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Originally Posted by Caprica
Thanks RavenMM. So what do you think is a realistic expected return per year for a retail currency trader?
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Well if the professionals are doing 13.47 average and the long term growth rate of the stock market is say 8- 10%, I'd say that anything over this is great if you can do it consistently.
As with most people on this board who would like to "trade" for a living with a starting balance of say $5k, no it's not realistic, even though you can leverage up with some brokers 400 times. That's not to say that some people don't occasionally make short term fantastic returns ( judging by posts on this board, that's 80% of traders here... LOL
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Why not try thinking of it another way. Start trading part time with a minimum stake of $10k. See if you can compound at 30-50 % annually. If you can do this and continue adding/building your stake then after 5 years, you could start trading for a living and be comfortable because you would have proved yourself over a variety of conditions. If you can compound at 30-50 over 5 years, do the maths again to see where you would be a further 10 years down the line. Now we're talking serious money!!
After 20 years, you could retire extremely wealthy and bear in mind that for 15 of them, you would have been you're own boss working when you want from where you want. Not sexy I know, but it's a hell of a lot more realistic than make a million in 1-2 years.
Who knows, after 5 years experience you may end up being a fantastically talented trader like say Marty Schwartz and be good enough to start making even better returns.
