Each trader has their own level of risk tolerance and desired daily, weekly and monthly profit targets.  Most  successful traders use daily, weekly, monthly and even yearly cutoffs. New traders shouldn’t concern themselves with profit goals, but instead focus on consistency. If you are only risking .5% per trade, a more realistic daily profit cutoff might be 1% per day.
When you start trading a live account, use the smallest lot size (or number of shares, contracts, etc…) available to you at first.
If you are not consistent yet, you should focus on learning a profitable trading system, and becoming a long-term, consistently profitable trader. If you think that you can double your account every few months in trading, you are not likely to set realistic profit targets.
In my opinion, money management skills are the most important aspect of achieving long term profitability.  I never made any consistent profits in the Forex market until I learned how to manage my risk. Setting realistic profit targets is an important part of good money management, and setting the maximum amount you are willing to lose per day, week, and month is equally as important. In trading, you are almost guaranteed to experience runs of consecutive losses from time to time. To new traders, these concepts may seem foreign, but they are absolutely essential to long term profitability.  By using proper money management, including realistic daily, weekly and monthly profit targets and cutoffs, you are ultimately reducing your risk. Hi Chris : how many hours would you have to actively trade each day to make the average 2%.
I am looking to start with 20k , is this realistic expectation for somebody totally new to trading. To meet your goal of $150-200 per day, you’d have to earn 15-20% of your $20k each month.


Obviously, you should demo trade for, at least, a couple of months, or until you are making consistent profits. I like that you’re not intent on taking many trades each month, as that has little to do with trading success (quality over quantity). I’m not sure about how a trading firm hires, but I can tell you that no amount of formal education can prepare you for a career in trading.
I have been training Demo for 5 years, worked eventually out a system that would not make me stress all day.
I found the trailing stop was very detrimental to my profit, though I may have tested it at the wrong time only for a too short period. First, you need to find a good trading system, or none of the rest of this will matter, even if you’ve just decided to only take one or two price action signals or something. Third, only after you’ve proven that you have a good system that you can make work for you, you need to start trading a live account.
Lastly, once you’re profitable with your small live account, you can start to trade with more and more money, until you are trading your full capital.
If your daily goal is 2% profit shouldn’t you weekly profit be around 10% and your monthly around 48%. This article is still here to give new traders a better understanding of realistic expectations from the market, and to remind them to use wise money management. Learn a good trading system, and then demo trade until you prove to yourself that you can be consistent in the long run (months or years – not days or weeks).
Gradually increase your exposure per trade to your desired risk level as you become accustomed to the psychological hurdles of trading real money. Yes, I’m working on a system of my own that earned me over 44% in just two weeks while demo trading.


I started getting used to the pressure and refined my system and I am up exactly 20% now after exactly 50 days of live trading. If you’re consistently profitable with real money, then you can and should add to your account. In essence, trying to force more trades than your system is giving you is a problem, while taking only the best trades from multiple, profitable systems or strategies can logically help you reach your goals.
Some systems may only give accurate results through forward testing (live market demo trading). That being said, most new traders don’t have a single strategy that they have full confidence in, much less multiple strategies or trading systems.
However, I have not started trading yet, but I have been studying a system for the last three months and I am ready to look for a broker. If time is a concern (like it is for most), then you should stick to swing trading strategies. The reality is that someone that can consistently make 10% from the market each month is a superstar in the trading world. This could give you an occasional boost in returns, but you should practice any new strategies before live trading with them. I prefer to take daily candles (swing trading), because of the time freedom and the strength of the signals.
Unfortunately i dont have university diploma, i studied economics, finance trading all by myself so i cannot go to work for a firm.



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Comments

  1. kleopatra

    Traded on a U.S., German, British or Japanese market and can entail trading expertise.

    10.04.2013

  2. Sibelka_tatarchonok

    Payout ratios, and refunds accessible if you want.

    10.04.2013

  3. Naina

    Have to gain a category 3 Funding Companies licence and.

    10.04.2013