I have been trading FX for a few years with satisfactory results (if I don't take into account the time spent on this) . I use leverage up to 1:10 , generally 1:2, 1:3. My goal is to make 30 % p.a. over the long term or more (more of course is always better). I checked out the perfomance of a number of so called Forex managers out there, and of systems with live money results on different FX websites, and there are quite a few of them making 5 % or so consistently every month. Many of the systems have less than 2 years in existence, I guess a lot eventually blow up , but some managers appear to have those results for 3 years or more . Of course I know it's possible to do it, but that "so many" are able to do it, doesn't look right, considering what real professional FX managers make (CTA, for ex.) . Recently I looked at 2 or 3 of those managers taking small accounts on the web and they were all making 3-5 % pretty much every month, with DD less than 10% and one of them had 4-5 sytems with that kind of performance ! So what so you think ?
put your head down and run your own edge game. you can easily get the same roi by ramping up the leverage over time on your own terms. disregard the rest of the smoke out there as it makes no difference what others do. s
I think it is very difficult to beat the long bond. In the end, that's what those that survive must do. If you can beat it, Goldman and JPM will be knocking on your door begging you to manage money for them. There was a time when my mother was beating it just by being long the S&P. As a matter of fact, over the last twenty years she has outperformed 80% of all professional money managers. If they are making 5% a month from now till the end of time, sign me up, that is more than I need. 5% a month is no big deal, some of us do it just by accident. Doing it month after month, year after year is more difficult. Sometimes it looks like 5% but you also have to look at that one month that was 120%. After that, everything evens out. Sometimes it's forex, sometimes it's commodities, sometimes it's stocks, sometimes it's bonds. If you can trade just one of them and beat the long bond you are doing well.
Yes if you want to succeed in forex then you should get your head up and trade with great planning and strategy. I think money management is also good for trades.