Several fresh and newcomer Foreign Exchange business people may enter market with wrong expectations of profits. This will lead to trading which are irresponsible and may even cause and will usually place the traders in a wrong or virtual mind frame.
Any way I will start by saying that best global Hedge Funds profit comes around 20% per year. Yes, only 20% annually. If you don’t trust me, then just go through the following link and you will be given all details.
http://www.eurekahedge.com/news/08_june_EH_May08_Absolute_Return_A_Comparative_Review_of_Recent_Hedge_Fund_Performance.asp
And now are we discussing about the professional people and the analysts with higher access to information.
Still, the internet comprise of 100% and plus returns annually. There is no wonder why new business people dream of getting wealthy in a couple of days or months.
But the thoughts of this kind can make an account alive. Thus newer traders should realize that any of the given method can only result in a particular rate of return. And this is achieved through forward testing of the strategy for about 6 months. In fact, I could say from my experience that even the best methods can’t exceed 15 to 25% return in a year.
I have been utilizing my strategy for several years now. And that’s why I know better that in the negative months, I have lost pips of around 50-100 where as in the positive months I got pips around 150 to 250.
This aided me much not to get into overtrading as my expectations of profit are in accordance with my method. If I was suspecting 600 pips per month, and my method produce monthly around 200 pips then I may overtrade in order to attain extra pips. But the thing is instead of gaining more; I will always used to suffer losses from the attempt of overtrading.
Furthermore, if you expect huge profits of Forex, then no doubt you may fell as a prey to scammers that will predict you to the world. This means that always the realistic expectations and dreams would serve as a best means of defense.
I really apologize if I have busted any here, but it is of course crucial to enter Forex world with realistic anticipations. This will definitely protect you from heart break and make you a good trader at last.
