Many people are wondering if it is realistic to make money on Forex. Can trading become the main source of income? Some newcomers believe that it is impossible to make a profit in this area. Experienced traders are sure that you can increase your capital by many times. We’ve collected expert opinions and found out what happens in the Forex world.
Three Steps to Success
According to statistics, only 5% of people who come into trading make a profit. It is not very difficult to make a 20% profit per month, even for a beginner. However, it is difficult to get a stable profit and not lose all the invested funds.
The two most common reasons for draining a deposit are a lack of strategy and discipline problems. When a person comes into this sphere and makes several profitable deals — he has a false belief that he understands everything. In this regard, experts say that every newcomer inevitably passes these 3 stages:
- Losing money;
- Not losing money, but also not earning;
- Making a profit.
Most people stuck in the second stage and finally the majority leaves, deciding that making money on Forex is not realistic. Those who remain — start earning very fast.
How Much Do They Earn?
Unlike stable jobs with salaries, trading has a floating rate of return. Your earnings depend not only on the chosen strategy but also on the capital with which you enter the market. Most studies show that successful players earn about 3% — 5% per month of their capital.
3% — 5% seems to be a modest amount. But in total, this is 36% — 60% per annum, which is much more than any bank deposit. Let’s do a simple calculation:
- You want to make $1000 a month ($12 000 a year);
- The average income is 36% — 60% per annum;
- Therefore, you need to have $20 000- $33 000 on average in the account;
But this does not mean that you urgently need to apply for loans. You can find the options of trading without deposit.
There are “good” months when profits can reach up to 10-20%. There are also bad times when there is almost no movement in the market. It may be a good idea to trade the pairs with high volatility like gold. It can pass a few thousand or even tens of thousands of points per day. But you need to understand that with such pairs the risk of losing money is almost higher than the opportunity to earn. The more volatile the course, the more difficult it is to predict it.
It is realistic to make money on Forex, but you need to master not only financial skills but also how to control your emotions. A successful trader makes about 50% per annum. Big rewards are possible, but they are also associated with great risks. So, let your own choice be wise!