subject: Forex Profits - How Much Profit Should a New Trader Expect in Their First Year of Trading? [print this page] Author: Kelly Price Author: Kelly Price
This is a question I am frequently asked and of course results will vary but here I will try and give you an indication of how much a trader with a good education, can make in terms of profit and the draw down they can expect in their first year.
Many traders come to Forex trading with unrealistic expectations - First the majority they think they can follow others and make no effort and then buy a Forex robot which claims can make several hundred or thousands of percent in terms of annual profit, with little or no draw down but this is NOT the real world of Forex trading. Anyone who wants to trade Forex should understand you have to make an effort to learn skills and that risk goes with reward, lets take a look at this in more detail.
The best traders I know will make between 50 - 100% per annum on their capital and as a rule of thumb. on a 50% gain, you can expect a 20% in draw down from peak equity and in terms of 100% gains, you can expect 30 - 40% in draw down and the period of losses can extend for several weeks.
If you can make 100% per annum, you are up there with the very best traders and over time, this will compound up to a huge sum of money. The key when you start is to keep risk low and be very selective in the trades you take. There are no rewards for effort in currency trading, just being right with your trading signal is all that counts. Once you have some profit, you can take more risk; because its far easier to take losses on profits you have made, than the capital you have deposited.
Draw down or periods of losses, are experienced by all traders even the best and you are going to have them too, so keep them small and eventually the market will reward you with some great trading profits.
Forex trading can be learned by anyone and the rewards for your effort are enormous. No ther industry can reward you with such great profits for such little effort, after you have learned the basics (which should take you no longer than a few weeks) you can trade in around 30 minutes a day, making Forex a route to a great second income which is open to anyone with a desire to learn and the motivation to succeed.About the Author:
