38. Profit Expectations: What Millionaire Traders Know
January 31st, 2010 | 
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http://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 $10,000 or under expecting to make enough money to support themselves from their trading profits within a short period of time. After seeing all of the hype that is out there surrounding most trading education, trading signal services, etc it is no wonder that people think this is a reasonable goal, but that does not make it a realistic one.
As most any truly successful trader will tell you, the stock market has averaged somewhere in the neighborhood of 10% a year over the last 100 years. What this basically means is that if you would have invested in the 30 stocks that make up the Dow Jones Industrial Average, the index which is designed to represent the overall market, you would have earned about 10% on your money on average over the last 100 years. With this in mind, what most any truly successful trader will also tell you, is that if you can consistently double that return, on average, over the long term, then you will be considered among the best traders out there.
Duration : 0:5:58
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In my view, 20% per …
In my view, 20% per year is the minimum return of any profitable trader, otherwise there’s really no point – why risk drawdown when you can get 10% in an index fund – set and forget? I wouldn’t say its the “top” of traders. Second, there are enough stories of traders who can double and triple their accounts in under a year. Problem is you really have to do it full time and be high frequency. I mean, what’s the point of day trading if you earn a paltry 20%?
Greetings my friend …
Greetings my friend, just wanted to let you know not to trade the forex market, watch my forex video and you’ll see it’s a scam.
I’m trading Oil now, if you haven’t tried it you may want to, it’s the best thing I personally have ever found, I’m able to trade it everyday and make money, and do so in a very precise way.
Sincerely,
David
30%year is 2.5% per …
30%year is 2.5% per month…0.083% per day…
wich with a 5.000$ means 4$ per day…i mean… cant u do that with your eyes closed ???
LOL…Yeah everyone …
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 …
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 ?
…
is there a link ?
so i can watch
check out Jacko on …
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 …
” where does the profits come from??”
Your buying companies, Companies make profits and distribute dividends.
I know a trader who …
I know a trader who has made 150k GBP in 7 months in the UK.
hi david i have …
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 …
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 …
)
from begging on the streets.
Nice try. Keep it …
Nice try. Keep it up check out esteembpo + com for social media marketing. jitoyj