I agree that about 10% - 20% realistic profit can be got.
if you start with ÂŁ100 and increase position size as your balance goes up, a profit of 10% per month will make you a millionaire in about 8-9 years, has anyone ever done this? I would say no
1%-3% seems realistic to me.
It also depends on how much you are willing to lose.
Yup, if you trade with full account there is no reason not to have a minimum of 10%
Making 10% on little amount like $100 to even $2000 is relatively easy than to achieve a 10% profit monthly on a million or more amount of account. So for this reason very less had achieved such success.
It seems easier on a small account but if you are regularly making over 10% in a month chances are you are risking too big a percentage of your capital and a run of bad luck will eventually wipe the account. I know this because Iâve done it 
The problem is the forex game is actually divided into two seperate games. That is BEFORE you hit 5 standard lots per trade and after.
Before you hit 5 standard lots per trade all you really need to decent money management and a working edge. With just these two things you can make 0-30% a month. Some months you wonât make anything, some months youlâl make quite a bit.
After 5 standard lots per trade the enemy isnât strategy or money management (although you do need those things)⌠The big enemy is liquidity. Youâre large enough to move the market from this point onwards (ever so slightly at 5 lots). You need to start looking at different strategies. Itâs at this point that 20-30% a month becomes truly unreasonable.
This is why thereâs never any retail forex âmillionairesâ. After a certain amount of capital forex just isnât easy or worth it anymore without being truly dedicated. (dedicated enough to buy intra-bank order lists, and set up your own firm investing hundreds of thousands).
Expecting real gains from the forex market is the most toughest task for all the traders and thus we should always determine our trading caliber, prepare a plan and work towards making it real. Only then we can understand our potential. Certainly the forex market movement has come down compared to previous years but there is still scope for earning.
For me itâs about beating my bank deposit. Anything above that is a win. Of course there is the added dimension of wasting time on trading which can be used otherwise, but I donât see it only as an activity that consumes my time - itâs something that makes me more aware of the world and how things work.
Sorry, but this really is pure fiction: youâre out by a factor of at least several hundred! :o
If 15-20 retail traders all wanted to trade about 200 lots each at the same time, in the same direction, they might possibly, just about, move some of the most sensitive forex markets a tiny fraction.
Anything less than that, not so much. Not on this planet, anyway. :rolleyes:
There will be very few people who will be able to leverage up a position of the value of
[B]$10 billion[/B]âŚ
Itâs possible to make big return in a month but not every month consistently.
A 20% monthly return is already out of this world if someone trade with big, big money. It seems easier for those with smaller account size to make bigger return per month compared to those with bigger account. But of course, there are exceptions to this.
Hi sunzbck realistic monthly returns is anywhere between 5 and 10 % and i agree with that too. Couple those returns with a growing account size , at some point the account will be at a point that you can safely make a living from it, if you wish. Remember , after any crash whether is forex or equities there will always be a come back. The traders that are weak and donât have the stomach to deal with it , they are the ones that loose money because they donât learn from it. A good trader will learn from it and become a better trader , as a result down they road they will become successful. In anything you do in life there is the element of risk, think about it, every day we get up from bed we are taking a risk. Happy trading.
The initial question was âWhat is a Realistic monthly return for a Forex Traderâ. The problem with that question, is that there isnât one correct answer. Donât listen to the people that say 5 - 10 percent. Why? Because theyâre not you. You could very easily make 10 pips a day. Say you only trade Mon-Fri. Thatâs 200 pips a month! How much is 200 pips a month? It depends on how much you personally have to trade with, the amount of leverage youâre using, and how much youâre willing to risk. For simple math, say youâre trading account balance is $1,000. Say you are using 50:1 Leverage. You now have the spending power of $50,000.
If used the entire $50,000 Each Pip would earn $5 $5.00 Per Pip X 200 Pips = $1,000 100% Return
If you used $25,000 Each Pip would earn $2.50 $2.50 Per Pip X 200 Pips = $500 50% Return
If you used $10,000 Each Pip would earn $1 $1.00 Per Pip X 200 Pips = $200 20% Return
If you used $5,000 Each Pip would earn $0.5 $0.50 Per Pip X 200 Pips = $100 10% Return
If you used $1,000 Each Pip would earn $0.1 $0.10 Per Pip X 200 Pips = $20 02% Return
âThe Math Does Not Lieâ
It is Definitely possible for you to become substantially wealthy trading Forex.
It is Definitely possible for to to make a 100% return in a month.
Will you? Thatâs entirely up to you. Forex and the Stock Market are just other forms of gambling⌠But Forex and Stocks give you a better advantage and win percentage if you actually know what youâre doing and not just blindly trading.
I understand the reasoning behind setting for yourself a quota for each month⌠But thatâll just get you in trouble.
If you set for yourself a 20% quota each month. And the month is almost over but you only got a 5% return that month. That 20% quota is just gonna force you into taking trades that you shouldnât be making.
Develop a trading strategy. Develop rules for youâre strategy. Rules that suits you and your personality. Determine how big off a loss youâre willing to take on each trade. The more successful your trading strategy is, the bigger your returns will be for the month.
Itâs fine to learn how other people trade and the signs that they look for. But donât let these other traders determine how much youâre allowed to make each month.
Reading posts from folks who havenât made a single dollar and then debate about the millions being possible.
*** sigh ***
Have erased two different replies to this thread, it just gets so discouraging about having to speak the obvious. It is such a scary thought that people will trade money with absolutely no clue as to how that market works and what they are doing.
If you think anyone in this forum can move the market then you are quite delusional.
Some round numbers; the forex market per day is around 5.2 Trillion, of that 1 Trillion is corporate and banking for shipping goods world wide, 4 Trillion is institutional traders and 200 Billion is the retail trade. Go ahead, move the market.
Forget about your outcome over the next 20 years, you havenât got a clue if you can even make a profit at all and statistically speaking you canât. So go learn, think, test, and trade to make 1 dollar. Review, adjust, repeat.