I am newbie in forex trading (real account) who have been learning many trading systems with demo account. Finally, I am be confidence with my trading system. Honestly, my trading system just gave me about 2%-6% in a month.
Please advise me, Is it ideal return in forex trading? Absolutely, I know many peoples will say ideal or not is relative matter…so may better if I change my question.
" how many percentage that you booked with your trading system in a month?"
Thanks in advance, and hope we all make ‘green pips’ every day.
I would say, 10-15% in a month is perfect. Something like this you could count as a target.
People who screams about crazy 50% and higher make me be extremely sceptic to them. Most likely, they sells something:D:D
It’s extremely relative to both your trading style and risk per trade.
I trade both long term trend and (even though I preach against it lol) scalping during the london/US overlap.
The long term stuff can have Stop losses of 100-300 pips with a 3% risk divided against that. Since it’s long term I just stay in until the trend is over, which could be weeks or months, if I’m lucky. The return can end up being +10% or more if the trend was really strong.
The scalping I do is on 15M EU with a 20 pips SL. On a day with a lot of decent set ups I’ll get as many as four trades. Each one risks 3%. They dont always win 3%. I’ll cut wins short of this if it looks like it’s run out of gas. But, on a good day I have made +12% when all four have been good runners. I made about +7% on EU today between 5 good trade.
BUT, that does not mean scalping is better than trend trading. Trend trading is much easier TA and probabilities are higher in your favor.
If I had a huge account with several 100K I wouldn’t bother scalping I’d just trend trade.
If you are new to trading, IMO you should long term trend trade first and work your way down to scalping. If you are interested in scalping. Scalping takes a lot of attention and trade management. And you have to have a method that gets you regular entries that are consistently good and go postive quick. Scalping is also a lot more stressful compared to trend trading.
P.S. Compounding is your friend. Keep compounding, your % gain per month might remain the same, but if you are consistent the actual amount gained will go up larger and larger with compounding.