Is it possible to earn 100 percent profit from forex trading? Having a realistic expectation in forex profit is just as important as applying a good strategy.

I have some friends who went into forex trading with hopes of making fantastic profits. They want to gain profits averaged above normal investment returns. I don't mean to break your spirit, but please note that no investment excludes risks. It is true that investment offers in forex usually mention high return potentials, but please read on the warning put in by some forex brokers in small fonts. There are risks. And it is quite possible to lose your money here.

Realistic Profit

 

100% Return In Forex Trading

An acquaintance of mine told me once that he wanted to entrust some funds to be traded in forex. I asked him, how much return he wished each month? He said, 100%. Of course, I told him that I am unable to guarantee such result. In addition, I described various risks taht may befall him (and his funds) in forex trading. He instantly backed down and no longer interested.

Well, get real, Guys. Whoever heard of investment guaranteed 100% return without risk? Let's do a simple mathematics. If, say, you are able to gain 100% return from your principal and you compound them (compounding is reinvesting al of your profit back into capital). You invest USD250, and then in the end of the first year, it turns into US$1,024,000. In the end of the second year, it turns into US$4,194,304,000. And so on. By the fifth year, you've turned into the owner of the universe. Do you think such results is possible? You certainly can dream it.

Even for traders who have been trading for more than two years, consistent result is really difficult to attain. For the first few months, it may be possible, but to do it continuously in a long time is extremely tough.

So, how much is a realistic profit in forex trading? Some traders quoted 30% a month. Another one mentioned consistent 10% a month. So, it is actually up to you. The most important is that you should not have overly high expectation. Just make sure that you are able to make consistent profits first, and then increase your profitability little by little.

 

When You Are On Profit Streak

Maybe you don't believe what I've said above because you were able to reach continuous profits during the last month. Wow! I sincerely congratulate you. But (and this is but with big B), you should be careful not to be over-confident. Over-confidence can make you conceited and lead you into making wrong decision at the wrong time. You might think that your trading strategy is flawless. Well, it might, but the flaw in the equation will be you. 

I would like to suggest to erase those profit-streak from your trading history periodically. Also, don't boast your glory. It is your right to be proud of it, but what is the use, if it makes you conceited and unpleasant?

It is good if you have a flawless trading strategy, but losing once in a while will make winning much more meaningful, don't you think!? So, if you've been on a winning streak, challenge yourself by trying another strategy. See if you are able to get profit even outside of your comfort zone. Your profit will taste much sweeter that way.