Realistic Returns for a Forex Trader

Alexandros Theophanopoulos
7 Min read

We've all heard stories of a person who perhaps came from a lower-class background, who began trading and was able to achieve success, earning millions in the process. Often these stories are heartwarming and inspirational, and teach us that all you really need to succeed is hard work, determination, and perseverance. The types of stories will also teach us that we have to be extremely focused on our goals, to learn as much as possible every day, and that in the end, all the hard work will eventually pay off.

Real-life stories like this are, of course, extremely rare. There is also another type of story. The story of a professional trader who made millions trading for a few days, then lost everything because they were convinced they had found the ''Holy Grail'', perhaps through some specific Forex strategy – when in fact, they just had beginner's luck. Unfortunately, we cannot expect the stars to always align in our favour. It's important to understand that random events, like 'luck' are unreliable.

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Forex Investment | Effort, Focus, and Determination

Suppose that you owned a company, what you would do with your own company? When you decide to start a company, you do not just invest in the first idea you hear about, right? No, a sensible investor shops around first, and considers various options before committing to anything. Once you're running your business, you probably won't just go with the flow of things either. To make your firm operate effectively, you need to plan, set targets, check progress regularly, and set budgets.

The same principles apply to trading. As with fulfilling your life goals, in meeting your Forex goals, you need to really apply yourself, with a great deal of effort, focus, and determination. As Vince Lombardi once said, "the only place success comes before work is in the dictionary". When you Google something like "Forex monthly return", you may stumble into some outlandish account statements, or claims of people that are supposedly making millions per hour.

Don't forget that with every story of extremely successful and rich traders, there is usually a catch.

You might hear a story about a Wall Street trader making 10 million USD a year, and it may even be true. But, what the story may not mention is that the traders manages billions of USD. Those 10 million USD are less than one percent of the total account that the trader manages. Compare that to a 1,000 USD account, it then amounts to a return of just 10 USD a year!

Before you attempt any form of trading, it is recommended that you do so first within a risk-free trading environment, via a Forex Demo account. This will allow you to try out different strategies, techniques, and timeframes, without putting your capital at risk.

Most stories don't make that fact evident – sometimes deliberately – so ordinary people get the wrong impression. The actual results of this magnitude are very rare. If you doubt the rarity of successful large-scale Wall Street trades, ask yourself, how many times you have seen a Wall Street trader publicly display his or her results? Of course, there are exceptions, but 90 percent of the most successful traders won't share this information, because they simply aren't performing at that level.

Forex Investment | Back to Reality

There are a lot of traders who believe that a combination of proper capital management and correct strategy application can lead to high returns. But most traders may also sustain considerable losses because they have do not have enough initial capital to get them through to the potential next win. For the majority of professional traders, the average Forex monthly return is between 1 to 10 per cent per month.

Remember: you won't get anywhere near a return on your investment if you don't put sufficient efforts into educating yourself and learning how to utilise the different types of analytical and high quality trading tools that professional traders use.

Interested in practicing your trading under real and live market conditions with virtual funds? Register now for a free demo account and hone your skills before putting them to the test in the live markets! Click the link below to register:

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1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3. With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
4. The Analysis is prepared by an independent analyst (hereinafter “Author”) based on the personal estimations of Alexandros Theophanopoulos (SEO and Content Specialist).
5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
6. Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
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