To share the skin of an unkilled bear is a favorite occupation of many newcomers in any business, regardless of whether it is an adventure, real work or organization of their own business. Forex trading in this case is no exception. And many newbies who are just learning about this method of earning are immediately interested in how much you can earn when trading Forex.
Of course, on the one hand, this is a well-grounded desire, because it’s foolish to start trading or take any steps if you don’t even know about what level of profitability you should expect. On the other hand, Forex is a very risky, but highly profitable tool, the earnings on which are difficult to predict, since it can fluctuate in extremely wide limits and depends on too many different factors.
Many are trying to find out how much money can be made on Forex in absolute terms. In this case, the search for answers among friends, on professional resources in the network or in ad units can lead you astray. So, among friends there will certainly be some kind of amateur who earns $ 20 a month, and professionals will declare thousands of earnings in foreign currency per week, not to mention advertisements, one of the main goals of which is to attract traders, and therefore the level potential earnings, which they stated, are often extremely overestimated.
To understand the entire flow of information, we advise you to pay attention to the following points:
– Earnings on Forex in absolute terms depends on the size of your trading capital. – Trading on the international currency market through brokers is carried out according to the credit principle, when the broker (margin) issued by you, the broker provides a certain amount of money to buy or sell a lot on Forex. The greater the leverage, the greater can be the earnings in absolute terms, even with a smaller amount of collateral, but the greater are the risks. – The indicator of earnings on Forex is the percentage ratio of the profits to the value of your capital, while comparing and evaluating the absolute values of income is not reasonable, because a trader with a capital of 100 thousand dollars has far greater opportunities for earning than a novice trader with a hundred dollars in the account.
How much can a trader really make by trading Forex?
Please note that the earnings of a trader and an amateur when trading on Forex also should not be compared. To obtain objective information on price movement, analysis of a large number of factors is necessary, therefore, often teams of traders and analysts working on trading systems work through certain entry and exit schemes, carry out risk management, and so on. Naturally, such companies are looking for investors and sponsors, and therefore have at their disposal more capital and greater opportunities for maneuvering in the financial market.
Typically, the profit of professionals is calculated in the range of 5-10% per month, for the year earnings can range from 60 to 100%, which is explained by the presence of subsidence in any trade, even a team of professionals. Such numbers are considered very good, and it is rather difficult to exceed them if you do not trade too aggressively and open trades with tremendously high risks.
Naturally, beginners make Forex significantly less. As a rule, with a successful start, the profit per month is calculated in the range of 2-5%, although for some it can reach tens of percent, but this rather indicates that trade is too aggressive and leads to a “drain” of capital already in the first or second month trade. The annual profit for successful newbies is estimated at 20-40% per annum, and these figures are very attractive to start trading, because they make it possible to earn significant amounts with an impressive start-up capital.
The possibility of large earnings at Forex attracts to this market a large number of people who want to discover new opportunities for themselves and receive impressive incomes. But at the same time, you should always remember about the high risks and the need for having your own trading system, which would allow not only to earn income, but also to be confident in its stability in the long term.