Raging_Bull_FX posted: To be less emotional when trading requires you to have a high win ratio, the more you lose the more mistakes you will make…the more you lose, its a feedback loop. The average monthly return trading Forex is generally negative. The Forex market is all about borrowed money. So a monthly return really depends on how much you borrow against your account size, the cost of that borrowed money is called the swap rate. The swap rate is calculated daily and costs triple one day a week, this is how the brokers make their money, they are in the lending money business. So with an account size of $1000 or a large account size does not matter. If you trade a micro lot size which is $1000 you have a leveraged ratio of 1:1 (based on your account size of $1000) the broker will charge you interest on that lot size daily. Depending on the pair and trade direction you may receive or pay interest daily, the interest rate will vary depending on the pair. As you can see we haven’t even developed a winning strategy yet and we are on the back foot with interest payments. Brokers are very happy for you to be a winning trader because the more money you make the more you borrow and they charge interest on a larger amount of money (Win / Win) There is more to learn about the back end of the broker business but I will keep it simple. Now let us assume you have developed a winning strategy that has overcome the cost of trading Forex. What is the best time to start withdrawing profits? Realistically looking long term I would say you will make about 1.5% a month so you will want to compound that return. After 30 years your account will be $212,703.78 with an annual return of $34,801.01 Based on a starting capital of $1000 that is a very impressive return per annum. Depending on your financial goals plan accordingly. I can imagine traders saying 'Thirty years!....no way I need big cash now!!!'. Remember this is just starting at $1000, you can always add more over time....and sometimes the turtle does beat the hare. Now the elephant in the room……how do you develop a successful trading system where you won’t become emotional and destroy your profits? I am extremely confident you will struggle to achieve that goal. Automation is the solution, use Mt5, not Mt4. Do all the backtesting and code up your own backtesting with variable parameters, have a minimum of a 1000 trade sample base, per currency pair. This becomes harder when choosing higher time frames, the data over a number of years can become unreliable from the broker. The reason for such a high test sample is to find the 0.01% outliers which can destroy a system. You will also need to find or become a very good and trusted coder. You may be asking right now 'so have you managed to climb this coding mountain?' The answer is yes but I can't share it with because of the forum rules. I hope that is helpful for traders out there, good luck to you.
Thanks for the information. But I don’t like swap. So I use swap free account.
That was interesting but always remember that you should trade using a strategy and not focus on your emotions. There is no place for emotions in trading. The application of your skill and knowledge will help you develop or use a strategy that is profitable.
A proper trading strategy will only help you and your trade. It is your knowledge and skills that will add to the successful execution of your trade. Make sure you work on using a strategy that suits your trading style.
AVERTISSEMENT SUR LE RISQUE ÉLEVÉ : Le trading de devises comporte un niveau de risque élevé qui peut ne pas convenir à tous les investisseurs.
Leffet de levier crée un risque supplémentaire et une exposition aux pertes. Avant de décider de négocier des devises, examinez attentivement vos objectifs dinvestissement, votre niveau dexpérience et votre tolérance au risque.
Vous pourriez perdre une partie ou la totalité de votre investissement initial. Ninvestissez pas largent que vous ne pouvez pas vous permettre de perdre. Renseignez-vous sur les risques associés au trading de devises et demandez conseil à un conseiller financier ou fiscal indépendant si vous avez des questions.
Toutes les données et informations sont fournies "en létat", uniquement à titre dinformation, et ne sont pas destinées à des fins de trading ou de recommandation.
Les performances passées ne sont pas indicatives des résultats futurs.