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FAQ Realistically, How much Money can I Expect to Make?

i just recently started full time trading my own account and " how much money are you making?" is just about the first thing anyone asks. personally i think that the question is flawed and shows a lack of understanding about the markets. I cryptically tell people that in trading, money is an irrelevant variable, in that, what ever you made could be ten times more or ten times less depending on if you put ten times more or ten times less on. If you can't make money with say a 3k account, 30k or 300k account wont make money just increase the loss.
Money is the RESULT of good consistent trading, and money management, if you can CONSISTENTLY make £1 profit a day you'll do just fine.
cheers B.
 
hi there !!

Realistically, one cannot expect how much money you would earn on a trade...

Its uncertain, it entirely depends upon the market fluctuations, your perception towards the trade.

But Yes...there is a saying that never expect profits but anticipate for cover the loss if any

so that works here....
 
Re: How much money can I realistically expect to make?

firewalker99 said:
I think that's a stab in the dark indeed, but when a trader loses money another trader makes a profit. The only profit brokers make comes from spread and commission costs.
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Sorry to drag this up but that is complete nonsense especially in regards to many market makers and bucket shops.

Read your fine print and you'll find that the other person on the end of your trade is your broker. If you win, they lose, you lose they win.

Why do you think IG slip you at every chance possible?

Only ECNs and STPs provide opportunities where your broker isn't on the other end.
 
Re: How much money can I realistically expect to make?

Dubai said:
Sorry to drag this up but that is complete nonsense especially in regards to many market makers and bucket shops.

Read your fine print and you'll find that the other person on the end of your trade is your broker. If you win, they lose, you lose they win.

Why do you think IG slip you at every chance possible?

Only ECNs and STPs provide opportunities where your broker isn't on the other end.
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To add to that, as the original comment also jarred with me from a logic point of view, just because you sell at a higher price than you bought (hopefully), this doesnt imply the buyer is making a loss does it?

This would imply financial markets are a glorified pyramid scheme (/ponzi scam) and there is no wealth creation?

Correct me if I'm wrong, I'm still evolving from monkey trader status.

S
 
I feel as if the title to this thread may have put people off.
As that is the only way I could see why more people have not read and repsonded to this thread which probably contains the most important information any trader could have.

T2W Bot is absolutely correct when speaking about focusing on your risk and don't even begin to dream of profits. One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
 
ProfessorK said:
I feel as if the title to this thread may have put people off.
As that is the only way I could see why more people have not read and repsonded to this thread which probably contains the most important information any trader could have.

T2W Bot is absolutely correct when speaking about focusing on your risk and don't even begin to dream of profits. One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
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Balls. Go all in on your first trade. Who knows, you might get lucky.
 
ProfessorK said:
One thing I will say however is that in my own opinion I think that the common wisdom of low risk being 2% of your trading account per trade is dangerous. I'd highly recommend dropping that number as low as possible, preferrably below 0.05%!!!!
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might as well put your money in a savings account and agree that speculation is not for you :confused:
 
Pabmove said:
The OP got this one right >>> Don't focus on the $$$ and the $$$ will follow
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Yes so true , earlier i had crazy expectations like daily i will earn 10k in a single day and such thinking results in more losses than gains unfortunately , the more we think about risk more we get rewarded for it. I will tell you the change for me personally from 10k "daily targets" i toned down to 625 which is more realistic and achievable on a daily basis. In a nutshell having realistic expectations is better for one's mind , body and soul.
 
IF you solely focus on profits each day, and have a target.. and you meet it, there's a strong possibility you're not getting the most from the market. Potentially you could be missing out on more profits.
 
Aesop20 said:
IF you solely focus on profits each day, and have a target.. and you meet it, there's a strong possibility you're not getting the most from the market. Potentially you could be missing out on more profits.
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This is the trap that all new traders (myself included) always fall for. The markets are unlimited and there is always an opportunity to make more profit. We humans cannot cope with this. We have to impose rules and structure on ourselves if we are to succeed in generating a profit in trading.
 
Yes thats true after i reach my daily goals , i observe markets and if an opportunity comes one would be a idiot to not welcome it with open arms! What i meant to say was having realistic views is better than unrealistic views. In my case 10k was unrealistic , 625 is realistic however that does not mean i stop once i reach that goal. I am just simply highlighting that going home with 625 is better than 400 or a loss by holding on "too long" This business is an amazing balancing act , i feel Tightrope walking professionals might feel jealous with the amount of balancing act we as traders do! :LOL:
 
Nikhil Dogra said:
What i meant to say was having realistic views is better than unrealistic views. In my case 10k was unrealistic , 625 is realistic however that does not mean i stop once i reach that goal. I am just simply highlighting that going home with 625 is better than 400 or a loss by holding on "too long" This business is an amazing balancing act , i feel Tightrope walking professionals might feel jealous with the amount of balancing act we as traders do! :LOL:
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Yeah i'd agree and i think you've done the right thing to realise a more reaslistic target, one that you know you can meet, and possibly beat more often than not. It's a lot better feeling as you'll feel you're actually making something of it.. plus the fact you actually are rather than as you say holding on and it all going pear shaped. Don't get too greedy ;)
 
Aesop20 said:
Don't get too greedy ;)
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Its very easy to say but so damn hard to actually not be greedy , i have learned to conquer my trading fears , by that i mean if a position goes against me i use orderflow analysis if price has gone through my mental stop i don't book it asap usually market is shaking weak traders out and in 100% of time markets do come back [provided one is trading with the underlying trend] Rest i am working on not being too greedy , yesterday in crude oil i let my 3900 gain turn into a 625 (n) just by being greedy for few more hundreds!!

I have conquered fear , now greed left! I wish someone had a cure for this "need to want more"! :confused:
 
I think this is the crux of it. Instead of thinking "how much can I make" you should think about setting a target to make an amount. If you asked traders if they could make say 10 points on the DAX in one day, most would say yes. So suppose you set yourself a target of 10 points, and you would wait until you had a set up where there was a really good chance to get 10 points, (this happens 3 or 4 times a day), and then, once you have the 10 points, No More Trades.

The limit to how much you can make is only in your head. Once you can get 10 points per day, you can build your account. 10 points at £10 per point (one contract) is £100, 10 contracts for 10 points is £1000, and so on. Lets start with a £10,000 account and see how long it takes to turn it into £1 million.
 
Last edited by a moderator:
brewski1984 said:
Never works out like that though does it.
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Nope, a/c grows position size grows, greed grows and so does the losses :LOL:
It can be done though turning 10k into a million, time taken would definitely be long
but it can be done, only hindrance would be ourselves.
 
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