Update May 2016: Fxkeys.com have re-branded themselves into LuckScout.com. Different name, same junk.
I’ll go through another article which I find is extremely dangerous for beginners. Not only because it gives them false hopes and a false image of what trading really is, but also because it sets the stage for a lot of unnecessary frustration and heartache. Most people dream of multiplying their accounts and making huge amounts of money when they start trading. Fueling those dreams with falsehoods and fantasy world spreadsheets, all done from behind the appearance of a successful, professional trader is very wrong, if not illegal.
This is your greed that doesn’t let you sit and calculate and see how much money you could make if you just would be patient and happy with a small amount of profit every month and what account size you would need to become rich in a short time. I have done this for you. … So, if you start with a $1000 account and you make only 25% profit every month and you don’t withdraw any money for 24 months, you will have a $211,758.24 account and you can make $52,939.56 per month after 24 months or two years. – FxKeys
After bashing the ridiculous, out of this world idea of doubling or tripling your account every week, he comes with this so-called ‘small amount of profit’ of 25% per month. Can you spot the sleight-of-hand here? If 100% weekly is indeed absurd, it doesn’t automatically make ‘only’ 25% every month a conservative, easy to achieve the target. To any serious trader, it’s just as preposterous and instantly exposes those who trot out such calculations as the jokers they really are.
I’m not saying that 25% per month is unachievable. There are months when more than that can be made and years when more than 300% can be achieved. There are several traders who have verified performance like that, Mark Minervini or Peter Brandt just to name a couple. What I am saying is that you need tremendous skill together with a favorable market environment to achieve those kinds of returns. You can’t just put in a spreadsheet your initial trading account balance and ‘only’ 25% monthly profit and get bleary-eyed of how rich you’ll be in 2 years. That’s ridiculous.
Right there you can see the second most common wet dream of beginners. Close to a 100% success rate. I urge you to read one of my previous articles where I talked about this. Most real traders have success rates of around 50% or lower. These are traders managing millions or billions of dollars with documented track-records going back decades.
To conclude, be very careful where you get your trading information from. Use your common sense and always double check everything. If something sounds too good to be true (like growing your account from $1k to $200k in 2 years) it most probably is.