What Percent Return Can A Successful Forex Trader Expect to Average Per Year?

[achilles28]

Greetings everyone

I am new to forex trading would like to get an idea what compounded percent return successful forex traders average per year using sound money management?

[Midge]

Hello achilles28


You will find that many successful forex traders do not "expect" anything hence the need for sound money management.


Good trading


MidGe

[achilles28]

Midge

Am I to assume then successful forex traders don't earn a substantial ROI each year since they don't "expect" any return?


I underst the point you are making in reference to the importance of money management. But that was not the intended meaning of the question.

I am simply looking for a general idea or *ballpark* ROI successful forex traders realize on a yearly basis.


Good trading toyou.

[Midge]

Hi again achilles28

Am I to assume then successful forex traders don't earn a substantial ROI each year since they don't "expect" any return?

Don't assume anything! I was very careful in using "many" rather than "all" as I specifically wanted to avoid a flame war I am sure many people on this forum will have a different opiniion will probably post you some replies also. Long live democracy the freedom of expressing all opinions!

In my opinion again I accept that some will differ I respect that there is no causal relationship between expectation realisation/actualisation.

Another way of answering your question would be to look at the number of traders on this board others that have been trading for a number of years. Just look at their "date joined". Of course some traders will have much more experience than indicated by their joined date conversely a recent "date joined" does not neccersarily indicate only recent trading experience. But the interesting things is that there are some that seem to have traded for a number of years are still trading. I suspect that they may find their trading returns satisfactory given time effort expended risk taken or they have money to burn enjoy doing it.

I am simply looking for a general idea or *ballpark* ROI successful forex traders realize on a yearly basis.

In terms of average ROI my question would be: when does average become statistically significant? Surely a few years has little meaning statistically. On the other h you others may accept a few months data as valid extrapolate there.

The individual style of trading or the risk taken will also affect the outcome the answer only becomes meaningful within a specific context.

It seems to me that your question is too broad. The concept of a benchmark for trading does not exists as the styles especially vis-a-vis risk tolerance can be many they will have many different outcomes.

I underst the point you are making in reference to the importance of money management. But that was not the intended meaning of the question.

My comment regarding money management was only a trow away comment I realise clearly now not an answer to your question. Sorry about that. I also realise only would like to add to avoid flames again that money management has not only defensive/protective but also profit imisation aspects.

All this being said I sincerely wish you a very happy enjoyable trading experience.

MidGe

[achilles28]

Originally Posted by Midge

Hi again achilles28

Don't assume anything! I was very careful in using "many" rather than "all" as I specifically wanted to avoid a flame war

The question I asked was a rhetorical one not a statement. Perhaps I should have omitted 'expect' in the title as this seems to be confusing?

Originally Posted by Midge

In terms of average ROI my question would be: when does average become statistically significant? Surely a few years has little meaning statistically. On the other h you others may accept a few months data as valid extrapolate there.

Midge although I appreciate your analytical approach towards fielding the question the original query was asked in a informal colloquial context; not striving for statistical significance or absolutes. The use of informal broad language like 'get an idea' 'ballpark' 'sound money management' implies the invitation of a dialogue shaped more by casual general exchanges than pin point accuracy.

The replies of course can be later be elaborated or expounded upon to derive validity or representativeness of the authors comments if needed.

It doesn’t have to be a science or framed perfectly to absolve follow up questions to clarify. We have all day week or month. There is no rush.

See what I mean?

Originally Posted by Midge

It seems to me that your question is too broad. The concept of a benchmark for trading does not exists as the styles especially vis-a-vis risk tolerance can be many they will have many different outcomes.

Then by all means if you wish to participate it would be great if you could share your annual ROI risk tolerance employed?

[tim_nn]

Originally Posted by achilles28

I am new to forex trading would like to get an idea what compounded percent return successful forex traders average per year using sound money management?

Well I don't _think_ that you'll be able to get that by asking the question here not only for the reasons Midge suggests.

My own takings are sadly not fully compounded because although I've been making a living trading for nearly 5 years now I'm in the position of the overwhelming majority of home-based self-employed "small traders" of living off my fund to some extent at the same time as trying to increase it. Undercapitalised in other words. if that's still true for me I imagine that it will be true to a greater or lesser extent for very many others.

Most people (including most traders) when planning their activities in life (including their activites in trading) seriously overestimate what they can achieve quickly seriously underestimate what they can achieve eventually.

I make something between 4% 8% per month every month.

[tim_nn]

Originally Posted by Midge

"Our human race is affected with a chronic underestimation of the possibility of the future straying the course initially envisioned." - Nassim Nicholas Taleb

It's a wonderful quotation Midge. I don't recall seeing it before. Is it "Fooled by Romness" or somewhere else?

[James]

Originally Posted by tim_nn

I make something between 4% 8% per month every month.

Sounds about right for a very good trader Tim. Leveraged between 1:1 2:1 or so.