Tag: Forex Earnings

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Beginners Forex Education Forex Basic Strategies

How to Achieve Financial Freedom Through Forex

In this article, I will present a practical guide with the 3 key points to achieve financial freedom. This means that someone who does not follow these premises will not be able to reach it, but the odds of becoming financially independent are much higher considering everything I am going to tell you next. What […]

In this article, I will present a practical guide with the 3 key points to achieve financial freedom. This means that someone who does not follow these premises will not be able to reach it, but the odds of becoming financially independent are much higher considering everything I am going to tell you next. What […]

In this article, I will present a practical guide with the 3 key points to achieve financial freedom. This means that someone who does not follow these premises will not be able to reach it, but the odds of becoming financially independent are much higher considering everything I am going to tell you next.

What is Financial Freedom?

Financial freedom is to be able to spend your time in the way you prefer, whenever he receives a regular income that allows you to live well by bearing all your expenses without having to work to get a salary. That is, to invest money in certain assets until they generate a higher income than our expenses. That’s what we call financial freedom. This sounds very nice, and it’s also very easy to say, but we know it’s hard to get. Although not impossible…

Normally, people have a job, to which we dedicate about 40 hours a week or so, and for which we receive a salary that allows us to live. In this situation, it seems a utopia to be able to generate revenue on a regular basis without the need to exchange our time for money, but believe me, it is possible.

Why Should Financial Freedom Be Achieved?

It’s not an obligation. If you are completely happy working 8 hours a day and you would not like to do anything else during those 8 hours more than your tasks at work, and you think you will be able to continue working in the same until 65 years (minimum), you’re probably not interested in financial freedom.

Now, imagine that every month you were given an amount of money that allowed you to live well without the need to go to work. In that case, we can say that we are free financially, so if really what we want at that time is to work… Great!

The Fundamental Requirement for Financial Freedom

Most importantly, bearing in mind that if we do not meet this requirement we will not be able to achieve financial independence:

Have a powerful reason.

That is, to have a motivation that allows us to be constant until achieving our goal. It is very difficult to make a habit of any new behavior that we want to implement. On many occasions, if you have not yet reached financial freedom with your current habits, it will be necessary to develop new habits that allow you to reach them.

And if it is sometimes difficult to establish simple habits such as going to the gym one day a week to leave a good tipín for the summer, achieving financial independence is not something that is usually achieved within a few months of establishing some habits. This process takes years, but in my opinion, the reward gained and the duration of the subsequent gratification far outweigh the effort.

The question is…

And you, what are you willing to do to achieve financial freedom? In the end, the goal is not to achieve financial independence, the goal is to be very clear why we want to have free time to decide what to do with it. Spend more time with family? Children? Travel the world? There are thousands of reasons, but you must have a very powerful one that allows you not to give up on the road until you get it. Therefore, the first essential step if we want to achieve financial freedom is to find the main motivation that makes us wake up every morning convinced that we will work to achieve our goal.

Step 1: Calculate how much money you need.

It is very important to keep track of our income and expenses. In this way, we can know if we need 600€, 1500€ or 4000€ monthly to live well with all our needs met (not only the basic ones, we also have to go out with friends, go to dinner, travel, etc.). And not only that but surely a person with 25 years can live and save money with 1000€ per month but someone with 40 years, a mortgage and 3 children will obviously need more income to live well. That is why we need to consider not only how much money we need to live well today, but also in the future, and to do so we need to see what our expenditure might be in the future.

Step 2: Start generating profitability for your money

IMPORTANT: It is impossible to achieve financial freedom without investing our money. This needs to be clear. If we don’t want to invest our capital in any assets, we will never achieve financial freedom. The alternative to exchanging our time for money is to exchange our money for more money, if we are not condemned to work 40 hours a week until we retire.

It is true that sometimes this investment can start out small, and that there are thousands of assets in which to invest (open a business, invest in real estate, invest in vending machines, invest in the stock exchange, do trading…). I will assume that throughout my career as an investor I get an average of 12% annual return. This means that if I invest 1,000,000€ I would get an annual income of 120,000€. Or if I invest 400,000€ I would get an income of 48,000€ per year (on average), or what is the same, 4,000€ per month.

And how can I get that kind of money?

Imagine that my goal is to achieve financial freedom 20 years from now. If I start with an initial capital of €20,000, and I am able to save and invest €500 per month at 12%, within 20 years I will have achieved €496,543 (with inflation of 2.5% per year).

Step 3: Don’t start It’s already costing you too much

In the example we saw above, we can see that after investing 20,000€ + 500€ monthly would be able to reach almost 500,000€ in 20 years. Do you know what would happen if I waited a year to start? If instead of starting to invest today I waited 365 days more, in 20 years would no longer have 496.543€, but 445.657€. I mean, I lost 50,000€ just to start a year later. Doing exactly the same thing, let’s be clear. And what if with my current saving capacity I am unable to achieve Financial Freedom? In that case, a number of things need to be considered.

The first, although it may sound redundant, is that we need to be able to maximize our savings capacity, and for that, there are two options: either we reduce spending, or we increase revenue (or both).

Before you tell me that it is not possible to further reduce expenses, if you really have a strong motivation to achieve financial freedom, you must be in control of what you spend your money on. Only then will you be able to rethink and see clearly whether all your expenses are justified or there is some way you think you can save more at some point. Know what you spend on clothing, food, gasoline, vehicle maintenance, insurance, loans, leisure… 

And on the other hand… how do you increase income?

In the first case, if our main source of income is work, we have to think if we can materialize some task on our part that we can take to benefit the company in which we work so that a salary increase can be justified. Are you certainly being as productive as you can? Could you increase your productivity by making some changes to your work routine? Do you lose something by proposing a raise to your boss?

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Beginners Forex Education Forex Basics

How Much Can You Really Earn from Trading Forex?

How much can I make trading forex? This is a question that you hear quite a lot being thrown around or asked in various trading communities. The problem is that there isn’t a set answer for it. Forex is one of the most popular forms of trading and also one of the most profitable, most […]

How much can I make trading forex? This is a question that you hear quite a lot being thrown around or asked in various trading communities. The problem is that there isn’t a set answer for it. Forex is one of the most popular forms of trading and also one of the most profitable, most […]

How much can I make trading forex? This is a question that you hear quite a lot being thrown around or asked in various trading communities. The problem is that there isn’t a set answer for it. Forex is one of the most popular forms of trading and also one of the most profitable, most likely the reason why it became the most popular method in the first place. Forex trading takes place during the week, 24 hours a day which gives you a lot of opportunities to make some money. If you are here then you most likely know a little about the forex markets and how it works, but many simply just want to know how much they could potentially make, and so we are going to be looking into this, to try and work out what sorts of profits you will be able to bring in.

The problem is that there isn’t a simple answer. In fact, there are countless factors that will affect the amount of potential profits that you can make. Things like your account size, the risk management that you have in place, your trading strategy, and how much time that you have available to trade, these variables are different for each and every trader, so one answer won’t be the same for them all. There are no guarantees when it comes to profits, there are possibilities and probabilities, things that you need to take into consideration that will help to dictate how much you can make or more importantly, how much you can safely make. You also need to understand that you won’t make the same profits each month, it is variable, so you may be a profitable one, in a loss the next, or make $1000 one month and $3000 the next, there is no set income, all we can do is try to maximise the opportunities for profits.

Education

Have you ever tried to do something that people consider to be quite complicated and then get it perfect the first time? Probably not if you have, then there was most likely an element of luck involved in it. It is incredibly hard or in some cases completely impossible to make a successful career out of something that you understand very little of. You wouldn’t start installing a new boiler into your house if you had no idea about gas or water plumbing, it would most likely end in disaster if you did. The exact same thing can be said for forex trading, if you jump in with very little to no knowledge, then it will only end up as a disaster with you losing whatever money you had put in. It has happened to many people before and will continue to any other person that tries.

The forex markets are one of the most complex things to look at, with many different factors taking effect and influencing h movements, some within your control, but many more out of it. There are also a large number of ways that you are able to educate yourself about the markets and how they work. One of the most popular methods is by trial and error, it is, however, also one of the most costly, as each mistake has the potential to cost you money (unless you are sensible and using a demo account of course). This method involves you doing things, making trades, and then looking at the results, working out what worked and what did not, altering something, and trying again. It is easy to do but can take a booking time to master any form of trading this way, simply because you will be constantly making mistakes and adapting over a very long period of time.

There are also a number of different online learning platforms, websites that offer insights, information, and learning materials that you can use. Some of these sites are free and are a fantastic resource, giving you the basics of trading plus some ideas on different trading styles and strategies, well worth taking a look at, especially if you are not yet ready to jump in and make some actual trades. There are also paid websites, these often offer greater depth as well as some personal training, you must be wary of these sites though, they are often hidden behind a paywall with all sorts of marketing on top to make you want to jump in. Get some genuine reviews before you do, but if you find a good one, the amount of knowledge and information that you can get from them can really help to boost your initial trading knowledge.

There are also a number of different trading communities out there, these are places where different kinds of traders come to discuss their trades, their ideas, and what is going on within the forex markets. These are often fantastic places to receive feedback on your ideas, as well as to understand others’ viewpoints, which can give you a better insight into the markets and a viewpoint that you may not have otherwise considered. You need to remember though, that often the members of these sites are not experts and the majority are most likely in the same position as you, so use if your information and ideas, but do not consider what people say to be gospel.

Regardless of how you get your information, if you want to be a successful forex trader and to actually make a profit, you need to indulge yourself in information, you will never stop learning throughout your career, but the most vital point of education is the start, get a basic understanding before you trade, then build on that foundation as you go.

Discipline and Patience

Discipline and patience are probably two of the most vital traits that you can have as a trader and without them, you will be led down a road of bad trades and ultimately losses. Once you have gained some education and worked out a trading strategy, you would think that it would be a good idea to stick to what you have. Yet so many traders seem to forget this, an idea comes up in their head or they see someone is doing something and so they do that instead, going against what it is that they have been working towards, this ends up with a loss and another ross, not sticking to your plan is vital to your success.

Being patient and being disciplined allows you to wait for the correct moments to trade, sometimes there just aren’t opportunities, and if you want to make as much money as possible then you need to only take the opportunities that match what you have learned and what you strategy details, not doing this will lead to losses and ultimately will cause you to make less money or even a loss.

Starting Balance

Much like anything in the world, you need to have money in order to make money, the more you have the more you can make, it really is that simple, of course, you need to continue to use what we have mentioned above too. The higher your starting balance, the larger trade sixes you can make which will then lead to higher profits with each trade. If you start with an account balance of $100 then you won’t be able to make $1,000 a month, however, if your balance is $10,000 then it will be far easier and far more likely that you will be able to make $1,000 a month. Once your balance begins to grow, compounding will take effect and your profits will increase. However, it is important to remember that even with a large balance, you can still make very little or even a loss each month, so there is no guarantee that a large balance means large profits.

So the bottom line is that we are not able to accurately predict or guess how much you can make each month, it all comes down to the work that you put in, what you learn, your discipline, and how much you start your account with. If you are prepared to put in the work, to learn all that you can, to stay disciplined then you can certainly make a profit and become a profitable trader, however, we still can’t comment on exactly how much, that will be down to the work and the time that you put in.

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Forex Basics

Is the Effort of Forex Trading Actually Worth It?

This is quite a big question, yet it is one that you need to ask yourself before you jump into the world of trading. The forex markets are the biggest marketplace in the world and offer the most liquidity and profit potential anywhere in the world, but with all of that opportunity comes a cost, […]

This is quite a big question, yet it is one that you need to ask yourself before you jump into the world of trading. The forex markets are the biggest marketplace in the world and offer the most liquidity and profit potential anywhere in the world, but with all of that opportunity comes a cost, […]

This is quite a big question, yet it is one that you need to ask yourself before you jump into the world of trading. The forex markets are the biggest marketplace in the world and offer the most liquidity and profit potential anywhere in the world, but with all of that opportunity comes a cost, as there cannot be an opportunity with some form of risk. So if you have ever asked yourself questions like, “Is it worth trading?” or “Should I start trading?” this article will give you some insight into what trading is and whether or not it is worth taking it up as a hobby, or even as a potential future career.

To answer the question of whether or not it is worth being a forex trader is simple, the answer is yes, but it is also no. The answer to this question will depend entirely on who you ask and what their own experiences of trading have been. If you were to ask someone who had pulled in all their savings into trading and then lost, the answer will of course be no, they would advise you to run a mile, however,r if you were to ask a very successful trader for one of the multi-million dollar companies, then they will most likely say yes, simply based on their own experiences. So asking others won’t really give you a clear picture or idea as to whether or not you should be trading.

So we know that you will need to find out first hand whether it is right for you, but you first need to get an understanding of why you are thinking of being a trader in the first place. What is it that has made you think about trading? Are you looking to become rich quickly? Are you looking to make a little extra on the side of your job? Are you looking for a completely new career? Knowing this will give you an idea of what your aims are and whether trading will be able to offer what you want. Are you willing to learn? To spend hours and hours reading, analyzing, and practicing? If yes, then it may be something that you can work with. If you already think you know it all, or simply want to get rich overnight, then there may be a rude awakening when you actually begin to trade, overconfidence is one of the most dangerous emotions when it comes to forex trading.

What does it mean to be a forex trader?

Forex trading is all about buying and selling currencies, you try to buy low and sell high, that is all there is to it. Of course, it is a little more complicated than that. There are tonnes of variations to trading, multiple different account types, lot sizes, dozens of pairs to trade, each with its own influences and influences. With that, here are hundreds of different styles and strategies for trading, some of which you may have heard of, others you may never hear of no matter how much you trade. There’s so much variation and so many options that you should be able to find something that fits you well.

Trading can also be used to help diversify your portfolio, any investor will tell you not to put all of your eggs into a single basket, well trading and forex is an additional basket, and a potentially very good one to be involved in. It does provide the opportunity to change your career or to build a second income, but it won’t be easy.

Does forex make money?

Yes, that is the simple answer, but only if you are doing it properly. For every penny that you can make, you must also risk some, so those that come into it simply wanting to make a lot of money, will risk far too much and most likely lose it all, while those coming in with the expectation of a long term investment, over the period of years, will properly maintain their accounts and their risk and will then be on the right track to be profitable.

The problem is that we cannot actually tell you how much you will make, there are a lot of different factors which would influence this, your starting balance, the risk that you take, the market conditions, your strategy, and more. There are a lot of factors that will influence how profitable you are. If you think about it, make 5% to 10% per month for 10 years, you will be looking at a small fortune, but try to push that to 50% per month as an example, you will probably only last a month before you have lost it all, think long term, not instant profits.

One thing that you need to consider when looking at trading is the comparison to a normal career. With a normal job, you have stability, you know how much you will be bringing in or at least what the minimum amount will be, when it comes to trading there is no guarantee. In fact, you could even lose money in a month, the volatility is there, you can make a lot, and we mean a lot, but you can also not make anything, so if your current financial situation is quite tender, trading full time would not be a sensible option, however, doing on the side of a normal career job is certainly an option, and a good one at that.

Should I become a full-time trader?

Another question a lot of people ask, but they normally ask this one after having traded part-time for quite a while, there are however some exceptions who jump straight in and go full time. If You are thinking of going full time then there are a few considerations that you will need to take. Do you have enough capital to sustain things, if you have a bad month, two months, three months, will you still be able to survive? Are you currently making as much if not more than your actual job with your trading? Do you have the discipline to keep yourself on track when doing it full time? These are just some of the things that you need to consider, if your answer is no to any of them, then you should probably hold off going full time for the moment. You will also need to consider whether you actually enjoy trading, if you do then great, but many people find it boring to sit by the computer looking at graphs for hours on end, so if get easily bored, you may begin to struggle after a while.

What are the risks?

When there is the opportunity to make money, there is also a risk involved. When it comes to trading this risk can be pretty high, people have lost entire accounts on a single trade, others have lost an account over a longer more drawn-out time period of months or even years. This is why it is always stated that risk management is key. Risking 1% per trade as opposed to 10% per trade can save your account, the profits won’t be as high, but again, we are going for long-term profits rather than overnight riches. If you are planning on trading, then you will need to stay disciplined, create a risk management plan and then stick to it, as soon as you deviate, you are putting your account in danger. It is of course also possible to lose even when doing everything right, so you need to go into trading knowing that there is risk involved.

So let’s assume that you have decided that this is something that you want to do, how would you go about starting? The first thing that you want to do is to find somewhere to get a basic forex education, there are plenty of places out there in order to do this. You will then need to start reading and read a lot, there is an endless amount of information out there. You will also want to get yourself a demo account, somewhere where you can practice, if you have not got one yet, get one, it will give you an idea of what you need to do to place trades and a little insight into how the markets move, all valuable things to know. Once you have gained a bit of knowledge, put it to practice within the practice account, then eventually you will be ready to go live as a forex trader.

Categories
Forex Forex Basic Strategies

How To Earn $398 Per Day Trading Forex

How does earning $398 a day sound to you? Good right? Many of us can only wish that we will eventually make this much, for some it is a reality, but for most, it is a distant dream. Yet it is achievable, but the real question that you need to be asking yourself is whether […]

How does earning $398 a day sound to you? Good right? Many of us can only wish that we will eventually make this much, for some it is a reality, but for most, it is a distant dream. Yet it is achievable, but the real question that you need to be asking yourself is whether […]

How does earning $398 a day sound to you? Good right? Many of us can only wish that we will eventually make this much, for some it is a reality, but for most, it is a distant dream. Yet it is achievable, but the real question that you need to be asking yourself is whether or not you should be aiming for that amount, and what stage you are currently at. Yes, it is achievable and we will be looking at how you can achieve it, but also why you probably shouldn’t be aiming for something so high straight away.

Should You Aim High? 

Ultimately, yes you should be aiming that high, but you should not be aiming that high straight away. In fact, your first goals should be to simply be consistent or even profitable, those are good targets to aim for. If you think about your current trading and your current strategies, what level are you currently at? How much are you making? You will need quite a large balance and a lot of experience in order to make so much per day. Yes, it is certainly achievable, but it is achievable once you have a number of years of success under your belt. Aim high, but do not aim too high too fast.

Start Low

It is important that you start with more realistic targets, start thinking about simply being profitable, that should be your first goal and the first thing that you aim for. Even something like $10 a month is still a positive result and is still a good step in the right direction. Then once you achieve that, increase it, to $20, then $50, then %100, then start looking at weekly targets, $50 a week, $100 a week, and so forth. While many like to look at daily targets, we would actually advise against this, simply because it can force you to make mistakes or to trade when you shouldn’t, but we will look at that shortly.

Daily Targets

We mentioned earlier about daily targets, sometimes people like to set daily targets but we like to think that these can actually be quite dangerous. If you are trying to make a certain amount each day it can lead to over-trading or larger, more desperate trades. This is why we try to place longer-term trades, it takes away a lot of the pressure that you may be putting yourself under. So instead of placing daily targets, try placing a weekly one, this will mean that you can still have bad days and you won’t feel that you need to make additional trades just in order to meet your targets. Weekly or monthly targets are best, just don’t try and put yourself under too much pressure with large and short goals and targets.

It Takes Money to Earn Money

Let’s be honest, if you want to make a lot of money you are going to need a lot to begin with. Otherwise, you will be using ridiculous amounts of risks which could very easily lead to you blowing your account. If you want to be making $398 each and every day then you will either need to be placing some rather large trades or an awful lot of them, either way, you just can’t do this with a small balance, even with a balance of $10,000 you will most likely struggle to get near to this figure. So the simple fact is that if you want to make a lot of money you will need to have a lot of money in the first place. This does not however make the target unachievable, as it will just mean that you will need to build up your account balance first, start small but aim high.

Take Your Time

You need to remember that you aren’t actually in a rush to make his amount, yes we want to get there as quickly as possible but there is no reason to rush and no reason to put your account under any additional risks by trying to get there as quickly as possible. Instead, take things slowly, the markets aren’t going anywhere and so there is no rush to get to your targets as quickly as possible. Use the time it takes to get there to build up your account balance and to learn, learning is a never-ending endeavor within the trading world and so take your time, do not rush, and try learning a little bit extra along the way.

It can be very tempting to rush your way to achieving such a good target, making that much each day is a dream for many and it would allow them to quit their job and work from home. That amount could solve the majority of a lot of our money issues, but it is not something that you will achieve straight away. You need time and money to get to that stage, a lot of time and a lot of money. Set your goals high, but ensure that you do not rush and that you plan your journey there, do not put your account under risks that you do not need to.

Categories
Forex Basics

Is Forex Trading Profitable? Here’s the Truth…

The study of human neurology shows how reward increases the activity of dopamine neurotransmitters, which explains our cravings when we smell the coffee brewing in the morning or satisfaction upon completing a task. The same reward system has a tremendous impact on how we approach business ventures, which is why we often need to conceptualize […]

The study of human neurology shows how reward increases the activity of dopamine neurotransmitters, which explains our cravings when we smell the coffee brewing in the morning or satisfaction upon completing a task. The same reward system has a tremendous impact on how we approach business ventures, which is why we often need to conceptualize […]

The study of human neurology shows how reward increases the activity of dopamine neurotransmitters, which explains our cravings when we smell the coffee brewing in the morning or satisfaction upon completing a task. The same reward system has a tremendous impact on how we approach business ventures, which is why we often need to conceptualize the results of our efforts in advance.

The interest in the profitability of trading currencies in line with this human behavior and, while we may not always process this consciously, we can in fact help our motivation to take on new tasks, provided that exercise control and minimize the risks. Today, we are going to assess what the word profitable means in terms of numbers and how we can increase our return from trading currencies.

We all know how high the percentage of losses for the majority of traders, especially in the beginning. The reason for these unfortunate outcomes often lies in the fact that many only learn the basics (i.e. reading the chart, some essential terminology, and tools to predict where the price will go). Beginners hear some compelling success stories which make them believe that they will easily turn their initial investment of 500 USD into millions just by following the tricks they read online. Along with these assumptions, traders immediately expect to be able to quit their day jobs in a matter of a few years, which is why they further encumber their bank accounts with new loans right at the start of their trading careers. 

Unfortunately, once traders set up their systems and start trading real money, they frequently realize that the intermittent and inconsistent wins can hardly make up for the losses they are taking. This typical scenario is further affected by poor money management skills, in which so many beginners fail to invest because they are preoccupied with the idea of amassing a fortune overnight. Even more appalling circumstances involve the traders who, despite seeing how their predictions and moves are not leading to any gains, stay in those trades hoping for a positive turn of events. This deadly combination of factors offers an explanation for the staggeringly high failure rate in this market.

Many people cannot afford to blow out their accounts, and despite each trader’s starting point, we all need to change the perspective to properly measure profitability. To ensure a better start, beginners are advised to bury the hopes of their initial deposits being able to make any changes in terms of their financial stability. The first 500 USD investment simply cannot suffice for the projection many traders make for their future, yet they should still deposit this sum and keep going. It is absolutely crucial for any trader to become comfortable trading real money after having traded with a demo account for a while. Real, professional trading will allow you to learn how to manage your emotions and understand how market conditions will simply not allow you to get 20 pips each day as promised on some blog online.

So, finally, we come to the question of how much money one needs to make through trading currencies to be able to earn a living. First of all, very few people have the luxury of being able to invest the initial 500 USD and, after calculating the yearly return, you can see how you can use the amount of money you made in a year. Even though we all know about the impressive 20% return per year Warren Buffet makes, we need to maintain a realistic perspective and learn how to plan objectively.

Some of the most affluent figures in this market willingly give exorbitant amounts of money to their advisors just to get a 13% yearly return, which is certainly worth the effort in their case. Therefore, with a 100 thousand USD account, one can get a yearly profit of 20 thousand USD before tax with the extraordinary 20% return only a handful of professionals can obtain. This unfortunately does not do much for the vision of living off forex, as it realistically provides just a few thousand USD over the poverty line in the U.S.

Luckily, there is another way for any trader who is ready to commit to learning and offering consistent results year after year. Some experts shared how they had significantly less money than the above-mentioned 100 thousand USD, but managed to get hired by prop firms, hedge funds, and financial institutions to trade on their behalf and with their money. The requirement for this type of business deals is to develop a functioning system and showcase your consistent results. Even if you have only a demo account or a small trading account records, you can still find an individual willing to take a look at your achievement, provided that your results reflect the minimum span of one year.

Be ready to take these companies’ tests and expect to go through a probationary period where you will have to show them how well you can do in real-time. These companies keep a percentage of the profits traders make and they often require traders to set aside some amount of money as a form of protection in advance as well as cover certain fees. Even if you do not have a degree a great trading record can help you, as long as you are honest and straightforward with your numbers and achievements. 

If you have a proven high-functioning system, you can trade your own money and earn additional profit through another company, which enables you to trade professionally with minimum investment. As you can see, the only condition that you truly need to satisfy is to be legitimately good at trading currencies. Some prominent traders explain how, due to the lack of information, they needed a lot of time to accumulate knowledge and skills to be able to display their results to any company. Circumstances are much different now although traders keep making the same mistakes.

Success does not happen overnight, so instead of being hasty about what your future holds, overcome the instant gratification hurdles and compulsions and start slow. Rather keep your risk small in the beginning and learn how to trade steadily in the meantime. The investment you make can be minimal, as you can trade forex professionally regardless of where you get your results. Whether you invested your own money or used a demo account, you need convincing results owing to which you will be able to be noticed by a company willing to take traders to work for them. 

As you can see, the topic of profitability is a loose category and it mainly depends on what your lifestyle and aspirations are. Many countries in the world other than the United States offer entirely different living conditions and, what is more, you may not want to depend on trading currencies alone. Nonetheless, if you are willing to take the time to learn everything there is to know about this market, set up your algorithm, test it thoroughly, open a demo account, and understand your reactions and emotions, you have a great advantage that can open doors to unexpected ventures and outcomes, regardless of your starting point.

As a final piece of advice, the best way to achieve your objectives and see the lucrative side of the forex market is to not give up, withstanding any challenges with a clear goal and a sense of gradual development.

Categories
Forex Basics

How Much Do Forex Day Traders Really Earn? The Answer May Shock You!

Ever considered becoming a full-time trader? Ready to quit your day job? Many people dream about becoming a day trader, but most are too worried that they wouldn’t make enough money to walk away from their 9 to 5 jobs. Others might hear stories of day traders making insane amounts of money but assume that […]

Ever considered becoming a full-time trader? Ready to quit your day job? Many people dream about becoming a day trader, but most are too worried that they wouldn’t make enough money to walk away from their 9 to 5 jobs. Others might hear stories of day traders making insane amounts of money but assume that […]

Ever considered becoming a full-time trader? Ready to quit your day job? Many people dream about becoming a day trader, but most are too worried that they wouldn’t make enough money to walk away from their 9 to 5 jobs. Others might hear stories of day traders making insane amounts of money but assume that those are extreme cases. In this article, we will outline what makes day trading so appealing and explore how much one could actually make day trading.  

First, we’ll start off with the perks of day trading. One of the main draws is the ability to choose when one does and doesn’t work, although you’ll need to put in some weekday hours to make a profit. Many day traders start at the beginning of the day and close all their trades out before the end of the day, rather than allowing them to carry to the next trading day. Once all your trades have been closed for the day, you can sit back and relax without worrying about work. There are several other perks:

  • The government won’t tax your ‘paycheck’ because your profit will be made purely from trading. Of course, your broker will charge commission fees and spreads in addition to other potential fees for withdrawals. Still, this will probably come out to be far less than the tax cuts you’ll see with a regular paying job.
  • One of the things that make day trading so great is that you get to be your own boss. Gone are the days where you must play nice with a stressful boss standing over your shoulder. You can take breaks whenever you want or eat lunch while you work, you make your own rules. 
  • You get to work from home. There’s no need to get dressed, take a shower, or deal with a daily commute. You can work at home, in your pajamas, without having to socialize with anyone. 
  • Day traders don’t have to worry about overnight risks or swap fees because trading positions are closed on the same trading day. Other traders need to account for these charges. 
  • Full-time day traders have more time to focus on trading since they don’t have an actual job to worry about. You can spend more time analyzing charts and data, reading trading articles, and so on. There’s also more opportunity to practice strategies like scalping, which require a lot of attention. Part-time traders just don’t have the time to do all these things daily. 

If this sounds like a dream job, you’ll need to know that becoming a full-time trader takes work and dedication. Perhaps you’re already a part-time trader, or you might be starting from scratch. Either way, you’re in the right place. Becoming a day trader takes effort and you’re trying to figure out if it is worth your undivided attention. 

So, how much do day traders really make? First, you need to understand that there are risks involved with this kind of trading. It’s good to have a cushion to fall back on in case of a bad day. Prices fluctuate a lot on any given day and it’s always possible to lose money – this is where a regular job is better than day trading. Traders aren’t guaranteed to make the same amount every week because it isn’t as stable as working. Some professionals advise that you should never risk more than 1% on any trade and you should always use a stop loss to help minimize your losses. 

The amount that you make will depend on how much capital you invest. Someone who puts $5,000 into their trading account can make larger trades than someone with just $500, assuming both traders understand what they’re doing. If you don’t have a lot to start with, that’s ok, but you will want to invest more as your capital builds up over time to come away with enough profit to support yourself. Knowledge is another key to success with day trading – you can never do enough research, analyze enough charts, or get enough practice. Even the absolute best of traders can always learn something new, so be sure to take advantage of all the free resources available on the internet. A good strategy is essential for successful day trading, especially one that minimizes the losses one might make. 

Day trading takes time and determination, it isn’t a get rich quick scheme or something that will make you a millionaire overnight. It’s impossible to give an exact figure of how much you’ll make because factors like your starting capital and risk-management strategy will change those results. 

Here’s one example from an article written by day trader Cory Mitchell:

If you start with $30,000 capital and you make around 100 trades per month (about 5 trades a day over 20 days a month) you could make around $3,750 minus any commissions or other fees charged by your broker. You would walk away with something like $2,750 after all deductions are made. 

Keep in mind that this example revolves around a $30,000 beginning deposit. If you don’t have that much to invest, you’ll make less. Over time, the idea is that the trader would begin to bring in more profit and could therefore make larger trades and earn more per month. It would be a good idea to save up more before quitting your regular job so that you can invest more in the beginning. 

Day trading can be an excellent alternative to working a 9 to 5 job, and it comes with great benefits. Nothing beats being your own boss and setting your own hours. However, this isn’t something one can learn overnight. If it were easy, everyone would do it. Our best advice is to practice and educate yourself fully before even thinking of trading full-time. When you’re ready, make sure that you have a cushion to fall back on and consider your initial investment. Everyone needs a different amount of income to survive – so be sure that you will make enough money to support yourself or your family and to pay all your bills before becoming a full-time day trader. Try to have a safety net to fall back on in case you don’t make as much as you thought at first.

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Forex Risk Management

Ways to Keep Your FX Trade Earnings Consistent

Once you start making money as a forex trader, you’ll never want it to stop. Sadly, none of us are safe from trading fallout and you just might find yourself at the end of a string of losing trades if you aren’t careful. If you want to keep making profits consistently without falling victim to […]

Once you start making money as a forex trader, you’ll never want it to stop. Sadly, none of us are safe from trading fallout and you just might find yourself at the end of a string of losing trades if you aren’t careful. If you want to keep making profits consistently without falling victim to […]

Once you start making money as a forex trader, you’ll never want it to stop. Sadly, none of us are safe from trading fallout and you just might find yourself at the end of a string of losing trades if you aren’t careful. If you want to keep making profits consistently without falling victim to this problem, try following these tips:

Limit Your Losses

While we’re often thinking of how much money we could make on each trade, it’s more important to focus on avoiding losses. If you risk a lot on one trade, you might get lucky and profit, but you have to think of how much money you could lose as well. If you go risking 10% or more on each trade, you’re far more likely to blow your account. Think slow and steady rather than risking larger amounts as if you were gambling. When it comes to limiting these losses, different traders use different methods.

Using a stop loss is a common way to ensure that you don’t lose too much, but you’ll also want to think of your risk tolerance for each trade. You might prefer to risk a certain percentage of your account balance on each trade based on the trade’s risk to reward ratio. Everyone has their own risk tolerance, but you shouldn’t be risking large amounts of money on each trade you take. 

Know your Strategy

You can’t expect to keep consistent profits coming in if you don’t know the ins and outs of your chosen trading strategy. You’ll want to start by choosing a strategy that works for you depending on how much time you have available to trade and you’ll also need to ensure it isn’t too difficult. From there, you’ll need to figure out the strengths and weaknesses associated with your plan. 

Only Risk what you Can Afford to Lose!

You should never deposit money into your trading account that you can’t lose, so don’t even think of depositing money needed for necessities. You’re always hoping to make money, but you have to remember that there could be times when things don’t go in your favor. You’ll also want to think of how much you’re actually willing to lose on each trade, which goes hand in hand with our first tip that covers limiting your losses. 

Be Patient! 

Sometimes, you’ll just need to sit back and do nothing as a trader. Some struggle with this because they feel unproductive by doing nothing. Others are simply addicted to the rush of trading so they enter trades even when evidence doesn’t support those decisions. This can cause you to lose money and will certainly have a negative effect on your profits. 

Don’t Give Up!

The reason why most traders fail isn’t that trading is too hard, it’s because they give up too easily. One bad day, a few losses or a blown account are enough to send some traders packing for good because they decide that trading isn’t worth it or they just aren’t good at it. The truth is that the mistakes that caused those losses could have often been avoided, but many beginners just don’t put enough time into research and figuring out what they’re doing wrong. If you want to make consistent profits as a trader, you have to hang in there and work on any mistakes that are affecting your profits.