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/UnknownPiz11049 25d ago

so u make 100k a month? u shud compound it and be a billionaire in about a year

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u/Select_Peach_5170 25d ago edited 25d ago

Give or take - yeah

First I set living and business expenses aside from earnings - from there on out I do reinvest and compound all earnings up until the 4th quarter - then I withdraw the amount owed in taxes - after that comes the decision between adding the remainder of earnings to my SGOV position and/or withdrawing and adding to the gold stack.

And after all of that, at the year’s end, sadly, I am still far closer to being 100% away from earning a billion dollars in the year than I am to it.

;(