How much profits do you expect to get back from a USD20,000 trading account?

iMusingKiMi

Sergeant
Messages
896
Very true ! 20 to 30 % in your pocket, is already an excellent yearly performance, even investing in most hot hedge funds you will never see such returns, besides on the paper, one year it may be plus 50 % next year it might hit minus 150% :eek: not even mentioning the fees
This is the reason why most institutional firms offer structured notes, if somebody ever heard of it. In other ways, they will diversified the risk to buyer and earns from their money. Indeed sometime those note could hit 20% sometimes after paying coupon, and with very low risk.
 

oscarra

2nd Lieutenant
Messages
1,182
This is the reason why most institutional firms offer structured notes, if somebody ever heard of it. In other ways, they will diversified the risk to buyer and earns from their money. Indeed sometime those note could hit 20% sometimes after paying coupon, and with very low risk.
Not specifically, besides some products which do protect capital however no guarantee for returns, one more risk

…wonder how the Turk carry trade is performing :(
 

baby_trader

Recruit
Messages
14
How much profits do you expect to get back from a USD20,000 trading account in 260 trading days (one year)?


I have posed that question (or something similar) in various forums but have not received any straight forward reply.

Yes, indeed, will traders be satisfied with returns which are slightly higher than normal bank interest rates at around 2-6% p.a, or will they be happy with highest bank rates (that I know of) of 14% p.a?

I highly welcome all inputs as I am extremely curious to the reply(ies) and, for now, will refrain from answering that question.
==============================

Someone posted at another forum:
"The very best hedge fund manager in the world make 20% PA, Warren Buffet is at approx 30% PA for his entire career, my trading hero Paul Tudor Jones is at about 25% PA for his career...."
This really depends entirely on your style. How much are you risking per position? How much in percent? How often will you enter in the markets? How much is your leverage? If you can answer these questions than you can start calculating how much can you profit from an account like this. But without any information it's hard to tell you anything.
 

TrapLok

Recruit
Messages
132
The amount of profits do not solely depend on the amount invested in it. It also depends upon your luck as well. There are no fix returns or profits in it. I advise you to not invest such a large amount at the same time. Invest in small proportions and see the results and then act accordingly.
 

Whitesnake

Corporal
Messages
428
Not specifically, besides some products which do protect capital however no guarantee for returns, one more risk

…wonder how the Turk carry trade is performing :(
There is no guarantee for returns if we have unrealistic expectation and risk more than what we can afford to lose. By proper management and with patience one can certainly make consistent gains. Surviving in the market is of utmost importance.
 

nahiyar

Private, 1st Class
Messages
799
Even bigger accounts are not guarantee of profits all depends on your trading skill and reaction to certain market conditions. Make a plan how much you can afford to loose then loss will not uncertain for you . Then take proper risk in trading and expect realistically . Low and consistent profit % is very apriciateable than of having once you get high income wiat several months for another jump . It not shows your ability it is just by chance. Struggle , fight and challenge are important for a forex trader.
 

Qasim waqar

Private, 1st Class
Messages
40
There is no end of expectations specially unrealistic expectations are more than expectations . On the other hand our knowledge and skill is limited. Frankly speaking we are not able to get all expectations even with high skill . Low expectations are better than of high because they not make you hope less. I will try to expect just 5% to 7% of profit with this amount if investment . Certainly avoid greed in trading.
 

iMusingKiMi

Sergeant
Messages
896
I
Not specifically, besides some products which do protect capital however no guarantee for returns, one more risk

…wonder how the Turk carry trade is performing :(
According to lately research, it is increasingly less profitable despite the considerable interest rate difference. I don't really know about something that protect capital but doesn't guarantee returns. But anything without return, I don't see a point to invest.
 

iMusingKiMi

Sergeant
Messages
896
There is no guarantee for returns if we have unrealistic expectation and risk more than what we can afford to lose. By proper management and with patience one can certainly make consistent gains. Surviving in the market is of utmost importance.
Most people loss money mainly due to lack of money management. They thought they can get rich quick in financial world, but in fact most people use big to profit small instead of small to win big.
 

bigdolly

Sergeant Major
Messages
973
Most people loss money mainly due to lack of money management. They thought they can get rich quick in financial world, but in fact most people use big to profit small instead of small to win big.
It all comes with experience, learning by our own mistakes. Risk control is the weakest spot of any newbie trading.
 
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