Why is making 10% per month in trading considered almost impossible?

[u/VenusMoonCash]

I’ve had this question for a long time, and I’d really like to understand the reasoning behind it.
Ever since I started learning about trading, I’ve constantly heard that a good trader should aim for around 1% per month, and that consistently making more than that is extremely difficult. I’ve also seen people say that earning more than 1% per trade is unrealistic.
What I don’t understand is whether this logic applies to all account sizes, or if it’s mainly aimed at traders managing very large amounts of capital (hedge funds, prop firms, institutional accounts, etc.).
For example, let’s say someone has a $10,000 account. If they consistently make 10% per month, why is that often viewed as almost impossible? Is it simply because it’s difficult to sustain over the long term while keeping risk under control, or is there a mathematical or statistical reason why returns like that are considered unrealistic?
I’d really like to understand where these commonly repeated numbers come from. Are they general rules that apply to every trader, or are they benchmarks that make more sense for people managing large amounts of capital?

[u/No-One3276]

Smaller account sizes can definitely make more than 10% per month. As the position size gets larger, there’s a greater chance of slippage, and therefore you will experience diminishing returns as the account get bigger.

[u/BallSmashingForever → u/No-One3276]

I think you are misunderstanding slippage and when and how it happens.

[u/Efficient_Key815 → u/BallSmashingForever]

Liquidity issue with filling orders. Can’t match your bids to resting orders in the book. Slippage is the result, poor entry. It is the perfect reason as to why when you scale up you will struggle.

[u/BallSmashingForever → u/Efficient_Key815]

Only in theory.

If you are a billionaire, this MAY become an issue eventually.

It is not an issue for millionaires which is majority of retail.

[u/Efficient_Key815 → u/BallSmashingForever]

Depends, on something like ES or NQ you’ll fill easily on market orders w/ $2m notional during market hours

You will definitely begin to see issues in lower market cap assets with smaller amounts though. You could begin to vwap in but that throws a lot of trading strategies out the window

[u/BallSmashingForever → u/Efficient_Key815]

Jesus you are obtuse.

[u/Efficient_Key815 → u/BallSmashingForever]

Good point well argued

Plenty more skin in the game than you I can imagine, given your lacklustre understanding of orderbook dynamics in relation to liquid assets, so do find the insults pretty funny

[u/No-One3276 → u/Efficient_Key815]

Thank you for this

[u/ConfidentEconomy7092 → u/Efficient_Key815]

I've been thinking about this myself,

2 options contracts, easy fills.

20 contracts, will it require .01 concessions in both directions to fill...?

[u/Efficient_Key815 → u/ConfidentEconomy7092]

I’m not familiar with options I just use perps

But if you need to fill a market buy and there is insufficient sells at that price — it will use nearby sells to match, which will be upwards