Which Kind Of Returns Do You Expect To Make From Forex Trading?

Forex traders can see substantial benefits from the capital they invest for trading, but at the same time can experience loss. Have you ever ask yourself the amount of returns you're expecting to make from your forex trading account？ Surely you will shout..I want to make some money from this trade!

Yes, of course, anybody whos interested in forex trading certainly has ambitions of raking in some dough. But Trading involves risk, and we expect to be compensated for those risks. Without arguing we all knows that every currency trader expects to make a profit.

However as a trader, The questions that you should ask yourself are this:

What kind of returns do I look forward to get？ And how much risk am I willing to take to get these returns？

The way you respond to these question will play a greater role in determining what kind of trading style you will implement, what currency pairs and times you will trade, and most importantly, the risks involved in the trade for you to achieve those your goals or to get the expected returns.

Lets take a look at an example to be able to explain explain this better and understand it more.

Mario and Luigi

Lets say there are two forex traders, Mario and Luigi.

Luigi is targeting to score 10% a year while Mario is a little more determined and courageous that He wants to double his account and make 100% returns! A head of luigi So that he can marry a Hot princess....lol!

As you can notice, a trader like Mario, who is looking to double his account, is in a very different situation. It is very possible that Mario will have to out more money to take a lot more trades and/or risk more than Luigi. Also He will have to reveal himself and face more potential losses if he ever wants to achieve his goal of 100% returns. But Traders will also have to take into consideration capital drawdown

When it comes to forex trading, drawdown refers to the difference between a high point in the balance of your trading account and the next low point of your account's balance. The difference in your balance reflects lost capital due to losing trades. We can later explain it in more details..

Every wise forex trader must decide how big of a drawdown he or she can take care and go with in order to hit their profit target goals.

Moreover, there are forex traders who are can't take much risk and instead would have small drawdowns. The advantage is that this will also limit potential profits. Also, there are forex traders who are comfortable with large drawdowns, just as long as their system also gives huge returns.

Additionally, you will have to take into consideration how much time you can dedicate to trading. Because your time is not all for trading.

When you fail to allocate some part your time to be time working on your trading system, reading up on the financial markets and learning new trading techniques, recording/reviewing your trade journal, then we can assure you that you will have a difficult time hitting your goals. If you cant make this time commitment, you may have to readjust your expectations as to how much you can make your account grow.

Just in no what happened, you should know that success depends on you. If you have the discipline to scrap it out consistently to twist your skills and gain the experience needed to control the markets, then you're good otherwise, then expect inconsistent returns, if any at all, over the long term.