Is 28 % profit/Mo Realistic?

[corei]

Hi Folks,

I just performed simple calculation. On paper it looks good but I am not sure about the reality

Win rate 33.3 %
Break Even 33.3 %
Loss 33.3%
Risk/Reward = 1:2
Risk per trade = 2 %
Net Profit after 42 trades per month = (14 * 4) = 56 % - (14*2) = 28 % (comission and negative/positive compounding are not calculated)

Is it realistic to expect consistent 28% nett profit/Mo?

Thx!

[Steve Griffiths]

Hi,

I think you have to be very careful about unrealistic expectations when trading, especially of you are a new trader........... There are too many dodgy web sites that promise untold rises with little or no effort in this industry, which, if you use common sense, you should realize is complete rubbish.

I think realistically, (especially if you are a new trader) your goal in the first six months should be to become a break-even trader. You have to remember that 97% of amateur traders lose in this industry, and going after unrealistic goals is one reason for their demise. So by aiming to take it slowly will help. Then you should aim to build slowly on that once you have the basics mastered.

Yes, there are some traders who do very well, but it is better to set your goals lower to start with, then build as you become more experienced....

Thanks

Steve

[Russell Stagg]

Just to backup what Steve says:

Trade distribution doesn't work like the simulation - I personally have experienced 11 losers in a row - on a system that is 53% correct over 2000 trades. So the system expectancy is always changing - other days it's like shooting fish in a barrel.

My advice - trade 20,000 on say Ninja's simulator - as if it's real, over say 50 trades and then compare your performance with what your simulated results say.

Take that result and knock off a third for commissions/slippage/ execution errors/ platform or exchange outtages, etc and then work up from there.

[mlomker]

For me it was 6 months to being a breakeven trader, another 9 months or so with meager profits (enough to cover trading expenses), and now I'm making daily pay.

It can be done but the illusion that trading doesn't require a few years of education is just that.

[Steve Griffiths]

For me it was 6 months to being a breakeven trader, another 9 months or so with meager profits (enough to cover trading expenses), and now I'm making daily pay.

It can be done but the illusion that trading doesn't require a few years of education is just that.

Yes, that is about typical across the industry. The main problem is that 97% of amateur traders blow all their account in the first 3 months, so never get a chance to even get to the break-even stage, let alone become a profitable trader.

That is why only about 3% of amateur traders ever make it to become professionals......

I wish more other vendors were more honest about what is involved when trading, there are far too many sharks and rip off merchants who promise untold riches with little starting capitol and no effort. It is no wonder that most amateurs have such a distorted and untrue view of this industry and as such end up failing.

It is always good to hear from people like you who have trodden the road and come out successful.

I just wish more people were prepared to make the effort and take the time to learn how to trade...........

Steve

[Russell Stagg]

For me it was 6 months to being a breakeven trader, another 9 months or so with meager profits (enough to cover trading expenses), and now I'm making daily pay.

It can be done but the illusion that trading doesn't require a few years of education is just that.


What was the element that moved you from breakeven to profitable out of interest?