What Returns Traders Make On Their Money (The Truth!)
In this Forex trading vlog, I share 5 extracts from previous trader interviews on what returns traders make with their money. Here, I focus on experienced traders. Vlog #209.
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Interviews Mentioned
- Tony Sycamore: The Fascinating Story Of An Institutional Forex Trader
- Siam Kidd: Trading The Daily Chart & Building Multiple Streams Of Income
- Steve Patterson
- Troy Bombardia: Mastering Trading Fundamentals
- Mike Tedeschi: Grinding Daily Profits In The Market
I felt the need to do this compilation video as I see a lot of people having unrealistic expectations when it comes to the return they can make from day #1.
If you start with expectations of high return, you are very likely to waste time trying different systems and giving up when the system doesn't provide the returns you were expecting.
Not only that, but I see many new/aspiring full-time traders risking way too much on any single trade.
Those traders believe the only way to make a lot of money is to risk a lot…and they're kind of right. But they forget that more risk means a higher probability of failing at trading full-time.
As trader/author Brent Penfold says, you must “understand the risk-of-ruin, make it 0% & learn to be the best loser.”
As soon as your risk-of-ruin in trading is greater than 0%, you are adding the possibility of blowing up your account to the equation.
That should be a trader's #1 priority…to protect the capital.
Prop firm trader Samuel Leach even says that what he looks for in a trader aren't high returns. Instead, he is looking for a good “Return over Risk multiple”.
How is this video making you change your mind? Do you agree with the information shared by those traders? Comment below and let's keep discussing!
