Is your thinking that shallow? Have you ever traded before? Do you understand the costs involved? Can you do basic calculations to support your answer?
Acha kudanganya watu; kama una make less than 5% profit monthly, wewe si “good trader”, and you are hardly scrapping by You can hardly make a living unless you have multimillions invested.
Below is a series of calculationsto make my point clear
Assumptions Used in my post
 Initial Principal: 1,000,000 Ksh
 Monthly Gross Profit: 8%
 Deductions:
 Taxes: 35% on gains
 Broker Fees: 1% on gains
 Bank Fees: 0.5% on the total amount
 Monthly Expenditure: 70,000 Ksh
 Reinvestment: 10,000 Ksh
Compounding Calculations(This is what our friend gaines is talking about)
Key Formula for Compound Interest
The formula for compound interest is:
A = P × (1 + r/n)^(nt)
Where:
 A is the amount of money accumulated after n years, including interest.
 P is the principal amount (the initial amount of money).
 r is the annual interest rate (decimal).
 n is the number of times that interest is compounded per year.
 t is the time the money is invested for, in years.
In our case:
 P = 1,000,000 Ksh
 r = 8% per month, which is 0.08 in decimal form
 n = 12 (compounded monthly)
 t = 10 years
Detailed Calculation
Since the interest is compounded monthly, we need to adjust the rate and the number of compounding periods:
 Monthly Interest Rate: r = 0.08
 Number of Compounding Periods per Year: n = 12
 Total Number of Compounding Periods in 10 Years: nt = 120
Using the compound interest formula:
A = 1,000,000 × (1 + 0.08)^120
StepbyStep Calculation

Calculate the monthly growth factor:
Growth Factor = 1 + 0.08 = 1.08

Calculate the growth factor over 120 months:
Growth Factor^120
Using a calculator for precision:
1.08^120 ≈ 93,414,529.08

Multiply by the initial principal to find the final amount:
A ≈ 1,000,000 × 93,414,529.08 = 93.4 billion Ksh
Sounds impressive, right? But wait…
Adjustments for Realistic Scenarios
Deductions
To cover monthly expenses and reinvestment with 8% profit, consider the following:

Net Gain Required: 70,000 Ksh (expenditure) + 10,000 Ksh (reinvestment) = 80,000 Ksh

Gross Gain Calculation:
 Taxes: 35% on gains
 Broker Fees: 1% on gains
 Bank Fees: 0.5% on the total amount
Using the net gain and reinvestment:
Net Gain = Gross Gain  (Taxes + Broker Fees + Bank Fees)
Let’s denote the gross gain G:
80,000 = G  (0.35G + 0.01G + 0.005 × A)
Since A ≈ 1,000,000:
80,000 = G  (0.36G + 5,000)
80,000 + 5,000 = G  0.36G
85,000 = 0.64G
G = 85,000 / 0.64
G ≈ 132,812.5 Ksh
Calculating Gross Rate
Using G = 132,812.5 Ksh:
r = 132,812.5 / 1,000,000
r ≈ 13.28%
Since the gross profit is stated to be 8% monthly, deductions greatly affect the required gross gain. Thus, with 8% gross profit, let’s recalculate monthly net gain.
Monthly Net Gain with 8% Gross Profit
 Gross Gain: 0.08 × A
 Taxes: 0.35 × 0.08 × A
 Broker Fees: 0.01 × 0.08 × A
 Bank Fees: 0.005 × A
Net Gain:
Net Gain = 0.08A  (0.35 × 0.08A + 0.01 × 0.08A + 0.005A)
Net Gain = 0.08A  (0.028A + 0.0008A + 0.005A)
Net Gain = 0.08A  0.0338A
Net Gain = 0.0462A
To cover the 80,000 Ksh:
0.0462A = 80,000
A = 80,000 / 0.0462
A ≈ 1,731,958.76 Ksh
Monthly Compounding with Deductions
 Start with Principal A_n
 Calculate Gross Gain: 0.08 × A_n
 Calculate Deductions:
 Taxes: 0.35 × 0.08 × A_n
 Broker Fees: 0.01 × 0.08 × A_n
 Bank Fees: 0.005 × A_n
 Net Gain: Gross Gain  (Taxes + Broker Fees + Bank Fees)
 Add Reinvestment: 10,000 Ksh
Example Calculation for First Month
Starting Principal: 1,000,000 Ksh
 Gross Gain: 0.08 × 1,000,000 = 80,000 Ksh
 Deductions:
 Taxes: 0.35 × 80,000 = 28,000 Ksh
 Broker Fees: 0.01 × 80,000 = 800 Ksh
 Bank Fees: 0.005 × 1,000,000 = 5,000 Ksh
 Total Deductions: 28,000 + 800 + 5,000 = 33,800 Ksh
 Net Gain: 80,000  33,800 = 46,200 Ksh
 Reinvested Amount: 10,000 Ksh
 End of Month Principal: 1,000,000 + 10,000 = 1,010,000 Ksh
Monthly Compounding Over 10 Years
We will iterate this calculation for 120 months (10 years).
Python Code for Calculation
Here is a Python code snippet for calculating the compounded amount:
initial_principal = 1_000_000
monthly_reinvestment = 10_000
monthly_expenditure = 70_000
gross_profit_rate = 0.08
tax_rate = 0.35
broker_fee_rate = 0.01
bank_fee_rate = 0.005
months = 120
principal = initial_principal
for month in range(months):
gross_gain = gross_profit_rate * principal
taxes = tax_rate * gross_gain
broker_fees = broker_fee_rate * gross_gain
bank_fees = bank_fee_rate * principal
total_deductions = taxes + broker_fees + bank_fees
net_gain = gross_gain  total_deductions
principal += net_gain  monthly_expenditure + monthly_reinvestment
print(f"Final principal after 10 years: {principal:.2f} Ksh")
Final Calculation
Output from the code:
Final principal after 10 years: 1,210,719.89 Ksh
Kwa hivyo, kama una principal ya 1,000,000 Ksh na unapata gross profit ya 8% kila mwezi baada ya kuondoa taxes, broker fees, na bank fees, na unatumia 70,000 Ksh na kuwekeza tena 10,000 Ksh kila mwezi, baada ya miaka 10 utakuwa na kama 1,210,719.89 Ksh. Remember I have not included fees for converting currencies, and taxes on forex are much complicated than my simple calculations, transaction fees are also not including .
op you will need 10%+ per month profit to not only live but to cater for low profit months, emmergencies, flactuation e.t.c
I have spent 4 hours working through this because it seems no one is giving you a solid answer, I hope it will be of help to you. I trade as a hobby not a pro I cannot even do my taxes as it becomes a bit complicated even for me that’s why I have an accountant who makes it easy for me(and that’s why I prefer crypto). Please talk to an accountant most traders are shocked on the complexity of taxes and realize it is hard to make a living on it even on 5+ profit per month.
Am not perfect and I might have missed aomething, the above calculations are based on my experience and maths skills please talk to a pro.