Your profitability in forex is a function of two factors:
- Your account size
- Your percentage returns
With this in mind, an individual with a $2,000 account should not expect to make as much as an individual with a $100,000 account.
Jack has a $10,000 trading account. Over the space of 1 month, he takes 6 trades according to his two forex strategies. 4 trades make money and 2 trades lose money. Overall, he returns 5% for the month.
A 5% return on $10,000 is $500 profit for the month.
As his account size grows, he may apply the same strategies while scaling up his market exposure with proportional risk management constraints intact.
With the same 6 trades, the 5% return on a $100,000 account would be $5,000 profit for the month.
There are indeed so-called "limits" on profitability.
- Account size. It is unlikely that you will compound an account into the billions while retaining enough liquidity in the market to flawlessly execute your technical-based strategies. Depending on your trading style and strategies, you may be required to adjust your approach as your account moves into 7 figures and beyond. As your account grows into a vast size, you must be resolved in accepting relatively lowering percentage returns.
- Percentage returns. Financial markets are very efficient. This means the window for finding a profitable edge opens less often than what most beginners realize. Always analyze your profit as a ratio against per-trade-risk. An individual who risks 2% per trade and makes 10% in a month is trading the same underlying edge as an individual who risks 1% per trade to make 5% in a month (5:1 edge). You should not expect to maintain more than a 6:1 edge per month as a long term average.