38. Profit Expectations: What Millionaire Traders Know
Posted by admin in Finance Wednesday, 26 May 2010 13:11 34 Comments
www.informedtrades.com A lesson on how most traders have unrealistic profit expectations which cause them to lose all their money and what realistic profit expectations are when trading the stock, futures or forex markets. The first step in understanding and building a solid money management plan, the key component in successful trading, is setting realistic profit expectations. All too often I see people open trading accounts with balances of $10000 or under expecting to make enough money to support themselves from their trading profits within a short period of time. After seeing all of the hype that is out there surrounding most trading education, trading signal services, etc it is no wonder that people think this is a reasonable goal, but that does not make it a realistic one. As most any truly successful trader will tell you, the stock market has averaged somewhere in the neighborhood of 10% a year over the last 100 years. What this basically means is that if you would have invested in the 30 stocks that make up the Dow Jones Industrial Average, the index which is designed to represent the overall market, you would have earned about 10% on your money on average over the last 100 years. With this in mind, what most any truly successful trader will also tell you, is that if you can consistently double that return, on average, over the long term, then you will be considered among the best traders out there.
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Has anyone considered getting an account with zecco. There is no minimum deposit needed to open an account.
In my view, 20% per year is the minimum return of any profitable trader, otherwise there’s really no point – why risk drawdown when you can get 10% in an index fund – set and forget? I wouldn’t say its the “top” of traders. Second, there are enough stories of traders who can double and triple their accounts in under a year. Problem is you really have to do it full time and be high frequency. I mean, what’s the point of day trading if you earn a paltry 20%?
Greetings my friend, just wanted to let you know not to trade the forex market, watch my forex video and you’ll see it’s a scam.
I’m trading Oil now, if you haven’t tried it you may want to, it’s the best thing I personally have ever found, I’m able to trade it everyday and make money, and do so in a very precise way.
Sincerely,
David
30%year is 2.5% per month…0.083% per day…
wich with a 5.000$ means 4$ per day…i mean… cant u do that with your eyes closed ???
LOL…Yeah everyone wants to be the “Homerun King” Me singing…”I am the homerun king! I swing at just about everything! I am the Homerun King!” LOL That’s a poor way to invest. I agree totally with your statement.
That’s very inspirational news. I love to hear stuff like that. It motivates me to wanna become a better investor and possibly have the potential to be one of those successes that you just mentioned.
is there a link ?
so i can watch
check out Jacko on Forex Factory, he traded less than $3000 into $500 000 in 6 months and he did it live with a shitload of witnesses
” where does the profits come from??”
Your buying companies, Companies make profits and distribute dividends.
I know a trader who has made 150k GBP in 7 months in the UK.
hi david i have been watching all your videos and i have a question: if somebody has made a profitable trade somebody else had lost that same money, eventually the losing gay will get out of the market, so how traders can still make money in the long ran? where does the profits come from??
A solid trader can take a principle of $1000 risk capital and build that up to 2, 3, 4, 5. While, maintaining strict money management and tight risk per trade. Within 2 months. Instead of thinking about how much you can make with a small account size you should try and think about what you can realistically DO with a small account. Because you can’t maintain a small account and expect a year salary. But you can grow a small account, into a less smaller account, and, even into a big one.
from begging on the streets.
)
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like in baseball, always swinging for the home run “fences” which is unrealistic.
lol… 5000
Hi Dave, thank you for this video.
How do you calculate the Total compensation, $300,000 + $100,000 = $400,000? where does the extra $50,000 come from?
Traders are taught that the Holy Grail to Investing doesn’t exist. Real people were taught that all the planet’s move about the earth, don’t go to far out into the ocean(you’ll fall off the earth), on and on……….
When one looks outside the box(inventor), goes against the group(thinks for self), said they found(developed) something that is supposed to be impossible(airplanes), they were once killed. Now these people are called bad names and delegated to be unheard, and ignored group.
The ultimate business solution. The ability to cut the cost of any business expense, or just plain invest.
I developed multiple arbitrages that enable me to trade(not invest) in the finacial markets, without risk(The Holy Grail to Investing), or arbitrage that anyone can do. Over 30% a year.
Thomas Adair
thomasadair@live.com
What exactly do you mean when you say swinging for the fences?
Hi Dave, I’m new to your site and first I want to personally thank you from the bottom of my heart for putting your resources to work to educate the eager to learn fx market with your videos. It’s just to bad mrbuttes doesn’t understand fx trading plans and money management (the holy grail of investing) otherwise he could easily make a brain dead 30% a year return as you suggested in your reply, which I think is way to easy to make. I’ am so greatful for you and your site. THANK YOU!
Hello David, Just out of curiosity what do you think the minimum account size one would need if he wanted to try to make $100 a day trading in the forex market? ($50,000)?
Systems dont need to be changed. The trick is for a trader to develop a system with which he is compatible (Ed Seykota, Market Wizard)
I know can you believe that everyone voted for Barack instead of me? Best Regards, Dave
“…blow their account up.” ha ha! i wouldn’t be able to learn so much if this guy didn’t have such a good voice and steady speaking manner. Dave for President!
Hi Patrino, Thanks for the comment. The point that I am trying to make in the above video is not that traders should use a money manager, but that a potentially faster way to making money when starting with a small account, is to develop a sound strategy that follows sound money management and then raise money based on that trackrecord. Best Regards, Dave
I loved your blog article.Much thanks again. Great.
hey buddy,this is one of the best posts that I’ve ever seen; you may include some more ideas in the same theme. I’m still waiting for some interesting thoughts from your side in your next post.
Im thankful for the blog post.Really thank you! Really Great.
Hey, thanks for the post.Much thanks again. Really Great.
It was motivating. You seem very expert in your field.
Promote something of ‘value’ and you can even turn a promotion into ‘content’
I have heard the 90/10 rule works best, but the point is, whether its 80/20 or 90/10 or 75/25 doesn’t matter as much as how VALUABLE is the CONTENT you are delivering 
If you follow 99/1 and your 99% content is irrelavant, untimely, and just plain valueless to your readership, you really don’t have a 99/1 ratio 
good article , hope to see more about this subject.
good article , hope to see more about this subject.