FAQ Realistically, How much Money can I Expect to Make?

Jun 28, 2008
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#16
Interesting, I have been involved in various business activities for the pat 40 years, some successful some not so. When it has been good it was the information I had in my head at the time that showed me the way to success. Charts, graphs, systems are all very well but by and large they show you historical movements not what started the movements in the first place. It's a bit like fashion. It's no good waiting 'till Primark have knocked off E St Laurent to make you copy and get it onto the market, you must have seen the original on the catwalk the same day as Primark did.

I have not been at this long and so far I doing OK. I invested in RANSQUARK Gold which is a squark service directly from the dealing rooms to your computer by voice in real time. You get a second by second account of breaking news and exactly whts going on in the world, you will see the markets reacting to this immediately - ignoring any chart input you may have set up. Yes, by by all means use the technical info to learn how the markets react to the input info, but I feel if you just trade dots and lines you will not be a success.

Markets are about sentiment, supply and demand, thats all. If you are not aware of what is driving those sentiments then you are stabbing in the dark, some times you will find the bathroom door, sometimes and quite often you will stubb your toe on the bed. I would like to see some comment from seasoned, profitable traders and to know their view.

JB
 
Jul 10, 2003
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#17
Hi Jonathon, welcome to t2w.

Interesting first post and congratulations for finding your way around the site so soon after joining. Your comments may well be moved to a more appropriate thread as this one was nominally set up to discuss empirical returns traders can expect to make. (A subject I personally imagine to be so wide ranging as to be largely pointless and therefore, not particularly helpful to those starting out in trading). Which brings me to your comments.

Most seem to manage to screw up even the simplest analysis of the most basic chart patterns. Adding an RT squawk service (you mention Ransquark, I presume you mean Ransquawk?) will only add to their indecision and over-analysis (and subsequent paralysis or carelessness) in my view.

Sure, once you’ve got the basics nailed and you’re pulling consistent profits and you’ve got a feel for your market, maybe then, but even then I suggest stepping back and thinking it through.

Very few retail traders have the capacity to effectively utilise squawk feeds even if they fully understand the aspects of supply/demand, market mechanics, sentiment and all the other nuts & bolts that make what happens in the markets, happen. They have neither the execution speed, size nor commissions/dealings advantages of pro traders, nor do they have flow or order book insight. Without these, a squawk is likely to be more of a liability than an asset.

You say you haven’t been at it long, how long have you been trading and how long have you been consistently profitable? Were your previous (current) business interests related in any way to the markets you currently trade? Deep fundamental knowledge of any underlying market sector from any angle not directly related to trading per se, may well provide you with those vital insights and experience you may not be aware you are utilising to profitable effect and rather imagine are being provided by your RT service.
 

Mr.J-Arthur

Active member
Jun 22, 2008
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#18
The sky is the limit, so one can only dream of the profits that can be made.

Realistically, your trading needs to be refined before you can make a consistent income. You don't need to be super brainy, just be able to follow a good plan that includes many aspects of trading.

I think it's good to have a rough idea of what can be made, but not to focus on it too hard for too long. My biggest success in starting this journey has been all of the knowledge I've soaked up as well as experience. Make goals and complete each baby step and you'll make the millions you've dreamed of. Dream big and plan big!
 
Jun 18, 2008
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#19
I only read a few of the responses none of which answered your question, so I'll share my experiences: As an experienced daytrader of the e-mini S&P contract a very reasonable goal is 150 per day per contract after commission. I usually average more like 350 but I've been at it 10 years. I lost and/or broke even for the first 4 years so don't be disheartened. Be patient and papertrade until you can make at least 150 per day then make the transition. The transition is never smooth but that's no reason to skip the papertrading. Oh and of course before you go to live trading make sure you have a clear edge. I assume from your question you are a long way from that point so be patient my friend. And ignore those who say breaking even or losing is the only realistic option. Why would you want the advice of someone who cannot make it themselves?
 
Likes: trader_dante
Oct 6, 2008
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#20
According to Mr J. Arthur, the sky is the limit. It all depends on the risk you can take.
And of course you decide what you want to earn :). Small risk = small returns Or small loss!; Large risk = large returns Or Large loss! . With reference to Lesgofishn, make sure you have a clear edge!
 
Jun 28, 2008
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#21
i just recently started full time trading my own account and " how much money are you making?" is just about the first thing anyone asks. personally i think that the question is flawed and shows a lack of understanding about the markets. I cryptically tell people that in trading, money is an irrelevant variable, in that, what ever you made could be ten times more or ten times less depending on if you put ten times more or ten times less on. If you can't make money with say a 3k account, 30k or 300k account wont make money just increase the loss.
Money is the RESULT of good consistent trading, and money management, if you can CONSISTENTLY make £1 profit a day you'll do just fine.
cheers B.
 
Apr 16, 2009
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#23
hi there !!

Realistically, one cannot expect how much money you would earn on a trade...

Its uncertain, it entirely depends upon the market fluctuations, your perception towards the trade.

But Yes...there is a saying that never expect profits but anticipate for cover the loss if any

so that works here....
 

Dubai

Active member
May 2, 2009
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#24
Re: How much money can I realistically expect to make?

I think that's a stab in the dark indeed, but when a trader loses money another trader makes a profit. The only profit brokers make comes from spread and commission costs.
Sorry to drag this up but that is complete nonsense especially in regards to many market makers and bucket shops.

Read your fine print and you'll find that the other person on the end of your trade is your broker. If you win, they lose, you lose they win.

Why do you think IG slip you at every chance possible?

Only ECNs and STPs provide opportunities where your broker isn't on the other end.
 
Jul 20, 2011
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#25
Re: How much money can I realistically expect to make?

Sorry to drag this up but that is complete nonsense especially in regards to many market makers and bucket shops.

Read your fine print and you'll find that the other person on the end of your trade is your broker. If you win, they lose, you lose they win.

Why do you think IG slip you at every chance possible?

Only ECNs and STPs provide opportunities where your broker isn't on the other end.
To add to that, as the original comment also jarred with me from a logic point of view, just because you sell at a higher price than you bought (hopefully), this doesnt imply the buyer is making a loss does it?

This would imply financial markets are a glorified pyramid scheme (/ponzi scam) and there is no wealth creation?

Correct me if I'm wrong, I'm still evolving from monkey trader status.

S
 
#26
I feel as if the title to this thread may have put people off.
As that is the only way I could see why more people have not read and repsonded to this thread which probably contains the most important information any trader could have.

T2W Bot is absolutely correct when speaking about focusing on your risk and don't even begin to dream of profits. One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
 
Jan 9, 2011
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#27
I feel as if the title to this thread may have put people off.
As that is the only way I could see why more people have not read and repsonded to this thread which probably contains the most important information any trader could have.

T2W Bot is absolutely correct when speaking about focusing on your risk and don't even begin to dream of profits. One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
Balls. Go all in on your first trade. Who knows, you might get lucky.
 
May 7, 2008
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#30
One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
might as well put your money in a savings account and agree that speculation is not for you :confused: