Wednesday, April 6, 2011

Q: What kind of returns should I expect from trading?

Q: What kind of returns should I expect from trading?

A: Risk is always commensurate with reward. If you are trying to "get rich quick," the high risks you will have to assume will probably break you. Commodity trading is not inherently risky. It is only as risky as you want to make it. Most people bust out because they can't control themselves and the urge to gamble. A disciplined person trading a solid, trend-following system with sufficient capital to diversify can reasonably expect consistent returns of 25 to 50 percent a year with drawdowns of 15 to 30 percent.

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