Average daily return for a standard day trader

[ak1000]

Dear all,


I'm new to this great forum and find it very helpful.

Just wonder whether anyone here could help advise normally how many bps a standard day trader will gain daily?

Cheers

 

[ak1000]

Hi all,

for above inquiry, I mean, from the perspective of an individual trader working at home...

 

[JonnyT]

bps?

Bullsh i t per second?

The question is not valid because it depends on what you trade, how you trade, what risk management you have, what capital you have etc etc.

JonnyT

 

[ampro]

The question is not valid because it depends on what you trade, how you trade, what risk management you have, what capital you have etc etc.

absolutely

you're coming in from the wrong angle. if you're new to forex as well as the forum, your averages will likely zoom in on debits rather than credits.

the focus should be concentrated on how you're gonna play your instrument (strategy/risk/capital deployment), but then, you haven't offered forth any indications on how or what you trade?!

delete the profit potential-averages-$$'s call it whatever from your mind, cos if you try play to those - they'll quickly come back to haunt you.

 

[commanderco]

Dear all,


I'm new to this great forum and find it very helpful.

Just wonder whether anyone here could help advise normally how many bps a standard day trader will gain daily?

Cheers

If you are referring to forex, then as a Trader you would know already know the answer to this question.
Therefore, I conclude that you are new to trading.
In this case your question should be.
"I have ´n´dollars of capital. As a Day Trader how many days will it take for me to go bust"

The answer will be as it always is "It all depends!"

 

[Ross-G]

I must admit I thought the average daytrader actually loses money, or is the 90 percent lose statistic just an urban myth?

Does anyone have an idea of what the reality is re sit-at-home forex traders with big ideas?
And as most will use standard ideas to trade does that mean these ideas don't actually work unless you're one of the 10 percent that have an edge?

 

[peto]

Trading fx futures is often refered to as a 'zero sum game'; i.e. for you to win another trader(s) somewhere obviously has to lose. If this were true you would win in the long run if you're better than 50% of the other traders out there (unlikely if you're new to trading).

The reality is that every time we trade we pay broker's commissions (and spread with market orders). Consequently one must be MUCH better than the other 50% to make money consistantly, and the figure of only 5% or 10% making it is probably much nearer the truth.

Trading forex through other mediums than futures is unlikely to deliver a more favourable result. In most of these cases you are betting 'against the house', even harder to win.

So Commanderco and others are right, your question would be better phrased along the lines " how many accounts will i blow away before I learn how to stay profitable or give up trying!"

 

[commanderco]

I must admit I thought the average daytrader actually loses money, or is the 90 percent lose statistic just an urban myth?

Does anyone have an idea of what the reality is re sit-at-home forex traders with big ideas?
And as most will use standard ideas to trade does that mean these ideas don't actually work unless you're one of the 10 percent that have an edge?

You have pretty much answered your own questions.
Firstly, put a spin on things and say that " 10% of the Traders walk off with 100% of the money"
That feels a lot better I am sure.

Now comes the fun part.
10% of the Traders walk off with 100% of the money and 100% of the people read the books.

You need an edge, actually you need a substantial edge.
Some of that edge can be found on this site and the rest you will have to figure out for yourself.
However take heart, trading for a living is very doeable.

 

[peto]

10% of the Traders walk off with 100% of the money"

I'd say 10% of traders walk off with half the money. The brokers/ spreadbetters/cfd providers/bookies keep the rest

However take heart, trading for a living is very doeable

If you manoeuvre yourself into that 10%. Can take years and for many it will never happen.

Sorry to be depressing, and you will need a positive outlook if you are to succeed, but you should know the facts before you start out.

 

[ampro]

Now comes the fun part.
10% of the Traders walk off with 100% of the money and 100% of the people read the books.

You need an edge, actually you need a substantial edge.

and (in the currency arena anyway) the vast % of the retail herd are sheperded around the pen kicking up dust, tripping up over their heavy indicators.

not having read too much of the 'teach me-show me' blurb out there, I wonder how much of that costly merchandise extole the simple virtues of observing the key action levels (H/L/C) & overnight range plays? - now there's the beginning of an edge if I ever I saw one

 

[ak1000]

fx futures brokers

Trading fx futures is often refered to as a 'zero sum game'; i.e. for you to win another trader(s) somewhere obviously has to lose. If this were true you would win in the long run if you're better than 50% of the other traders out there (unlikely if you're new to trading).

The reality is that every time we trade we pay broker's commissions (and spread with market orders). Consequently one must be MUCH better than the other 50% to make money consistantly, and the figure of only 5% or 10% making it is probably much nearer the truth.

Trading forex through other mediums than futures is unlikely to deliver a more favourable result. In most of these cases you are betting 'against the house', even harder to win.

So Commanderco and others are right, your question would be better phrased along the lines " how many accounts will i blow away before I learn how to stay profitable or give up trying!"

Dear all,


Thanks for your kind information


By the way, would you pls help provide some good website for fx futures & recommend some good online fx futures brokers?

Cheers

 

[c6ackp]

Hi ak1000

For CME FX futures:

interactivebrokers.co.uk
futuresbetting.com

Steve

 

[ak1000]

Thanks a lot!

Hi ak1000

For CME FX futures:

interactivebrokers.co.uk
futuresbetting.com

Steve

Dear c6ackp, thanks a lot for your kind information. Cheers!

 

[Der]

ampro....You talk of 'over-night range plays'. You are located in the UK so I suppose you mean the Asian session. I note that the poster is based in HK. Is this likely to make a difference to him/her. I am attempting to work out what you are getting at....

Best wishes ak

 

[ampro]

yes, I do mean the Asian session range. Apologies for the confusion.