That is a common question, and I will answer it in this post.
It depends on the risk you want to take. The Forex market is just a tool that you use risk to make money. We can compare it to a casino Roulette game. How much money can you make on the Roulette? So, it depends on how you are going to play it.
Let’s consider three situations.
First, you bet all your ten coins in one number. The probability of gaining is very low, but if the ball lands in that number, you will make a lot of money. In that case, you have only one chance since you chose to bet all your ten coins. And because of that, your risk is also very high.
In the second scenario, you bet only one of your ten coins in one number. The probability of winning is still very low, but you increase it since you have ten rounds. But if you win, you will not make the same money if you had chosen to bet all ten coins in one number.
In the last scenario, you bet one of your ten coins in the black or red numbers. In that case, you increase your probability of winning since you have ten rounds, and the possible results are black and red numbers. You will probably win some rounds. In that case, you will not gain a lot of money if you lose, and you won’t make a lot of money if you win.
In the Forex market, it is possible to use the same principles. You can use parameters that can break your account in only one trade. On the other hand, you can choose less risky settings.
To give you a number, I would say that something about 2% to 5% monthly is a realistic estimative. For those who are unfamiliar with investments, 5% is a significant number. You can simulate a long-term (more than ten years) investment with a 5% monthly rate on our calculator, and you will see how incredible 5% monthly is.
I would like to remember that those numbers are the average gain during a long trade period. You probably find people arguing that they can make 5% or 10% daily! But it is not a real number. It is possible just for some rounds, like the high rollers in the casino. To achieve that number, one needs to use a high-risk strategy that, at some point, will break the account. It is a mathematical reality that nobody can escape.
One thing I like the most about copy trading is that the investors need to show their real gain to be copied. It is different from a dude in a YouTube video using a Rolex in a sports car, saying they became a millionaire in a few weeks.
If you are interested in knowing real strategies that are performing well consistently, look at our posts.
You must never forget that performance is associated with risk and past performance is no guarantee of future results.