Setting realistic expectations for your trading is a big part of staying in the long-term trading. Have you defined your trading goal and how realistic it is? How much percentage in a year you think is achievable and how should you set your goals in terms of period and percentage, please share with us.
-100% over the long-term.
As i’m very new to trading, not blow up my demo account.
I’m trying to work out what is best for me while learning as i go along.
The word “REALISTIC” is very important
Yeah its very necessary to stick to the basic and not to blown away by those fake stories of getting rich in a single day or so. Trade according to your capabilities and you will will surely reap profits.
Realistically, if you’re a new trader your month over month goal should be not to lose money. Try to finish each month in the black. 99% of aspiring traders in my opinion will not meet this goal. So that should be your first goal for your first year. Don’t lose money. If you can do that then you stand a chance of being the 1% that can make money. This sounds harsh, but it’s realistic. My last fiscal year I made over 600%. But that’s not realistic for and aspiring trader. However, it just goes to show once you learn how not to lose money your profit potential can be unlimited. Before you can make money you have to learn how to not lose money, then you should easily be able to get 10 to 15% per month or more with a sound methodology.
How many people do you know who can “get 10 to 15 % per month or more” “easily”?
Hey, why don’t you create something yours and use it for your spamming, instead using my thread?
???
Say wha’ ?
Actually it depends on trading style. If you are a day trader and trading more then 5 years, %10 per month (which means %300 per year) is reachable target but %20 per month (which means %900 per year) is an aggressive and dangerous one. For an intermediate and long term traders, %100 per year is reasonable.
I’m an opportunistic trader, I rarely set any goals for myself. In my experience even the best made plan might go down the drain in this line of work.
Well i think 100% return a year is a realistic trading goal. I know many who want 500-600% a year and few of them make it as well but most of the traders i have seen running after more than 100% a year they expose their account to high risk and don’t reach their goals. It depends on your personal expectations but i would say always set a target which you think you can easily achieve without taking much risk in a month or year. In addition to that if you get anything extra then consider that as an add-on.
Lol. You need a reality check, bud…
I’m a firm believer 99% of aspiring traders will lose in this business. It’s not like there not capable or dumb. I’m sure the majority are quite intelligent. The problem is there all learning from the same sources, same books, same websites and such. That’s why you get so many people on the forums that don’t believe making good returns as possible. As an example. Most people were taught before placing a trade. They need to deal with their trade risk and reward by setting a, 2 to 1, or, hey, why not even better, and go 3 to 1. And that’s all there talk about risk. They have no clue there are at least four other types of risk that need to be calculated before entering a trade. They have no clue that the market their trading does not know profit to loss ratio. So they place their trades where there almost certain to get stopped out before their target is hit. And why wouldn’t this be the case. Their stoploss is only half the distance as their target. When I place a trade, my very first goal is don’t lose money. I take trades only one I have an edge, and I can protect my capital quickly. My profit targets are placed where the market has almost no choice but to hit it based on current market conditions. I risk only one percent on any trade. But that does not mean I’ll wait until my stoploss is hit. As soon as my edge is gone I get out without hesitation. Rule number one… Don’t lose money
So I will repeat my earlier statement if you’re an aspiring trader your first goal should be… Complete each month breakeven or a profit. I don’t care if it’s only one penny. Focus on not losing, your winning trades will take care of themselves.
Best hedge funds do 20-40% return a year. And you talking about 600-1000% returns. You are fairly new to this business. Exness by saying 100% u mean double the amount u put in yes?
First hedge funds risk is ultra low compared to your regular trader…it’s in 0.1 % realm, second they do diversification of their portfolio, lowering their risks and that’s why you get those 20-30% a year return which is good for them because they are doing it with billions of $…
Btw. when you’re diversifying, you are lowering your risk and your volatility, hence you are limiting your downside risk, but also you limit your up side profit…it’s all cool when you have a 100 mil. $ hedge fund acc. and you make 5% a year
Don’t try and confuse that with what we try to do as a small retail traders with 1 000$ and 10 000$ accounts…
I agree w/ most of what you’re saying…
Except for one thing, somewhat.
Too many people focus on the [B]results[/B]…not the [B]process[/B].
The process is more important than breaking even.
The process comes first.
"Focus on not losing, etc etc"
Focus should be on executing your plan, regardless of the outcome, as consistently as possible.
This will lead you down a path which will easily determine if you have an edge or not.
You’re assuming at the aspiring trader has a plan and a process. Most likely they do not there still developing one. I would think we are on the same page. We just look at it differently. Once you have a methodology that is consistently making a profit you’re absolutely correct. From that point on its focus, focus, focus on the process. Stick to the plan.