Hello, just thought I might share these data with you so you can put your trading results in perspective since I see a lot discussions on how much newbies should expect to make in forex.
As you can see, it is not possible to turn a few bucks into a million. In 2006 the forex winner reached only 18% in 12 months ! And these are not bit big accounts. Which is excellent to know because if you think you are struggling, looking at this, you might just realize that you are actually doing quite well percentage wise, you are just simply undercapitalized. I hope this helps some ready-to-give-up traders the boost to keep going.
Starting with 10K, making 20% a month, adding compounding it takes exactly 5 years and 4 months to reach 1.17bn. Are you sure you know these billionaires?
I suppose you mean people able to make 20% for a few months in a row, which is doable but that is not called consistent.
Lets put some more perspective on this subject as I is often brought up and sparks a lot of emotions.
The follow example is a simple 200 day trading your with out any consideration of compounding and presumes a trader can have a consistent average broken down to this daily and the account is swept daily.
10K @0.01 is $100.00 per day x 200 days is $20K annualized
10K @0.025 is $250.00 per day x 200 days is $50K annualized
10K @0.050 is $500.00 per day x 200 days is $100K annualized.
10K @0.10 is $1,000 per day x 200 days is $200,000 annualized
10K @0.20 is $2,000 per day x 200 $400,000 annualized
I used a small account of $10K and what I think are very achievable averaged daily returns. So why don’t traders own the world after a few years of consistently profitable trading? while there are a few reasons, most traders need to spend some of the earning on taxes and living expenses and do not reinvest the funded to receive the benefit of compound interest.
Put another way in Pips;
EURUSD 1:1 currency ratio
equity gain
+10 pips per day is $10.00 is 0.001, unreasonable to expect of a trader?
+100 pips per day is $100.00 is 0.01 the bottom of the above chart.
I think you can see where I am going with this,
Where do you fit on the chart and for what time frame, a week, month, year multiple years?
I would really like to know which strategy Artur is pursuing in order to make 200% of return. But aside from that extraordinary score, 20% seems quite realistic and achievable