Are you trading for some time, long time or you are just starting as a beginner in Forex and you wonder does anyone really make money on Forex? What is Forex truth on this Forex trading question about making money on the Forex?
Yes, there is someone who make money on Forex. And you would be surprised how many traders make money and how much money.
While Forex is the largest market for trading there is a lot of money that can be earned.
Now, I will not get to much into about Forex what is it and how it works but I will try to explain to you how traders make money. What you need to have like they have so you can also make money by trading Forex.
It is not easy, that is something you need to remember and if you want to really make money by trading Forex you need to change something.
You need to change yourself in a way that you will be patient, disciplined, resistant to emotions. You will need to learn a lot if you do not know how to trade, and acquire the right skills for trading.
Those characteristics you need to have because they are the main characteristics of the successful trader. The successful trader who really makes money by trading Forex.
- 1 How to Really Make Money On Forex
- 2 Make Money On Forex With Trading Strategy
- 3 Is it Possible to Really Make Money On Forex
- 4 Can Day Traders Really Make Money
- 5 How Much Traders Make by Trading Forex
- 6 Conclusion
- 7 FREE WORKSHOP
How to Really Make Money On Forex
Basic step to really make money by trading Forex is to know how to and when to open and close the order.
Order is the ticket in the Metatrader 4 trading station with which you define do you buy or sell certain currency pair.
When you BUY the currency pair you expect that the price of the pair will go UP. If it goes UP you will earn money. If it does not go UP you will lose money.
When you SELL the currency pair you expect that the price of the pair will go DOWN . If it goes DOWN you will earn money. If it does not go DOWN you will lose money.
It is simple task to do and to do it you need to know how to use the trading tools.
Make Money On Forex With Trading Strategy
To be profitable and that is by knowing when to open and close the order you need to know some things. Those things are how to make a trading strategy which consists of the trading plan and risk management plan.
Trading plan is the plan that consist of steps and rules, or checklist, that defines when to enter into the trade and when to exit from the trade. The rules are there to help you not to enter into trade with the wrong signal.
There are many wrong signals that looks like good one but rules and checklist is there to help you to pick the best one.
The risk management plan is there to help you define how much you will lose if the trade is not good. That is the loss you accept to lose and which will not impact your future trading. By that I mean you will not lose all the money which you need to continue trading.
The risk management plan is there to help you define how much money you will gain on each trade. You need to plan when you will exit from the trade because profitable trade will not be infinitely profitable.
When you acquire trading station and trading strategy you will be ready to earn money. With the right tools and profitable trading strategy you will see that it is possible to make money by trading Forex.
Is it Possible to Really Make Money On Forex
It is possible to really make money by trading Forex if you have the right tools. When you are equipped with the right tools the only obstacle from being profitable is the time or initial money you will deposit.
You need time to trade and to earn money. If you want to earn a lot of money you will need a lot of time because you cannot get rich over night.
If you want to earn a lot of money faster you need to have enough money as initial balance. With large initial balance you can look for profit from 1% to 5% per trade which will give you a lot of money.
Imagine having $100,000 as initial balance and if you are hunting for 1% – 5% on each trade that will be $1,000 – $5,000. And that amount is really nice in a period of a day, a week or a month. That period depends on you and your trading strategy.
Forex market allows you to earn money like any other market. Stock market allows you to earn money by investing in companies. If the company is profitable you will earn money. If the market price of the company rises you will earn money.
So, the Forex market is not more different than stock market. There are rules you need to follow and you will make money by trading Forex.
By trading Forex you can earn money, small amount or large amount and the only one who can stop you reaching that goal is you.
Make Money by Having Money for Trading Forex
Forex is no different than other markets because you need money to earn money. You need to invest the money so you can open the trade.
You will find some broker offers as a free bonus when you open new account or when you make a deposit on the new account. The broker knows that you need to have money so they lure you to invest your money to start trading.
By having money on your trading account you can make money by trading Forex. With small amount you can start trading and earning. With small amount on your trading account you can expect to earn small amount of money but it is possible to earn a lot if you are lucky.
But, one important thing you need to remember is that that small amount of money on your trading account is not good choice. Reason is because you need to have money so your losing trade can breath. If the price moves against you it can reverse eventually, but if you do not have money on your account to sustain that reversal you will be closed with loss.
Having good starting capital you ensure that your trade where the price does not move immediately in your direction have enough space to reverse without being closed with loss.
Read more: How Much Money do You Need to Start Forex Trading
Make Money On Forex With Discipline
Make money on Forex with discipline is one of the most crucial things you can do as a trader. If you do not have discipline you cannot make money.
Now, do the ones who really make money by trading Forex have discipline in their trading? Absolutely yes.
The trader that really make money by trading Forex must be disciplined or he will not sustain to much in the Forex market. Without discipline he does not follow the rules set by trading strategy and risk management plan.
Discipline does not allow trader to get away from the right path. It forces him to follow trading plan with the checklist.
By doing that the trader makes good results that was predicted by the trading strategy.
If you find profitable trader and no profitable trader you an ask them are they disciplined. Or you can ask them how do they open the trades.
Do they follow certain steps and rules when looking for the trade and when they find them do they follow rules how to open the trade. If the trader says that he looks on the chart for trading signal and when he thinks that the trade signal could be good one without checking the steps and rules to determine is it good trading signal, you can know that the trader is not disciplined.
Ask any professional trader, Forex or stock trader, is discipline necessary to really earn money by trading Forex, you will get same answer. YES.
Make Money With Patience
Being disciplined also means being patient in order to really make money on Forex. Patience makes you master of waiting for the perfect trading signal.
Imagine waiting in the bush like real hunter for your prey to show up. You sit there, without making noise, widely open eyes, breathing lightly waiting for your trigger.
When you do it like that you are acting as a professional trader who do really make money by trading Forex. It is characteristic of a good trader.
The trader who earn money by trading Forex knows that the trading signal appears but not all the time. When it appears it brings a lot of money.
Now, when you think about the trader that waits for the trading signal you ask your self how long do they wait.
Some traders waits for the trading signal for the whole month. When he enters into that trade he earns more money then he would make with 10 or 20 trades per month.
You need to understand that you need to be patient and wait for the so called A+++ trading signal. With the A+++ trading signal you really can make money by trading Forex.
Can Day Traders Really Make Money
So, if you are a day trader where you look for daily trading signal you really can make money by trading Forex.
What is different from the A+++ trading signal which appears once or twice per month with the trading signal that appears throughout the day?
The difference lies in the trading strategy. Trading strategy defines the rules when and how to enter into trade.
If the trading signal is by the book then the day trader enters into the trade.
Why would you wait for the whole month for the A+++ signal if you can be day trader and make money by day trading? During the day there are A+++ signals which can be very rewarding.
There is difference between day trader and the trader that waits for the whole month until the trading signal appears. No one says that they both cannot be profitable and make money by trading Forex.
Day trader spends more time in front of the screen. Waits and checks for the trading signal.
By doing that he needs to have time to do it, he needs to be emotionally stable, psychically prepared, mentally prepared.
Day trading demands more energy and you need to devote your time finding the correct signal.
The trader that looks for few traders per month he needs less time doing the analysis. He spends few days per month looking on the larger time frame.
You will find different type of traders who make money by trading Forex. All of them have similar characteristics if they are profitable. Scalping, day trading, swing trading, they are similar and they all can make money by trading Forex.
How Much Traders Make by Trading Forex
If they are profitable and they really make money by trading Forex, day trading or swing trading, the questions is how much they make?
This question is not easy to answer because I do not know how much do they have on their trading account and how large percentage are they hunting on each trade.
But, I will try to answer to you as close as possible so you get the picture of the amounts you can expect by trading Forex.
Each profitable trader have percentage % amount he looks on each trade for. The percentage is somewhere between 3-10%.
If they see during the trade is being open, that the trade can bring more money, they will move take profit level to the next possible level. They will let the profitable trade run and that way they can make more than 3-10%.
Institutional traders who have large capital they are hunting for 5-15% per year. They have millions which brings lots of profit with small percentage. That is the reason why they do not hunt for to much percentage on monthly basis.
For the small traders, like me, where I have $1,000, $5,000 or $10,000, the monthly goal is to get 3-6% which gives me $300-$600 on $10,000 account. That amount is just fine as a side income.
For the even smaller traders that have $100 or $500 account balance the monthly goal is to reach 50% or 100%. For them it is really hard to achieve that goal because it is not easy to earn such large amount. Mostly they lose all what they have because of over trading, over sizing and trading without stop loss.
You can see the amounts the trader can earn. Also you see that the trader with small initial balance tends to make 100% per month which is not impossible but it is to hard.
What you should take from this part of the post is that you need to have capital to look for small percentage that will give you enough money that you are satisfied. You can now define how much money you would like to earn by using 3-6% of gain on each trade.
It is not easy to see someone make money by trading Forex and you still ask yourself is it SCAM, is it profitable, do you gamble by trading Forex.
Swing trader or day trader really make money by trading Forex. It is just matter of trading strategy, person the trader.
If you have the correct tools, trading strategy, know how to manage the risk, being emotionally stable, disciplined, patient, you can make money by trading Forex.
If you have day job 9 to 5 you can make money by trading Forex.
Read more: How to be Profitable Part-Time Trader With 9 to 5 Job
It all comes down to your desire to learn new things and acquiring new skills. Do not envy on those who do really make money, do not be greedy when you earn money and do not fear being a trader by trading on the Forex market.
For beginners who does not know how and where to start with trading
In the workshop I will tell you
what steps to do in order
to transform yourself into a trader