Have you seen or known a trader whose trading performance meets the following criteria (serious platform):
1. The maximum drawdown of funds is less than 30%;
2. Achieved profitability for two consecutive years;
3. The yield curve rises steadily.
Searching on Myfxbook using the first and second criteria as search criteria, only 5 trading accounts (decent platforms) met the criteria. There are only 5 accounts, and the account with the best performance has made a profit of 75% in two years, and the profit is not stable. None of these five accounts were for billing.
Many traders around the world link their accounts to Myfxbook. One is to facilitate the statistics and analysis of their trading performance, and some hope that someone will follow their transactions to obtain commission income. We often see people boasting on trading forums and QQ groups that they have earned 20%, 30% or even doubled every month and every quarter. Once you ask her/him to link the account to Myfxbook and disclose their trading records, they will use various reasons to reject you.
I don't doubt that there are people who make money and become rich through foreign exchange trading, but it must be a very small number of people, and people with a lot of money. If your account is $10,000, to be honest, more than 95% of small retail investors have far less funds in their accounts. Assuming you do a good job and can make a stable profit of 30% a year, you only earn a pitiful $3,000 a year, and you will not become rich. Believe it or not, according to the above search results, 99% of people can't make a stable profit of 30% every year.
Does this mean that small retail investors with little capital should give up completely and stay away from the foreign exchange market? I never think so, if you don't have a lot of money, you should change your mind, stop fantasizing about getting rich with very little money. You can think of forex trading as a hobby. Even consider trading as a way of learning, at least you will read financial news, read professional financial books, learn history, philosophy, psychology, etc. It's better than playing mahjong and drinking until midnight.
If you want to get rich, you should start a business, start a company like Bezos, and then go public to cash out. Of course, it doesn't mean that you can't make money with a small account, and you may earn some utility and internet fees. It's just that you have to lose some unrealistic fantasies, you can't turn thousands of dollars into millions.
This short article may shatter some people's dreams, but that's the way it is.
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