When I ask what a average return is as a percentage for trading Forex as a modest, learned trader, I never get coherent answers.
For some reason, the first response is people racing to tell me I may as well burn my money, which simply doesnt make sense. I am just starting, and I can see it helps to have some strategy. But its not like its so random that you cant progress.
But I cant get a clear answer on returns. For example, some say:
1. Hedge managers make 10% annually at best.
And yet others say:
Making 1% a day is very good.
That would be 20% or better a month. Or even 10% if you lose half the time.
This two statements are incoherent. They can't both be true.
Can someone explain what the heck they mean? I was only aiming for 5% a month and dont see why that should be so difficult. Thats a mere 0.25% a day by my math.
What am I misunderstanding, or does everyone have their own math for calculating an average ROI percentage?
I come here about 3 times a year for three years, and I dont recall ever getting answer on anything.
Its usually just spam for some new cryptocurrency.
And that's assuming I can make sense of replies at all.
Mason Morris
I agree. Here's why you should go all in LINK. LINK is a project designed to utilize the block-chain to provide for oracle services. The development team behind LINK is working on an application that can utilize the block-chain to allow for oracle solutions, anonymous money transfers, and even the transfer of multimedia files such as pictures, videos, and music. LINK is more than just a token and the oracle service that the developer team is working on. LINK also stands to be a platform for developers to utilize so that they can build applications which stand to benefit from privacy.
You don't need marketers watching everything you buy, or police listening to & reading everything you say and share. If you want to spend your money on women and wine or arrange shitposting, you can get things done. With oracles.
Imagine being able to purchase things off of craigslist without giving up your phone number or message vendors on the DarkMarket without using annoying Oracle Problem methods. Oracle solutions on your phone for anything: prostitutes, drugs, nudes, and anything else your heart would desire. If this project succeeds, all the underworld will have a new playground for oracles, information transfer and all sorts of other grey market enterprises activities completely anonymous (literally billions of dollars in data and business outside of the power of the government can become movable overnight when this project succeeds).
Now let's do some comparisons.
XRP Market Cap = $8,612,256,950 LINK Market Cap = $134,347,150
Is LINK better? Take a look.
We are the Oracles of Swift - the eBTC founder is also a technical adviser. This is a 1/10000 type of opportunity and these don't come around often on Veeky Forums. Get on the rocket ship before it's too late.
Ethan Young
You'll never get a clear answer, because there are some many different styles.
Leo Williams
what do you want from us? forex is a unique market and almost everyone trading retail forex is an idiot, a liar or both. retail forex brokers are not trustworthy, especially the ones that take US clients. That easily covers the majority of this board's lack of interest in forex.
Leo James
And its generally bad to have targets like. Make 1% a day etc etc. Traders just go with the opportunities they are presented. Some months they barely make anything, and some months they make tons. And this all depending on how much time you put in. You're self made, you decide how much you earn.
Cameron Walker
You may as well burn your money t b q h
Jaxson Lopez
Thats fair. For example, I 'day trade' a bit and swing trade a bit. I wasn't looking so much for a random projection as to hear what one would consider a high or low average for the casual trader, not a wizard nor a stoned teenager who thinks its an online casino.
For example, I read a column the other day where someone said they stop for the day if they lost XYZ percent. It made no sense to me, since there is no magic in watching time pass while opportunities go by.
It wasnt quite the clarity I hoped for, but thats partly my fault for not specifying. I appreciate the thoughtful answer. Im happy to see theres at least one person here thinking.
I myself dont think 1% a day for either day or swing trading seems unreasonable. Of course I dont expect every day to win. But the confusion over how 1% a day or even 5% per month can comport to people smarter than me only making 10% annually doesnt add up. Even if I make a piddly 1% per month, I would still be beating managers. That doesnt make sense to me. I dont know how these people are getting their math.
Cameron Barnes
You can make money with futures, but its completely news, politics, and commodity fluctuation based.
So some farmer in Ecuador can fuck up your soybean profits.
So its really gambling on what the price will be as its based on chaos itself. Goldman lost a lot betting on oil futures for example.
Adam Thompson
My two cents on the question is that I think massive hedge funds have bigger risk management than you. They may achieve 10% annually because they never go all-in with their trades. Whereas you may involve more money on you trades, making bigger gains, but taking higher risks
Kayden Roberts
PS I am in finance and have working knowledge of futures, but I never got into it as two things I will never do in trading:
Using margin And betting on commodities.
I will however:
Loan to people for margin Short (rare though) Trade currencies (which is why trading crypto is ok with me) And go long on shit stocks
Justin Gutierrez
PPS Technically I do margin, but I never use my own money.
Carter Hughes
Also most hedge managers have a team of researches about world events and you do not.
Also they short and long the same position rather than hodl. Which if you have to get into futures, remember you can always short out your long or long your short to get out before you they call your margin.
Justin Ross
Forex is a magical realm where rivers of silver coins flow under trees that blossom bank-notes, and butterflies soar under a warm, yellow sun made of gold. Puffy white bags of cash sail over rainbows that are constantly green tickers, and at the end of every one there is a feild of growing, green compound interest.
And the only way to leave this paradise is on a bejeweled chariot that flies only one place- to the gleaming, shining moon.
Samuel Hernandez
Thanks, but I was only curious about forex. I may try futures at some point though. I did save your pic tho lel
Maybe. Its just such an odd disparity in the numbers I get, and I wonder how they jive with each other. There may be a lot to what you say. I trade for fun as much as anything, and mostly to learn something new. I like applying new disciplines and trying different strategies. So I never feel compelled to make huge risks, and never worry much about any loss. So I dont fret with any account-killer moves, and even if I did make such a move, I wouldnt get fired for it. Its just one person, me.
I like it because you can be aggressive or reserved, depending on how you feel about whats out there on any given day.
But the ROI percentages I hear when I ask are so odd. Consider: if I made only 1% a month and lost half those months, according to the internet, I would be half as good as a hedgey over a year. That doesnt add up.
I just get peevish when I set the general threshold as modestly as I can and still have people telling me I am being unrealistic.
Ive grown suspicious of those who hate the whole forex market and call it a scam. To me, it just says they didnt do well and didnt try to learn from mistakes.
I read somewhere that traders are usually actually right. Its just that they let losses run too long.
Joshua Moore
I'm curious: why no margin? I've heard this from others. I have no opinion, I'm just curious.
Julian Adams
Well... 2008 is a pure example of why margin can ruin your life in a single day.
It's great in theory... I'm not sure if you know the technicals of margin trading but here is my ELI5.
You put in 75% and they give you 25% (It's not like that but easy for my math example).
So if the price goes up, then you get a 25% bonus for free (except for the margin loan fees).
If it goes down, then you are ok unless... It goes below the margin call level and in this example the margin lender needs to get his 25% back. So if the value of your stock and his does not equal getting their 25% back (not doing the math for you right sorry... don't drink and trade) then you have to put money into your margin account make it so that they are guarenteed to get the money you were lent. Otherwise, they do a margin call and you are forced to sell and they get their 25% and you get what's left over (and if the stock crashed it means you get a lot less) and this also means you can't just hold your way through some bad news until a possible turn around.
I've had stocks that I bought that went down 20% but then whey back up to after EOY financials came out and the news was just FUD. If I had margined that, I would have to have kept putting in money in to meet the calls and since I shouldn't (at least legally) know that the company was going to have great financials then I could be just throwing money into a black hole and then run out money and they do a margin call and then I'm really fucked.
Speaking of which shorts work the same way... But with one caveat, you can technically lose infinite money with a short, but that would require the stock to up to the moon so that never happens. (Shorts have margin calls too)
But I feel when the news is bad, its easy to short because there is a delay on people figuring out if they are going to hold or not.
But... If you are going to trade on news swings, then just to options for fucks sake. I wish I did nVida at $100 last year.
Josiah Lopez
I see. I guess I feel that way about stocks. Its a very stormy sea to sail on, while Forex, I feel, gives me a lot of micro control if I want it, and not if I dont. FX is technically options anyways.
My timing isnt sharp enough yet for news yet. I havent mastered the 'price action reversal yet'. News can be fun, but risky too. I forget what it was, but I remember there was some report in August that was upside down, and thank god I didnt get caught it that. I have had too many close calls to rely just on news.
I should check CAD and RMB. RMB looked good last I was in, and CAD is a cheeky pair. EUR seems like chaos incarnate, and I cant get a bead on the Aussie. Just when you think you got the AUS figured out...
Must go, thank you for the insights. Have a great day.
I will be back to read later.
Liam Edwards
By the way... I used to think Crypto was a load of shit and was juts like World of Warcraft gold, but then I started seeing talk on CNBC and real traders getting into it.
If you are in the USA you can do Bitfinex which allows you to make loans to margin traders with less fees and higher rates than you can loaning stocks.
BUT
This shit is unregulated and I would not put a lot of money on any exchange at this point.
Sadly, Bitfinex is making all US customers get out and after my ETH loans are up, I got to get out by November 9th. Looking at other platforms, but most of the ones in the USA are shit and don't give good rates on margin loans.
Luke Ward
Can't. Again with the drinking. Bitfinex got tired of the US regulators so rather than complying they are kicking all US customers off their platform.
Which is sad but its fairly close to FactSet or Bloomberg in what you can do with it and crypto.
Aiden Long
The fact that you don't understand this isn't a reflection of your math ability.
It's a reflection of the fact you have literally zero concept of the way the world works.
Seriously
>comes to Veeky Forums >calls himself a learned trader >asks a question he should already know the answer to >ask a question that anyone with two brain cells can figure out with Google >"guys 79% YOY is only a mere 0.25% a day! I don't see why that's difficult" >"I don't see why it's difficult to make 79% a year" >can't conceptualize the fact that if it were that easy, everyone would do it >can't conceptualize the fact that you are trading against bots that can buy and sell the same security literally thousands of times before you even type in your order
>I come here about 3 times a year for three years, and I dont recall ever getting answer on anything
Because you're a fucking idiot that needs the most basic, easily-searchable concepts spoonfed to you.
