What is ‘Success’ in the Forex Markets?

Filed under: Learn Forex Trading |

A lot of people enter the forex markets for the first time with unrealistic expectations. They dream of becoming rich beyond their wildest imagination – and when the harsh reality hits home – they give up, considering it too much work and not worth the effort. So what really constitutes ‘success’ in the forex markets?

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‘Success’ is very much a subjective term. Many beginners to the forex markets go in hoping to double or triple their money in their first year – or even their first month! However, if you are looking to double your money every month, then I would suggest that your expectations are out of control, and it is very likely that your risk levels are too (and thus you will likely blow up your bank). If these are your expectations, then it might surprise you to know that some of the best traders in history only got annual returns of between 30-100% – and these are traders with decades of experience who know everything about the financial markets. They are the kung-fu masters of trading, and they know that anything over a 30% return for a year is a good return.

 

My aim for this year is to make 30% returns. I would be very happy with that – but truth be told, I would even be delighted with 20%. This is a level that most fund managers strive for, with many of them not even turning a profit. So my advice is, if you are a beginner, to aim low – perhaps even breakeven would be a good result for your first few months, and build from there. A first year profit of over 20% is excellent, and if you can do that, then you have every chance of having successful trading career.

 

One Response to What is ‘Success’ in the Forex Markets?

  1. Hello

    Do you have any thoughts about forex hedging instead of the normal stop?

    Look forward to your reply

    Stephen

    stephen woollon
    March 21, 2013 at 12:25 pm
    Reply

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