how much can you make trading forex

Forex is the largest financial market in the world. This international currency exchange attracts with the ability to generate significant profits quickly

Newcomers are attracted by the rapidly developing market Simplicity in analyzing and choosing an instrument, as well as providing financial leverage, have magnetic power.

It should also be noted that trading on the Forex market is conducted around the clock and is divided into trading sessions. And this is a great advantage for a speculator.

How much can I earn per month from Forex trading?

This is perhaps the very first question that everyone who is interested in Forex trading asks. And that's okay. When I started trading the stock market in 2012, I also wanted to know. But here we step on thin ice. Curiosity is natural. There is nothing wrong with asking questions, but you should always expect that the answer to the question posed can have serious consequences.

In this post, we will discuss what profit you can realistically expect when trading Forex and how to choose the right time frame to evaluate your trading results.

Forex illusions

Ever y new trader who comes to the exchange has a lot of illusions. Over time, these illusions turn into frustration, which causes most newbies to leave the exchange. They leave the market feeling resentful and empty pockets, never knowing how much a beginner can earn on Forex.

To prevent this from happening, you should know in advance what to expect and what to hope for when you come to the Forex exchange. This knowledge will help not to waste time on questionable experiments and to organize the curriculum correctly

The main misconceptions about Forex among beginners, and not only:

start trading with large amounts;
considering himself cunning and smart, to trade exclusively on intuition, without study;
take a training course and consider it a guarantee of success;
receiving bonuses to the account;
availability of economic or financial education;
I hope for quick profits;
earnings with the help of robots;
ease of the trader's work.

Forget what you were told before

Have you ever been persuaded to purchase a trading system or a super-profitable trading strategy that brings in 10% profit per month? What about 20% or 30% every month?

If you are one of the traders who are still waiting for guaranteed profits, still not understanding the potential of making money in the Forex market, forget about what you already know.

In this business, there are no guarantees. There are only opportunities and probabilities.

No matter how experienced a trader you are with a reliable and highly probable trading system, you will never receive 30%, 20% or even 10% profit every month.

Of course, you will have profitable months, but it is unrealistic to maintain this level of profit all the time. In my opinion, those who use a high percentage of trade profitability as a marketing mechanism are not acting entirely professionally and honestly. Sometimes, in order to move forward, you have to forget what you know. This is one of those situations.

Forex trading is a marathon, not a sprint. It's a slow, gradual process that requires a lot of discipline to succeed, and you can't make huge profits without the attendant (huge) risks.

But when someone offers a trading system that promises 30 percent income every month, they send you a ticking time bomb.

This leads me to an incredibly successful but somewhat unconventional way of thinking about earning opportunities.

Focus on the trading process itself, not on the potential profit

If you want to become a consistently earning trader, you must first focus on the process itself.

You cannot become a successful trader if you focus solely on how much money you can make each month. In fact, money is not a goal for many traders.

A professional trader is more concerned with how much money he can lose per month than earning. She knows that by protecting her trading capital and following her own handwritten trading plan , profits will come. This is the key to success.

The rider, when getting into the car, does not focus only on winning the race. Of course, this is a goal that inevitably penetrates into his mind, but he focuses primarily on the elements of driving: when to press the gas, when to brake, how to enter a corner more smoothly, etc. The little things matter. If a rider follows a good driving plan and strategy that he has practiced for years, victory is almost certain.

Trading in this matter is no different. Focusing on earning 50% a month won't give you a dime. It will get you out of this business quickly.

As a racer, you must focus on the trading process itself. Stick to risk management rules, wait for quality signals and do not trade on the news. Do these things well and the profit will come.

If you need to strive for a specific monetary goal .

It is clear that for many traders, learning to trade just for the love of art does not look attractive. Yes, some process-oriented people might like this. But, if you need to set a specific goal for yourself, here are some ideas on how to do it.

Be conservative.

You will not receive a 30% profit every month. If you stick to a set, low-risk exposure, then the profit will be relatively small. But it's good. There is nothing wrong with making a profit of 2% to 5% every month.

Of course, these will not be the funds on which you can subsist (this depends, of course, on the size of the deposit). But, if you strive to earn from 40% per month, there will be a risk of excessive trading and (or) trading with an increased amount of risk per transaction. These are very bad trading habits .

Set yourself more distant goals. Evaluate the result for a month or even a quarter.

Many traders set a goal to earn a certain amount of money (pips) per day or per week. The problem with weekly and daily goals is that you don't give yourself enough time and you are pushing yourself!

In fact, it is enough to take from 5 to 10 high-quality signals per month if you are trading on the daily timeframe. With one or two trades per week, you cannot measure the daily profitability. If setting a goal is so important to you, then let it be quarterly or annual. The main thing to remember is that the very procedure required to achieve profit is much more important than money.

Long-term perspective

The amount that you can make in the Forex market in the long term is practically unlimited. Since its opening in the seventies of the last century, Forex trading's daily turnover has grown from 5 billion to more than 5 trillion dollars, and experts are confidently talking about an increase in volumes.

I suspect this is also a problem. Everyone is in a rush to get some of that $ 5 trillion.

There is only one "but" ... The market promotes discipline. Those who have the patience to wait for quality signals and never take excessive risks are rewarded for being careful.

Start working on your 100 dollars deposit as if it were 100,000 dollars. Even assume you have one million and do all that you can to stop doubling every month's tentation.
After all, between 2% and 5% of $100,000 is in monthly benefit between $2,000 and $5,000.
And a deposit of 1 million dollars is between 20,000 dollars and 50,000 dollars a month

Of course, these are only hypothetical considerations. You will always have good months and bad months, no matter what experience you get.

These numbers may seem incredible. But many of the millionaire traders we read began with much less money.

One of the best forex traders, Bill Lipschutz, started at 12,000 dollars. With just $ 5,000, Ed Seikota began his career and Randy McKay began with $ 2,000. All three grew to millions of dollars, though they began with very little money.

If you want to separate yourself from 90% (and perhaps even 95%) of traders who are constantly losing money, you must think differently.

Most Forex investors over-trade and over-use their accounts in an effort to generate at least 30% profit per month.

To get into the top 5% to 10% of traders, you must do the opposite. You should focus on how much money you can lose, not how much you can make.

Remember, business advantage is more than just a strategy. Everyone can learn to trade based on price action or using other trading strategies. This is nothing special.

Also Read

What is a Forex account type?

How binary options work?

Fundamental analysis in Forex Trading

Vortex Indicator for BinaryOptions

How to make money on stocks?