll learn a lot from an emotional point of view] should be used to simply break-even at best. It might sound simple or easy, but even that can be a challenge in it’s own right, even the professionals have losing months from time to time.
I’d say that the ball part figure for typical monthly gains based on the verified accounts that I have seen over the past years is between the 5% to 10%. Some months may be less, even at a loss, whilst other months may be considerably more than the top end of 10%. Essentially, it will average out, but the swings from account gains month in and month out should also be rather consistent, this is a great measure to use when looking at longer term account stability. I believe myfxbook uses a standard deviation upon expectancy to show this exact point.
But, to start with every new traders / speculators aim should be to get to the point where they are averaging out at break-even whilst sticking to a trade plan the entire time. Chasing a loss and making back your losses by taking a non-tradeplan approach is the risk (we’ve all been there - it’s even more dangerous when you happen to pull it off as it fuels you to do it again and again. At some point you’ll over position size to cover the loss and blow your account).
Good luck
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I think that 5-10% is a good figure that i would be happy with. If you compound your profits each month it will total up to a good amount by the end of the year.
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That is relatively normal yes. Compounding is the key.
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Don’t worry about making 10% a month until you’re making 20% a month.
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Yes, you are doing a good job. Keep it up.
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Aim for 2%-20%, I have strategy operating problems aiming for a turnover of greater than 20% on any given month.
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All returns should be evaluated in connection with risks. It means that it is not enough to know only the return - the information about the risks is important also. For example, if you earn 10% with 2% risk - this is great, but what happens if to earn the same 10% you need to risk with 20% of your initial capital?
Fund manager needs to earn 20% annualy to override the average market return, and achieving of such returns is perfect result of him. At the same time, the risks are moslty lower.
So, you should always make adjustment on risk: sometimes it is better to use a strategy with lower retuns, but with lower risks too. The return on investment is important only in connection with related risks.
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Agree with this, I would not chase XX% if the set ups are not there. Concentrate on making good trades rather than %%.
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First of all are you ready to start trading live have you demo traded?
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i agree, dont put pressure on yourself to reach self set ‘‘targets’’ as such,especially in the beginning. n
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thanks for this
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I’m not yet finished studying at the babypips academy but I’m demo trading while studying.
Your income will vary from month to month. You will even have losing months and that is fine. Losing is a part of winning.
Are you profitable at the end of the year?
Trading is for the long term.
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You won’t get far with that little money…
Returns reflect.initial investment…
You are setting yourself up to.fail… but it is important to figure this kind of thing out individually, without listening too much to what anyone tells you: better to make your own mistakes than someone else’s…
Good liuck but I am out.
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10% is very very good profit actually, especially if your account balance is high. Regards.
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10% is meaningless per se: 10% of what?
Also: The best laid plans of mice and men...and the myth of compounding | FXCC Blog
If you only lose about 20% in your first year you’re doing well.
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Thank you. I wonder if this is even something I would be capable of achieving.