Let’s face reality, this is a question traders and potential traders want to know–“How much money can I make trading the FOREX market?” Some traders want an outstanding whooping 200% ROI on their investment, while some want a consistent 30% ROI on monthly basis for a long trading span. Obviously there is a massive range of income potential when it comes to trading FOREX. It is quite possible that some will still need to work another job, but manage to a pull a little money of the market each month through day trading. There are those who can live comfortably on what they make day trading, and there is the small percentage that make a lot.
Actually the FOREX market is the largest financial market in the world with a trading volume not less than 5 trillion dollars everyday. This provides an ample opportunity for investors to rake in cool dollars month in month out from the markets. However the degree of knowledge and skill determines how much each investor would be able to make. Some investors can make above 100% of their capital while some would opt for lesser percentage return on their investment due to taming their greed emotion. I can not say specifically this is how much one can make but all i know is FOREX returns are boundless regardless to ones investment. What separates FOREX from every kind of other business is there are both buyers and sellers in the market always waiting to transact business.
Currency traders are a bit of a rare breed. What they make can vary widely depending on what type of trader they are and how much experience they have. In general, how much money you make depends on what currencies you trade, what leverage you use, and how much capital you have and finally how much lot size or volume you use in trading. In currency trading, your level of income depends solely on you which is why FOREX trading is one of the most lucrative business in the world. You don’t need a promotion from your boss like a regular civil servant who has to wait for the company to increase his salary. All you need to step up your income is at the grasp of your hands.
FOREX trading is a source of financial empowerment that generates boundless income depending on the Lot size a trader is using. The level of risk will determine the level of returns. Realistically what you make is up to you because the currency market is risky, and it’s not for everyone. At the same time the currency market is very profitable. It takes a trader that can take an honest look at themselves and learn from their mistakes which is all based on managing risks and emotions. Forex is fairly risky, whether you are trading high or low risk, the amount of trading you can do will always depend on how much money you have to trade with.
With a well-constructed trading strategy and by following all the rules of money management, the average yield of a trader may be from 5% to 80-100% a month.This variation is associated with the different trading features of each trader and the market conditions. Profit is strongly linked to the amount of the deposit. If the profit volume is small, it is likely that the trader missed many potentially profitable trades, so it is necessary to use more cautious trading tactics. A larger deposit amount allows committing trades with higher reliability, where reliability results in better transactions and thus higher profit. Personally i always recommend a target of 30-50% ROI for traders, with this approach the next thing is to apply compounding principle.
Lets say for example i start with a $1,000 investment and aiming to make just 25% ROI every month. This will be my account balance after 1 year of trading activity.
PRIMARY ACCOUNT SIZE PROFIT PER MONTH% MONTHS: BALANCE: MONTHLY PROFIT:
$1,000 25.0% 1st $1,250.00 $250
2nd $ 1,562.50 $312.50
3rd $ 1,953.13 $390.63
4th $2,441.41 $488.28
5th $3,051.76 $610.35
6th $3,814.70 $762.94
7th $4,768.37 $953.67
8th $5,960.46 $1,192.09
9th $7,450.58 $,1490.12
10th $9,313.23 $1,862.65
11th $11,641.53 $2,328.31
1 year $14,551.92 $3,637.98
It is unbelievable, isn’t it? But it is true. You could never imagine that a $1000 account could be changed to such a huge wealth. Please note that to make such an income, you don’t have to triple your account every month. You should only make 25% per month which is possible. Now try it with different amounts of primary account size and the same 25% profit per month. You will realize how much money can be made trading the FOREX market.