Trader Asks Why 10% Monthly Returns Are Considered Impossible; Should Good Traders Aim for Just 1%?
A trader on a Reddit forum questioned why making 10% per month in trading is often viewed as nearly impossible, especially for small accounts, and whether good traders should instead aim for 1% monthly returns. Experienced traders responded that the challenge is not achieving 10% in a single month, but doing so consistently while managing risk. Higher returns typically require greater risk, which can lead to large losses and capital depletion. Compounding math shows that 10% monthly returns would yield over 200% annually, leading to extraordinary wealth if sustainable. Some noted that small traders have an edge over hedge funds due to agility. The consensus emphasized that protecting capital and avoiding overtrading or excessive leverage is more important than chasing high returns.
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