Hey guys!
so when ever i read about profit in the forex market people are always saying not to expect huge profits and to expect a 2-5% growth. Why is that? it doesn’t make much sense to me.
So on my 2,000.00 USD acct starting. I’ve found a system that was back tested by myself and put to the test live and so far is going as advertised. thats about a 70% success rate. so if all goes well here are the projected numbers at the end of year 1 with a starting account size of 2,000.00 USD.
this is based on trading 1 mini lot per trade.
*70% success rate
*each winning trade averages out to $60.00
*each losing trade averages out to $50.00
*$60.00 x 70= $4,200.00
*$50.00 x 30= $1,500.00
*every 100 trades = $2,700.00 (4200.00-1500.00)
*4 trades a day average
*that’s 100 trades a month
so that’s $2700.00 a month
that comes out to $32,400.00 on the year starting with a 2000.00 USD account not increasing any trade from 1 mini lot.
so why is it that every thing i read always says to keep a realistic view on goals like a 2-5% increase on your account?
32,400.00 is a 1520 percent growth on the account.
so im curios why i always hear this? maybe im missing something?
thanks
Let’s just say that once you go live and start trading real money you will see that what you put down on paper and what you will actually achieve are often two different things. I think 2-5% monthly growth is a very respectable performance and it all comes down to sustainability. It may go well for a while, so I recommend that you gather much more live data.
thanks for the replies! I have been trading this system live and my results have been good… im just curios as to why people say making 100 dollars a year or even a month is the realistic outcome when i make more then that a day. just curious
its not just the system im talking about i was successful before it as well, about 70-100 a day, so not as successful as with this new system. My current system was not created by me, its been around for years now. Thats not that point of this thread as much as the fact that its reasonable to make a good income and grow an account thats on the smaller side like mine. with 2000 i can comfortably trade mini lots and profit 60 dollars a trade or lose 50 a trade and still be comfortable with where my account is. I think that all these articles i read from websites and blogs that tell people they should shoot for such low goals, i dont agree with. i think you can grow a 2,000 account into 25k in a year pretty reasonably and go from there. now thats my opion but i dont see why not
I doubt your turn 2k into 25k in a year, i think you could turn 2k into 8k tho, a lot of people do have really low profit targets some people only make 10% a year, now if you have a lot of money invested then thats probably good but for most retail traders i would guess that 10% a year is hardly worth all the time and effort you have to devote to forex. Forget what people say and just do your own thing.
What those expected return numbers don’t factor in is the distribution of those negative returns. A couple of really big ones can do incredible damage, even if they only average out to $50 each.
I’ve got real data that shows an average monthly return for retail forex traders of about -6% per month. A lot of that comes from those who think big monthly returns are sustainable.
I like your attitude, but i am concerned with your risk reward ratio. Is it sound and sustainable money management in the long term, e.g. over a year? How will you go with 5 straight losses? Would you be ok with this?
You sure can make a little money with a 2 grand account, but just be careful around your risk reward ratio and consistent long term profit.
Hawk, dont listen to other people and what they are saying about numbers, its stupid because its generalization and it will mentally “destroy” you, make you believe you cant do it, that is not possible, thats bull, If they cant make it because they are poor traders that doesnt mean rest of us cant. If you have good strategy and its working then great, go with it! Today for example I made 11.8% on my real account with 6 trades, 0.8% DD, I make few % every day basically but today was a verry good day so…when i read about 20% a year i laugh and cant believe it, also when I read that some pro traders have few negative months in the row, like WTH . I cant believe it.
i started to think the same thing, i was 110% up after 6 weeks, i started to think how the hell can so many people be losers in forex, its not that hard, but then i bought gbp/usd and held it for too long and wiped out half my profits, you will make a mistake at some point, you cant have perfect performance forever.
Keep it simple, aim for low annual numbers because you can only take what the market gives you. If you end up making 100% a year, awesome but that is not the norm. You can check myfxbook, ayondo, zulutrade and any other site that tracks trader statistics
Cant happen to me because my max SL is 10pips on my price action/patterns scalping strategy(I am not scalping 2-5 pips scalping btw), I spent years and hours in developing working strategy for my taste, small SL, low DD, high accuracy, doesnt take much free time, doesnt have trades open overnight etc and I really enjoy trading.
I am not saying that my performance is perfect but if there are mistakes they dont wipe my account or even my last day profits even. Everybody needs to find what is working for them, you must feel good and confident with your strategy.