Can You Make Money In Forex
Happy Friday! This week’s question comes from Martin, who asks: How much money can I make per month trading Forex? Admit it, this is one of the first questions you asked when you entered the Forex market. There’s no shame in it. I certainly wanted to know how much I could make when I started with equities in 2002. The thing is, it’s a slippery slope. Curiosity is natural.
While there’s no harm in asking questions, the answer you receive—and whether or not you dwell on it—can have serious consequences. In today’s post we’re going to discuss how much is too much profit, the proper time horizon for measuring returns, and an alternative method that has served me well. Ready to do this? Forget What You’ve Been Told (or Sold) Has someone ever tried to convince you to buy their trading system that promises 10% profit per month? How about 20% or 30% every month? If you have, feel free to a leave a comment below. I would love to hear from you.
How Much Money Can I Make Forex Day Trading? - Final Word This simple risk-controlled strategy indicates that with a 55% win rate, and making more on winners than is lost on losers, it's possible to attain returns north of 20% per month forex day trading.
In case you’re one of those traders and are still confused about the earning potential in the Forex market, forget what you’ve learned thus far. There are no guarantees in this business, only possibilities and probabilities.
No matter how good you are, you won’t make 30%, 20% or even 10% profit every month. Sure, you’ll have a great month now and then, but sustaining those types of gains is not realistic.
In my opinion, the people using these kinds of profits as a selling mechanism give this business a bad name. Sometimes in order to move forward, you have to forget what you think you know. Signal index binary options. This is one of those situations. If you have dreams of, think again. The business of trading is a marathon, not a sprint. It’s a slow incremental process that requires a ton of discipline to succeed, and you can’t have massive profits without the associated risks. So when someone offers you a system that produces 30% profit every month, they are handing you a ticking time bomb.
This brings me to an extremely effective, but somewhat unconventional, way of thinking about earning potential. Put the Trading Process Before Profits If you want to become a consistently profitable trader, you must focus on the process first. I can’t stress this enough. No trader has ever become successful by focusing solely on how much money he or she can make each month. In fact, many traders don’t even have such a goal.
I’m more concerned with in a given month than how much I can make. I know that if I protect my capital and follow the process I’ve laid out for myself, profits will follow. That’s the key here.
A race car driver doesn’t hop into their car and focus on nothing but winning the race. Sure, that’s the goal and it inevitably crosses their mind, but their focus is primarily on details like when to brake, how early or late to take each turn, and when to punch the accelerator. They know that it’s the small things that make the difference. If they adhere to the process of good driving that they’ve practiced for years, the win is all but guaranteed. Trading is no different. Focusing on making 50% profit per month won’t make you a dime.
It will, however, put you out of business in a hurry. Just like the race car driver, you should. Keep your bets small, wait for quality setups. These are a few of the steps of this process that you should focus on.
Can You Make Money Forex Trading Reddit
Do these things well consistently and the profits will find you. If You Must Aim for a Monetary Goal. Binary options brokers that accept us traders. I get it, striving to master a process isn’t appealing to a lot of people. Personally, I enjoy it. But then I’ve always been a process-oriented person.
If you must set a monetary goal, here are a couple of ideas to consider: Keep it conservative. You aren’t going to make 30% profit every month. If you’re keeping your bets small, which you should, then your gains will also be relatively small. But that’s a good thing.
Can You Consistently Make Money In Forex
There’s nothing wrong with aiming for just 2% to 5% each month. In fact, I think that’s a good place to be.
This isn’t a goal you want to knock out of the park. If you’re aiming for 5% profit per month and you make 40% instead, chances are you over-traded or overleveraged your account, or both. Neither of these are habits you want to feed. Make it a monthly goal or higher. The problem with weekly and daily goals is that you aren’t giving yourself enough time. You may only get five to ten quality setups each month if trading the daily time frame.