Question from Mokgadi: Is a 10% return per month in Forex good? What is the average return of a consistently profitable trader?

Posted by Mario Sant Singh 24 December 2012 0 Comment

I received an email from Mokgadi who wrote:

Mario, is a 10% return per month in Forex good? What is the average return of a consistently profitable trader? Is it true that 95% of traders fail to make any profit?

If you can make a 10% return EVERY month, you would be an excellent trader.

Most traders aim to profit 6% consistently every month, since that would double their account size in 12 months. This is a realistic goal and knowing that your account will double in size in a year is great motivation.

A majority of people who try trading Forex give up eventually. It is not true that they don’t make any profit. It is just that their losses are larger than their profits, which eventually wipes out their account. This is a shame because Forex trading is a learnable skill.

The problem is that most people have a misconception that Forex trading is easy and will make them a lot of money. The truth is Forex trading is simple but not easy. It is simple because all you have to do is click the mouse to buy or sell. The difficult part is knowing when to click the mouse – either to enter the market or to exit.

Forex trading can give you a comfortable cash flow, but only after trading for a significant amount of time. This is because it takes time to learn this skill. Most people are impatient and want instant gratification. They want big bucks and they want it fast. They usually end up risking more than they should in order to profit more. So, it is no surprise that 95% of traders fail because they give up after blowing off their account several times.

To your success as a profitable trader,