One of the first questions beginner traders ask is can I make money from Forex trading or can I make money from investing. Before you start trading it is important that you have a clear picture of what realistic Forex profits are.
The answer to the question is Forex profitable, it turns out to be dependent on several factors such as the trader’s experience and skill, his trading style, the instrument chosen and practical matters such as the starting amount.
Moreover, the answer is strongly colored by your profit goals and expectations. If you want to make a living from Forex trading, the currency trading goals you pursue will be different from those of traders who see their Forex returns as extra pocket money.
- What is Forex Profit. How can you make money with Forex trading
- Forex Profits and Associated Risks
- Risk management to limit losses and maximize Forex returns
- The factors that affect Forex returns
- How Forex returns can differ depending on the level of the Forex trader
- How to determine what realistic forex trading earnings expectations are for you
- We also cover some practical tips that successful traders cite based on their Forex experiences as core elements if your goal is to make money with Forex.
Where most articles focus exclusively on the question of how can I make money with Forex or even how you can get rich with Forex trading, we will focus on:
Realistic Forex Profits – Forex Earnings Forecasts vs. real Forex experiences
First of all, let’s say that Forex experiences and so too Forex profits can vary greatly. We all know the stories of Forex traders starting with a small Forex starting amount and making significant Forex profits in no time. We are bombarded daily with advertisements with absurd claims about making money with Forex – Forex profits in the millions with a starting amount of EUR 100 or average Forex profits of 5000 per day, within 5 minutes.
If you have a trading account with a Forex starting amount of one million euros, making a Forex profit of ten thousand euros per month seems reasonable. This comes down to an average Forex profit percentage of 1%. However, most beginner Forex traders start with a much lower starting amount. Taking a starting capital of $ 1,000 as a starting point, a Forex trader income or Forex return of $ 1,000 per month seems like a less realistic profit target for the novice trader.
Of course, a Forex trader can build up a small trading account over time. However, when you start out with very high expectations of your average currency trading earnings or Forex returns, it can easily lead to over-trading and excessive risk-taking. If you look at some of the claims online they seem too good to be true. Most importantly, you understand that all Forex experiences are different and any currency trading gains are relative. Let’s take a look at how to determine what are realistic forex trading profits for you.
5% can be € 5 or € 5000. The average Forex gains or losses are related to this. This makes Forex trading attractive. Even though one starts with a relatively lower starting amount, over time one can build up the account and earn more money with Forex trading. One of the best tips for getting this far is to approximate Forex returns in percent. Perhaps the most important advice, however, is to start trading without focusing too much on goals such as getting rich Forex or earning a certain Forex trader income.