If you can make a STEADY 5% a month....in my mind you are good.
Yes, indeed you are, if you can achieve it while observing proper money management.
For an experienced and disciplined trader, making 5-10% a month is realistic, too.
And what is more, it'll make you rather wealthy rather quickly.My favourite example to show the power of compounding profits:
Start a small trading account with USD 10,000.00.
Make 10% profit per month and compound, i.e. do not withdraw anything.
After one year your account balance will be USD 31,384.28.
After two years your balance will be USD 98,497.33.
After three years the balance of your trading account will be USD 309,126.81.
After four years your balance will be USD 970,172.34.
After five years your account balance will be USD 3,044,816.40.
Of course, it will not work out like that in reality, for three reasons:
1. There will be months in which you won't reach your 10% target; you may even have a string of 'WTF???-weeks'
(hehe), resulting in a drawdown of 10% or more.
2. Once you've reached a certain account size, placing orders (and having them promptly filled) may pose a problem. This can be solved by choosing the right broker or by simply running several accounts with various brokers.
3. Tax you'll have to pay will eat into your profits (but only after
you've withdrawn, if you're smart).
That's beside the point anyway.
The important (and fascinating) thing is that there is absolutely no need to make 10% a day (or 50% a week or whatever) to get a good living out of forex.
With enough experience, a lot of discipline and a little bit of luck (always useful, hehe) one can turn ten thousand bucks into three million within five to seven years ... and it's not all that hard.Compounding
is the magic word.
Albert Einstein, who definitely wasn't a dummy, allegedly called compounding 'the mightiest force in the universe', and while he referred to energy compounding, not money, the principle is still valid.