What is the realistic profit goal from forex?

Quote from nlslax:

Granville,
Why did you choose FX as your primary market vs stocks, options or futures?
Thanks.
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Because any system I might design in Forex can be scaled up to a much larger size than would be possible in any other market. So I really have to say its the liquidity.
 
Quote from late apex:

The next logical question then might be: is at least 100 - 200 pips a month a realistic goal for a serious, passionate, dedicated trader with a $100K account, consistently over time? Absolutely, without a doubt. That, and much more. Now, what about the same earned pips, combined with 10:1 leverage all the time? Aah, that's a whole different ball game / skill level...
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Please elaborate the "10:1 leverage all the time". Thanks.

Are you saying something related to position sizing , if not "all the time"?
 
Quote from MrsSavant:

I personally stay away from goals. Some systems have wild roller coaster rides where other systems produce a smooth upward sloping equity curve.

Electric will tell you he prefers smooth upward sloping equity curves with no jagged edges, even if they yield less. Where I prefer the excitment of catching the spikes. When I work my shift, I am waiting for those spikes with my finger on the trigger. This is why I can only scalp/arb for 4 hours at a time, as it is impossible to keep focused longer.

Everybody has a different personality. Do not limit yourself.

Wifey
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I've been trying this a few days a week , depending on volatility.

absolutely exhausting after a few hours. I felt like my eyes were going to bleed and my brain was numb.:p
 
Quote from jm73:

I have read somewhere that if somboday can make 20% of consistent annual prfot, it is considered outstanding.

Is "20%" meaning 20% of your trading size or your acct size?

If the 20% annaul profit of acct size is considered outstanding for spot forex, I think we are all wasting time here.

I totally agree that 20% annaul profit of trading size (leveraged amount) is considered outstanding.
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Perhaps Return vs Risk.
 
What is the realistic profit goal from forex?

I would say a realistic profit goal would be to lose between 20-40 pips per day, on average...:p
 
Hi Granville,

Liquidity, are you serious? If you are talking about intra bank trading where you shifts 10s and 100s of millions of $, then yes the liquidity is there, but chance are you are talking about of the retail market makers. Do you realize that by trading with any of them, you are just exposed to this broker platform and not 2 trillion $ market. CME currency futures has a much bigger liquidity then ANY FOREX MARKET MAKER.

Be careful, be very careful when you start trading 10,20,30+ standard lots at forex brokers.

redduke
 
Quote from RedDuke:

Hi Granville,

Liquidity, are you serious? .......
redduke
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Redduke - Good point. Right now I am using Interactive Broker's IdealPro, which is good for now. It is like an ECN, but not exactly, at least there is no dealing desk. After IB's system, there is always Currenex and other ECN's out there to access. And as you mentioned, FX Futures are available to trade as well.

Granville
 
I am gald you are fully aware about it. You'll be surprised how many people think that by opening account at xyz forex.com they are exposed to 2 trillion dollar market.
 
Quote from RedDuke:

I am gald you are fully aware about it. You'll be surprised how many people think that by opening account at xyz forex.com they are exposed to 2 trillion dollar market.
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For longer term strategies, a retail broker might still work for large sums (FXCM will absorb $15M buy/sell orders at a time), but higher frequency systems need an open market.

What do you trade RedDuke?
 
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