Hi all
I hope that you are all well.
What do people think is the % return on forex, on an annual bases?
I have heard some people say 20% and others have said 100%
Any help would be great so that i can set realistic targets for my trading plann
Michael
It really matters to whom you are asking the question because risk exposure applied to a small account might be quite different to the one used with a larger account.
I average between 0.1% and 0.25% per day.
Everything depends on the risk, if you risk 1% yes u can make 100% a year, if u risk 0.1% 20% is great in a year.
Seconding what has already been said.
If you’re just starting out, worry about just getting profitable for the time being. That’ll provide plenty challenge enough. My goal points were 1. get profitable. 2. make more than a savings account would return on my balance. and now 3. I just take what the market offers. I strive to take at least one optimal set up per week and just take what the market offers me. Sometimes there’s more, sometimes there is a dry week. Either way, more than what I would get from Savings.
Questions like this are completely irrelevant. It does not matter how much others make, what matters is how much you can make.
But at least we can make an effort answering his question can’t we, rather than passing it off as completely irrelevant? A realistic return depends on how much you risk as has been said. The higher the return you want, the higher the risk of blowing the account.
If I can get a good return compared to other investments I am happy to continue forex trading
In terms of investments, although FX trading not really being an investment - I personally would not trade FX for anything less than a potential 100% per year. FX trading is as high risk as you’re going to get (along with other forms of derivative trading), government bonds being one of the lowest risk. So by saying “as long as my FX returns are higher than that of Bonds, Bank interest or debt issued bonds” does not do justice in my view. Even though this view is talking of relative returns i’m sure you can see my point. What would be considered smart is not using all your funds in FX alone, and thus creating a portfolio of risk and return. Why expect to get 10% per year in FX when you could earn more in government bonds…
Because governments bonds will finally leave you alone with tears and anger.
What will you do when the value of this paper will be close to zero ? asking for a 100% interest rate ?
FX (spot + options) is a different animal because it is very liquid.
For example, think about trading with multiple accounts, Each one funded with a different currency.
Liquidity has nothing to do with it. It’s simple risk to reward of the investment you are trading. And as for your creative prediction of the future value of government bonds it makes sense to answer this question based on what is happening now - and not what one ‘assumes’ will happen in the future, regardless of if it does happen to come true.
Edit: The point i was trying to make is why settle for a FX return equal to or marginally better than that of what is considered more “secure” investments. There is no rational behind this.
Totally agreed!!
1st goal for a newb is to find a profitable trading system and a good money management.
The ROI is the result of of our discipline to do these things and taking whatever the market offers.
I believe even a ‘realistic target profit’ can put pressure on decision making in terms of trading.
My point is that there are no “secure” investments.
So cash is king.
I imagine this is a bit of an impossible question. If you have a 1 million account, you could live off a 5% return. If you have a 1000$ account, you could aim to double or triple it, from what I have read.
[QUOTE=“SmallersCY;499616”]I imagine this is a bit of an impossible question. If you have a 1 million account, you could live off a 5% return. If you have a 1000$ account, you could aim to double or triple it, from what I have read.[/QUOTE]
Jezz is right. Regardless of account size you’ll want to be earning more than 5%pa on fx! I would say, generally the higher your account size the better as volatility can burn your account if you only have small sums in there. All depends on leverage as well. If you have a small account chances are you’ll be wanting to ‘make’ money quickly and pick the highest leverage. Prob won’t last long.
True, we can throw around numbers which will mean nothing to the OP. How much is the return in forex? Unlimited with low risk. Go and do it now. Get my point? Some will make 100% per year and exposes their account to little risk. That mean nothing, because you may be able to get 12% a year with little risk and let’s be realistic most will end up with big losses. That’s why I dismissed the question and not relevant.
I disagree with the cash is king rule.
It all depends on the way do your trading. All returns cannot be equal, it can only be close sometimes. All we need is hard work and commitment, then good returns will come at the end of the day.