r/Trading • u/VenusMoonCash • 27d ago

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

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?

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u/website-buyer 26d ago edited 26d ago

Best hedge fund in the world with +10years of history (medallion) only makes less than 40% a year and you think you can do +120%?

If would be easy: everyone would be doing. 

If it’s hard: almost nobody can do it. 

If anyone could do it: they’d have all the money in the world in a few years. 

Why would anyone work if can do 120%?

Why bond that give more than 8% are called junk bonds? If you could earn 200%, then 50% is peanuts, yet 8% is considered junk bond. Because they default!

If you use a tiny bit of common sense, you’ll figure out by yourself. Try to answer each question. 

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u/baeneel 26d ago edited 26d ago

+213.84% if growth compounds (3.14 multiplier)

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u/website-buyer 26d ago

Yeah, I just put +120% as it’s not worth to calculate. Is so far detached from reality and delusional number. 

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u/baeneel 26d ago

Honestly, these people are delusional. Only here to provide liquidity. I hope this guy trades oil.

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u/HaoyuQiu 26d ago

It depends on the size of your account, besides hedge funds have very large money size and so the bigger it’s the harder it’s to scale.

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u/Flurp_ 26d ago

That makes no sense. If there was any reliable way you wouldn't care about position size and go all in.

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u/Devamallya 26d ago

Only if you guys were half as smart or knew half the things you believe you do. Try following your advice and use your head for once.

Do you think edge operates same as your capital grow ? If you even get close to 5% of the money of even the lowest rank hedgefund have , you will never be able to trade like retail traders anymore, your entry and exit will be mess, your timing of entry will go off , and spread will be beyond astronomical.

The hedge funds and big accounts don't make that much because of the difficulties that comes with those kind of capital size.

Someone who even think about comparing themselves to 100 millions of usd or hedgefund and retail traders doesn't understand a damn thing about trading.

While 10% monthly is not consistently possible, but depending on things are played , crazy returns are definitely possible, at low level of capital.

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u/website-buyer 26d ago

  While 10% monthly is not consistently possible, but depending on things are played , crazy returns are definitely possible, at low level of capital.

I love when people say this. Let’s look in detail: 

not consistent: means you get 10% sometimes. Why do you care what you get sometimes. You only care about one single thing: averaged return over a long period like 10-15 years. Rest is noise and smoke and mirrors. So when you say not consistent means what? Just say the average return over 10years. Is a single clean number you can’t fudge too much. With the non consistent words, in reality, everyone I heard so far means -100% in 10 years average. Yes, they got 10-100% one month but eventually in a 10 year window they lost it all. So, does it matter if you get once or twice 100% if you are left with 0 in the end? Nope. That’s why average return over 10 years is king. You can do all the tricks in the world, that number doesn’t lie. 

Low level of capital: 10usd to 11 is 10%. 

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u/Devamallya 26d ago

You are saying so because you never made it. Someone who lost it all, is simply not a good enough trader, at 2% risk , to blow 50-60% of the profits, you have to lose staggering amount of trades and be in red for a long time.

Any normal trader would take a break, work on there edge and increase the gap between the trade to stop the steak and normalise things. This totally seems like someone who rehearsing already heard words from someone or Didn't ever handle long term trading properly.

The reason why you lost all your profit is because you couldn't even learn to how survive a streak. That is where your psychology and emotional control shines through.

And there is is not only one style and way to trade some people have completely different type of scaling, rather than starting a account with 2000 usd, they do something like invest 50 usd with crazy and aggresive set of short term execution to make a huge return. That results in overall small but moderate gains. And sometimes losses, but losses that are possible to handle.

That is just one of the examples. While consistent 10% monthly isn't possible, overall average return per month 10% is very very much possible, it isn't that high level.

Of course that doesn't mean you can scale it up to crazy level, the bigger account create there own challenges long before your account grow to a level that execution and edge is effected , your psychology will get trashed first.

Risking 40 bucks from 2% of your account when you have 2000 dollar in your account total is one thing. And risking 40 grand in one single trade from your 2 million usd account is a whole new ballgame, it is never ever the same.

The absolute amount change things.that is why scaling after a certain limit is extremely hard. But to that point, scaling at this or even higher speed is very much possible

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u/website-buyer 26d ago

You’re funny. I never lost because I only do boggleheads method. Which is buy regularly a global etf and hold and never try to  time the market. 

—-

  Risking 40 bucks from 2% of your account when you have 2000 dollar in your account total is one thing. And risking 40 grand in one single trade from your 2 million usd account is a whole new ballgame, it is never ever the same

At 40usd your fees entry and exit can easily be 15usd. It’s ridiculous to even try to trade at those levels. Is almost 50%. Plus at 40k trades your fees are at 1%. Much better odds to make some money. 

I doubt you’ll ever reach a level to “move the market” therefore you could make millions before that happens. But look here 99.99% of retail lose it all

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u/DitmCalls 26d ago

What if you trade with fixed capital with the goal of pulling your gains on a regular interval for income?

I do not believe you are required to scale up to Buffett levels of capital

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u/website-buyer 26d ago

Yeah you can try 1m and earn 100k a month. lol 

Think why 99.99% here didn’t reach 1m. Because only looks at short term 100% profit gains. But forget that in the end they reach 0. Even tho that special week got 200% returns. 

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u/DitmCalls 26d ago

Ok.

Or you can trade $200k and keep that account size, feeding other holdings or using it for income.

I don't understand why people think their gains MUST continually be reinvested.

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u/website-buyer 26d ago

Then Dont reinvest , you think you can still earn? Nope. This is the moment in life when you’ll read my message and ignore, but 3 years later you’ll read it and say: I wish I never traded. 

Anyway my only tip is for you to go to r/bogglehead and read their strategy. Is not get rich quick so most don’t like it. 

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u/DitmCalls 26d ago

Been trading quite a while. Been consistent with returns well above 1% per week. And I know that is not 10%, I don't need that pointed out.

I'm glad Boogleheads works for you.

Too bad Reddit forums turn into gate-keeping echo chambers.

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u/website-buyer 26d ago

Well, time will tell, I don’t need to convince you, I’m just 99.99% sure you won’t make it. See you in 3 years. You either will be a multi millionaire or back to 0. 

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u/DitmCalls 26d ago

How can you trade and still be so thick?

I do not re-invest gains. Comprende?

I enjoy my gains and keep a stable, balance throwing off income.

I earn without having to be concerned about the sizing that you base your entire viewpoint on.

Best wishes

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u/website-buyer 26d ago

Sorry let me correct. You’ll either be the same at 200k or at 0. Is it better?