Forex Trading is Profitable in 2021. How Much Can You Make Trading Forex?

Forex Trading is Profitable. This question may pop up in your head due to two main reasons.

One is that you trade for a while now but are having trouble finding the right path to profit. This makes this question come up in your head.

Or

If you are just starting to trade forex, you will search the internet to learn more about Forex trading.

You can do a quick Google search for this question and you will find that almost every trading forum, Reddit, and Q&A site such as quora has an engaging page about it – Is forex trading profitable?

Simply put:Forex trading can be profitable.

Yes, forex trading is profitable. However, you will not be able to consistently make a profit if your patience, discipline, and emotional stability are lacking.

Another degree I have is in psychology. This means that traders who are skilled in this area of trading will be more profitable.

 

Profitable forex trading is possible. However, it is important to remember that retail traders are at risk of losing between 90% and 95%. This means that only a few traders are likely to succeed.

According to the European Union’s ESMA regulation, around 70% of retail traders will not be successful in trading. This research was done in collaboration with five of the largest forex brokers.

is forex trading profitable - percentage loss of retail forex traders

The above chart shows that all five brokerages have similar data. It is therefore reasonable to assume that approximately 70% of retail forex traders lose money.

Because the percentage of losers is very similar, it can be assumed that traders are responsible for clients’ losses and not brokers.

Let’s keep these points in mind as we move on to the next step.

This article will be primarily focused on two main topics.

  1. What is the Maximum Earnings from Forex Trading?
  2. How to become a profitable Forex trader (especially for beginners)

But let’s first find out…

Forex trading is right for you?

This is a question that you should ask yourself. You know yourself better than anyone. Your emotional side is important.

Many trading Gurus will advise you to trade forex and enroll in their trading course. This will allow you to learn and become a consistent profitable forex trader.

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OR

 

Many of the best marketers will ask you to purchase their trading system so that you can make money even while you sleep.

You can read and view free content before you pay for it. There are many free content that is 100 times better than paid.

You can also open a demo account to trade for a while to get a feel for the market.

Keep This in MindMarket is a great teacher.

Here are some examples.Forex trading may be right for you..

You Like the Freedom That Comes Within the Trading Forex

You Like the Freedom That Comes Within the Trading Forex

Part-time traders can trade Forex markets. There are no market closings or opening times, so the potential for profit is unlimited.

You like being a risk taker and a risk manager

You Like Being a Risk Taker and a Risk Manager

Forex markets can be volatile so you need to be able manage some risk.

For example, before you enter the market, it is important to determine your stop-loss or take-profit levels. This will allow you to know what you are willing and able to lose, as well as how much you can expect to make from the market. This is known as the risk-to-reward ratio in forex trading.

To better protect your trading capital, it is important to have a solid risk and money management plan.

You are able to follow your trading plan and the rules of engagements with enough dedication and patience

You have Enough Dedication and Patients to Follow Your Trading Plan and You Trading Rules of Engagements

You must follow through on a trading plan if you want to make money. Also, be patient when opening/closing positions, depending on the rules of engagement.

Keep That in Mind– Determination, perseverance and devotion are the key ingredients to trading success.

You Want to Profit from the World’s Largest Financial Market and Its Volatility

You Want to Take the Advantage of the World Biggest Financial Market and Its Volatility

The Forex market has grown steadily over the past 20 years. It is undisputed.

The 2016 Triennial Central Bank Survey of Forex and Over-the-counter Derivatives Markets (OTCDM) from the BIS showed that foreign exchange trading averaged $5.1 trillion per hour in April 2016.

 

Traders have endless trading opportunities every day because of the forex market’s higher volume. You can profit from not only all of these trading opportunities, but also high-quality and more likely trading opportunities if you have the right trading strategy.

These are just a few of the many reasons why forex traders succeed. You might also be drawn to forex trading for one of these reasons.

However… If you fall under any of the categories listed below, there might be a lesser chance of making a success of it.

You can’t afford to lose your money if you trade with it

You Trade With Money You Can't Afford to Lose

Forex markets can be unpredictable so there are always risks of losing money.

This high level of risk means you must be cautious about how much you spend on your daily living expenses.

It’s easy to get started without investing time on learning about Forex trading

You're Willing to Start Right Away Without Investing Time on Learn About How to Trade Forex

Before you even consider trading, it is important to understand the basics of markets and their workings.

Forex trading may not be for you if you don’t have any trading experience or do not understand how markets work together.

It’s impossible to handle emotions ups and downs, especially when you lose trades

You Can't Handle Emotions Ups and Down Especially When Losing Trades

There are two outcomes when placing a trade: Win or Loss. Forex trading is not without its losers. It’s okay to lose trades, as long as your risk-to-reward ratio is reasonable.

Trading requires you to recognize when you are wrong and cut your losses quickly. Losers should be treated the same way as profitable trades. This is an essential skill that every trader should master.

You are risk-averse

Forex market volatility is higher and the market’s constantly changing. This creates endless trading opportunities that we can take advantage of every day. We can make huge profits by trading because there are so many options.

But…

Higher returns are always associated with greater risk. It is better to aim at higher Risk-to-Reward ratio than to seek higher returns.

These are the main factors that determine whether or not trading success is possible for you.

You may be asking yourself, “Is trading for me if I fall within one of these categories?”

No.You can overcome all four of these factors. Don’t worry.

But…

Forex trading is not for everyone.

This means you need to set realistic expectations.

Let’s briefly discuss this and then we will move onto the exciting part, which is how much traders could make.

Forex Trading Misconceptions

Forex trading can be intimidating for many people.

They believe they can learn trading strategies on the internet and be successful.

Worst of all, some beginner forex traders quit their jobs to trade forex after only two or three months of profit.

However, it isn’t as simple or straightforward as people portray in Instagram and Facebook.

After completing one or more profitable trades, anyone can claim to be an income-generating trader. The real challenge lies in:Are they able to keep doing it consistently?

This is the question that we must answer.

Don’t enter forex trading with a GET-RICH QUICK Scheme mindset.

Never believe anyone who tries to sell you your dreams. They may be good at marketing, but not forex trading.

Let’s now talk about the idea.Trade for a Living.

Trading for a Living: The Realities

Trading for a living is a great idea.

  1. You have freedom
  2. You are your boss
  3. You can choose a routine to work with
  4. Trades can be made anywhere, anytime.

These are some of the great benefits that forex trading can bring.

But

It is difficult when we look at the psychology side. Why?

Forex market is always moving. There are some months with good movements and others that show flat or unreadable movements.

This can also impact your trading strategy. There are red and green months. This is normal, as long as the year is completed in a profitable manner.

If your financial obligations are low, it’s OK to have an unprofitable monthly.

However, if you have financial obligations, unprofitable month are going to affect you differently. This could also impact your trading.

The end result? Your trading is effortless.We are less objective.

What is the answer?Here is where you can trade objects

My trading objective is to have a decent ROI each year (It ranges from 40% – 70%). As a rule, I only withdraw money from my trading account twice per year. This allows me to end the year objectively.

Think about it for a second: If all your financial liabilities depend on your trading income, how would you finish the year objectively?

You might now be wondering if trading for a living is possible.

Yes.It is possible, and I am living proof.

However, you cannot earn a living trading on a small account. You need to increase your trading capital, which requires a lot of hard work.

How much trading capital is required to earn a living trading?

Let’s get started.

What is the Average Earning of Traders?

This question is not easy to answer.

The performance of a trader and their trading capital are key factors in determining the income they earn.

Let’s look at an example.

Let’s say that “Trader A” has $10K USD in a trading account and makes about 50% annually. This means that Trader A will make $5K USD per year, which isn’t enough to support his family.

He will make a lot of money if he multiplies his return over ten years. Let’s look at moneychimp compound interest calculator.

how much do forex traders earn

You can see that he has turned $10K into $576K over a period of 10 years. That is a phenomenal gain! The trading capital of Trader A is now worth $576K.

We now know that Trader A makes around 50% ROI each year. If we take his trading capital, he will be able make $288K per annum, which is a great income. We can also live on this income.

You got it.

Trading is a long-term game. Trading is a long-term game. You can always increase your trading results year after year and still earn a decent return.

The first five to ten years are the ones where you work hard and stay patient as well as disciplined. Forex trading is a new source of income after those years. To achieve this, you must have a burning desire inside.

Next…

Let’s find out what makes you a successful forex trader.

How to become a professional Forex trader

Forex trading success is not an easy task. There are many ups and downs. It is not easy, but it will give you an extra push.

What then is it that makes us professional forex traders?

This knowledge is an additional tool that helps you expand your trading knowledge. However, it is not the only factor that will help you become a professional forex trader.

It’s theENGAGEMENT

Let me ask you one question. What can we do to make professional forex traders?

Answer: A trader is not an expert on financial, economic, and fundamental analysis.

Traders are a good thing.Someone who is skilled in managing and placing trades.It doesn’t matter how much he/she knows about the economy and financial markets.

The question is: How can we create this skill level? It’s simple.

Engage with the forex market.

This is the best way for a beginner forex trader to gain valuable experience in the forex market.

How can you create engagement? These are some steps to help you get started.

These are important things to remember. I’m not suggesting that you should be able to catch every movement or keep your trade screen open all day.

 

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