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How much money can you make trading forex?

 article about how much money can you earn from trading forex
2018-11-06 03:02:41
I have seen too many people asking that question - how much can I earn by trading currencies, by trading forex? And as many of you might have assumed, there is no definitive answer, but let us look into it.

But before we move on to the calculations to see forex earning potential, you do need to keep in mind that 90% of traders end up losing money trading forex. Why? There are five main reasons for that.

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Poor money management

People tend of forget all about proper money management. Yet, it's very important. You deposit an X amount and then you risk it all with each trade you do. It's bad for your capital, it's bad physiologically (especially if the trade is going the wrong way), it's simply bad. You shouldn't risk more than 1 or 2% of your trading capital on any one trade. And another thing about money management - you shouldn't trade with money you can't afford to lose. That might be even more important than anything else. As trading forex is extremely risky.

Greed

That's part of the money management problem - you risk too much of your capital because you want to earn more. And then some more. And maybe some more. Or you don't exit the trade with a decent profit but set your trailing stops even further away, although you might have earned a good amount with a trade already. Sometimes it's better idea to exit the trade with a good profit than to hope to get even higher profit, ending up only earning peanuts.

Stop-losses

Always have stop losses. Even if they are high, always set your stop loss for each and every trade!

Lack of discipline

You might have all the knowledge in the world to make good trades, but if you don't stick to what you know, if you don't have the discipline to stick to what you know you should do, you'll end up going broke.

Lack of knowledge

Before you start trading for amounts that matter, learn, learn trading. Learn. Learn. And then learn some more.

Now that we've got the important things out of the way, how much can you earn with forex?

How much money can you make trading forex?

For most of the professional traders, the average Forex monthly return trading forex is between 1 to 10 percent. So the professionals try to be on the safe side. If you trade with small amounts like $100, then earning 1 0 10 percent a month doesn't sound anywhere near enough. However, imagine having an account balance of $10,000 account and earning 10% profit a month from that amount. You'd make $1000 a month in the beginning but by end of year 5, assuming you haven't made any withdrawals, you'd have around $3 million due to the cumulative amounts. And this return can theoretically be achieved with by just risking 1 percent of your capital on each trade. Or when we talk about lots and leverage. One percent of $10 000 is $100. One lot size in forex is $100 000. Let's say you have a broker which offers you leverage of 1:500. So you can trade uo to 0.5 lots at a time. Although trading 0.1 lots at a time might be a safer bet.

You can actually also double your money with just one trade. In forex it is more than possible. However, that assumes risking all of your money, which is a rather stupid move.

So while trading forex is dangerous, it does have potential. Even without risking too much at a time.

If you want to test your skills trading forex, you can sign up here, make a deposit with Bitcoin and Litecoin ans start trading in minutes (after the deposit has arrived).




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