If you want to get 100% of return per month, you’ll need to risk a similar amount of money. And yes, you could get lucky the first few months, but sooner or later, the market will teach you that this is not a game and you’ll probably end up blowing up your entire account because you are risking too much.
Leverage and realistic expectations are tied together, because with higher leverage you’ll get better returns, provided that expected value of your system is positive. But what if it is negative? You guessed it, you’ll get larger losses too.
So, instead of trying to own the world on the first four years of your trading career, why not trying a more realistic approach:
growing your account steadily, risking a small percentage of your account per trade, using sound money and risk management techniques, handle each trade, being disciplined? From my point of view, this is how it’s done. It requires discipline, hard work, commitment, managing risk and capital, a sound strategy, to know yourself, control emotions, and more to make it possible. Yeah, it’s not easy (there is no free lunch), but listen, once consistent, it is probably the most rewarding job on the world.
At the end, I think articles such as the one you are reading, or the one on Reuters I mentioned above are good, not because of Forex being riskier than other markets, but because the better traders are educated about the risks involved using leverage, the better their possibilities to succeed in their task to become profitable traders.
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