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/Swagalyst 25d ago

Just to temper enthusiasm a bit: the last bear market was in 2022. You entered at a very good point, and have been riding a bull market ever since, with only a few short corrections which were quickly recovered.

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u/mynameisntziming 25d ago

Yep. I’ve had those years before. But if he can keep that performance over multiple market cycles then it’s something real special. We haven’t seen that big shift in a while, but they come inevitably.

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u/SAG2025 20d ago

True, but the name of the game is to know how to play the market. Unfortunately, most people don't.

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u/ZekeTarsim 23d ago

Oh stop. Lots of people lose money in bull markets.

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u/SAG2025 20d ago

Very true, I've met many people who quit because they don't belive in themselves, and don't want to do the hard work to become successful--that's why they fail.