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

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SHORT ANSWER

Allegedly, 90% of all traders fail
This cliché is posted on the boards almost daily. It may or may not be true. Evidence to support this figure is mostly anecdotal, however, it’s certain that many who try their hand at trading quit with less money in their pockets than when they started. So, the balance of probabilities suggests that you would be wise to ‘expect’ to lose money rather than to make any. But hey, that’s a negative attitude and, besides, you’re not one of the 90% are you? No sir, let’s assume that you’re destined to join the elite 10% of profitable traders!

Now the good news
The positive spin on the ‘90% of all traders fail’ statistic is twofold:
1. Many of those that fail are ‘get rich quick’ punters who play at trading in the vein hope that they can turn £100 into a million in next to no time. If this describes you – here’s some great advice for you. . . If it’s money you can afford to lose and you want to have a laugh gambling, go to the races or take a trip to Las Vegas. It’ll be a whole lot more fun.
2. The good news is that the failure rate needs to be high in order to provide the mega profits for the 10% who succeed. In this respect, trading is a bit like the lottery. The jackpot is divided between those who have the winning numbers. The more winners there are, the smaller the cash prize that each winner receives. So, if you’re willing to put in the huge amounts of time and effort required to succeed – the upside is big. Huge. The sky’s the limit!

But . . . (there’s always a ‘but’!)
But here’s the rub. The secret to trading success is not to focus on reward, but on risk. You must minimise risk and keep your losses small. Coupled with this is the need to focus on trading really well, rather than the money you’ll make if you do. In this respect, good traders are like the best premiership footballers. First and foremost, footy stars have to focus on their training, fitness and how to excel on the field of play. The fame, money and beautiful WAGs come second.

The holy grail to success in trading is understanding and applying sound risk and money management principles. Failure to do so could be disastrous. No joke. In extreme cases, this could result in bankruptcy and loss of your house or other assets. If you've not read it already, before continuing with this FAQ; check out this sticky: Essentials Of 'Risk & Money Management'
https://www.youtube.com/watch?v=g-QtcGk0K4k
 

gerryg

Established member
900 6
100-200% yearly from retail trading is realistic target. Appropriate leverage to achieve such targets is 1:100, lot size 0.5-1 lots. Remember that you don't have to listen other traders everybody's experience there is unique.
 

FXX

Experienced member
1,136 186
100-200% yearly from retail trading is realistic target. Appropriate leverage to achieve such targets is 1:100, lot size 0.5-1 lots. Remember that you don't have to listen other traders everybody's experience there is unique.
Would love to see a retail trader show me an account with these returns over several years. You fancy stepping up to the plate and showing us since you believe it's realistic.

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NVP

Legendary member
36,168 1,761
Would love to see a retail trader show me an account with these returns over several years. You fancy stepping up to the plate and showing us since you believe it's realistic.

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why would you believe anything anyone published on T2win ?...........

anyone can forge documents realistically to prove false profits made ...its so easy to do .....so easy

thats why these conversations never go anywhere on forums......regardless of the good intentions of the people involved .....:whistling

N
 

NVP

Legendary member
36,168 1,761
100-200% yearly from retail trading is realistic target. Appropriate leverage to achieve such targets is 1:100, lot size 0.5-1 lots. Remember that you don't have to listen other traders everybody's experience there is unique.
how many trades realistically needed to hit this ?
 

FXX

Experienced member
1,136 186
why would you believe anything anyone published on T2win ?...........

anyone can forge documents realistically to prove false profits made ...its so easy to do .....so easy

thats why these conversations never go anywhere on forums......regardless of the good intentions of the people involved .....:whistling

N
I never said anything about believing t2w published content. It was more of a rhetorical question to highlight that it is complete nonsense.

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Brumby

Established member
593 135
It was more of a rhetorical question to highlight that it is complete nonsense.

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I agree that it is generally suicidal to use high leverage to generate high returns. Professional traders as a rule use no or low leverage and target 10 - 15 % return annually to attract money.

However on the question of whether it is doable I think it is very rare. Andrea Unger demonstrated in the World Trading Championship that it can be done consistently. Not sure whether survivorship bias is involved.

 

Kaeso

Established member
836 91
100-200% yearly from retail trading is realistic target. Appropriate leverage to achieve such targets is 1:100, lot size 0.5-1 lots. Remember that you don't have to listen other traders everybody's experience there is unique.
Yes once you learn the art of leverage and lot size the returns are turned on as easily as turning on a tap. They flow from the market like water.
 

FXX

Experienced member
1,136 186
I agree that it is generally suicidal to use high leverage to generate high returns. Professional traders as a rule use no or low leverage and target 10 - 15 % return annually to attract money.

However on the question of whether it is doable I think it is very rare. Andrea Unger demonstrated in the World Trading Championship that it can be done consistently. Not sure whether survivorship bias is involved.

I have seen stats like this but it's always short lived and often aligned to great market moves. Look the years he won the cup for example.

2008 and 2009 were tumultuous times in the market with huge dollar gains in 2008 and then a reversal of those gains in 2009 followed by another swing back in 2010. All 3 of these years were one way bets in the dollar. In 2012 when things were range bound and he managed 84 percent which is still an impressive return but off the 100+ threshold.

Thinking of it now, all the amazing returns I have read about have been around major market crisis. The thing is they are not that common and you will be pushed to find someone achieve those gains in steady market conditions without being leveraged to their teeth. I accept I might be wrong here but that is because I am open minded and have yet to see evidence. If someone made 100+ percent consistently year in year out I am sure that person would be the richest man on the planet and we would all know about it.

How's your year going so far? I have been trading a little less due to work but making good progress.



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Likes: Quantt
Interesting i must say. Although i do not know much about Futures, he must be an A+ trader to make such fantastic results year in year out. I would have loved to see and interact with one that can achieve same results in Forex trading though.
Thank you
 
It does look very impressive! Significant results, but most importantly – stable! Turns out, crisis actually helped you reach success on forex? I advise you not to stop trading:)
 

gerryg

Established member
900 6
It does look very impressive! Significant results, but most importantly – stable! Turns out, crisis actually helped you reach success on forex? I advise you not to stop trading:)
Really unique results, wish it would provide PAMM trading with my broker :)
 

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