Has anybody heard of 1700% + return in month before? I never even imagined it until today, but its a reality, at IBFX(forex broker) every month they have a contest for top performers, and they track the traders who register for the contest. It may be hard to believe but in november 2008 the top performer gained 1708% in just one month and dats not it every month the top performer averages 500-600%. All i can say is sky is the limit.
Robin, read the advice from rajatheroyal, he has perfectly hit the nail in right place. If I say on a $100 account I averaged nearly 500 pips a month with $5 per pip then I made $2500 ie 2500% returns.. how does it sounds wow!! isnt it? No, no because the very first trade I took was having a position size of 50,000 ie 500 times leverage and if this trade goes wrong against me I would have wiped my 100% of my account balance even with a stoploss of 20 pips ( very normal). Hey I dont have any money left to take my next shot but
who cares $100 is nothing for me. what I am trying to say is I have already accepted the risk and responsibility of loosing that amount. But if my account size was say $100,000, i will never risk more than 1% of it i.e $100 on a single trade. thats what my risk appetite is..
So, for argument sake any one can make this type of return, I myself have made it but have lost it whole in one single trade. No one should especially newbies focus on return prespective, I am afraid that is not this business about, everyone should develop the skills to survive in the business, to achieve consistency for a long period of time.
Every trade is having an outcome of win or loss, even the best best trade can go in loss.. to understand what is a best trade you must trade with your own edge for a period of time and soon you will realize which are those specific trades having a high wining probabilities. High probability of winning also means there is a leeway for loss.. take that into account.
One more thing which I would like to add,
newbies should only focus on number of points/pips/ticks we can make consistently even whilst demo trading not the precentage of money. Say to trade nifty futures then try to keep a record of how many points you can average every day/ every week/ every month/year... and for a certain period of time say 6mnths-1 years.. Believe it or not it will improve your trading by taking out the greed factor to a certain level as this approach was really helpful to me. The value of the points can be calculated based on your account size.