Hello all,
Before I start, i know this isnt a get rich quick scheme and I’m not asking this question with the hope one of you will give me expectations of unrealistic returns
But I see alot of posts saying that a 1% isnt a realistic daily return target? But how is that not the case?
Let’s say for example you spot a trading opportunity that matches exactly what your trading plan says, you take 1% risk on the trade and place your stop loss 30 pips under the entry level and your take profit at 60 pips. If price is to hit your TP then that’s a 2% gain on just one trade.
I am abit concerned that I’ve got my risk management strategy all wrong so any advice would be really appreciated.
Thanks,
Harry
I think you’re assuming your trading strategy will be 100% correct? 
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Absolutely not,
My example was just an example but an experienced and confident trader could probably get 3 trades wrong and 2 trades right and still be a few % in profit.
No strategy is 100% correct right but a % day dont seem too extreme.
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The 1% per day refers to an average. Let’s say that your Risk to Reward is 1:2 on average. If you win a trade you will make 2% on a 1% risk trade. However, if you subsequently lose 3 trades in a row you will be down -1% for the day. Therefore, the sentiment is that maintaining an average of 1% per day in the long run becomes challenging.
Don’t worry about how much you can make. Concentrate on improving your win rate and your R:R. Consider this - if you can average 0.5% per day then you can achieve a monthly compounded return greater than 100% per year. Will that work for you? 
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Thanks for your explanation. I do understand what you’re saying.
So what would be the best time period to asses return. Weekly, annually or even daily.
Eg: if your down 5% in May but up 6% in june is that a good return because you’ve had a 6% month or would it be considered back because you’re technically only up by 1%
Depends on the sort of trading that you do and the frequency of your trades. I don’t assess my trades until I have 2 losing trades in a row, at which point I adjust my risk down and monitor my account balance with the next few trades. I don’t concern myself with the percent gains because I tend to compete with my past performance in an attempt to beat it and that causes havoc for me. So I just take the trades as I see them and as long as my account keeps growing I don’t worry about the percentage gains.
Having said that, when I first started, I would monitor my performance on a daily and weekly basis in grave detail in order to learn and to improve my win rate and R:R. But this assessment was for the trades that I had placed and not for the percent gains on my account. I started trading on a live account with 1/8% risk per trade each on two pairs only since I figured I might blow up an account or two as a newbie.