Key takeaways on realistic Forex returns
So, how much do Forex traders make? Well, that depends on how much they deposit and how often they trade. It’s not a question that has a real answer, but it could be debated.
For example, If a trader has $1000 and uses it to trade, chances are that he or she will make $10 or $50 in a week. Having $10,000 would make that $100 or $500 a week. It all depends on volume.
The main fact is that Forex trading could be all three things: a hobby, a side income, and the main income. It’s all about the experience and the capital that people have.
However, no matter how much a 5% return is achievable, 1% is much more realistic for the majority of traders.
And lastly, no matter how welcoming the market may look, it’s important to note that nearly 90% of traders are unsuccessful in the market.
Forex realistic returns - FAQ
How much do Forex professionals make?
Every Forex professional has his or her budget for trading on the market. Depending on how much they dedicate and considering that they do this as a full-time job, it’s likely for a professional’s average income to be around 10-20% of what they have to trade with. Sometimes they could simply get lucky and make 100% of their capital in a single day. It’s very diverse.
Another important thing to note is that many professional Forex traders work in large corporations. So, in reality, they don’t really make anything besides their salaries.
Is Forex trading worth it?
In most cases, No. Nearly 90% of traders are usually unsuccessful in Forex trading and don’t have any returns.
However, those that dedicate time and energy to learning how the market works, researching all of their currency pairs and being prepared for trends tend to have at least some kind of return.
Forex trading is not worth it if a trader is not ready to take risks and learn completely new things he or she has never heard of.
Should I read Forex success stories?
Yes, definitely. Success stories are always something that can give a trader the motivation to continue learning and trading on the market. However, some of them are not supposed to be taken seriously.
For example, a lot of successful Forex traders have mentioned that the risks that got them where they are now, would never have been taken if they had their current knowledge. Therefore, it’s safe to say that most successful Forex traders don’t recommend their strategies due to how risky they are.
Can Forex be a passive income?
Yes, Forex can also be a passive income thanks to modern technology. The way traders usually do it is hiring people that do the trading for them (usually a personal broker), or install some software.
Now, this does indeed take the time out of trading and turns it into a passive income, but it’s also very slow and not very profitable.
But how much money do Forex traders make on passive mode? The answer is very little, even less than 1%. And that number usually does not change no matter how many or large trades the software makes.
What is the most profitable strategy?
There is no such thing. If there was, then everybody would be using it. In most cases, whenever a strategy comes up with a decent success rate, people use it extensively and help the market adapt to it. Therefore, most of the successful strategies are usually kept secret by those who make them.
Should I quit my job for Forex?
Forex may need a lot of time to truly learn, but that doesn’t mean that traders have to abandon everything else.
Thanks to modern technology, a personal computer is not the only device you can learn Forex or trade it. Every device such as smartphones and tablets have their own software that people can use.
Realistic Forex returns don’t become more realistic because you’re dedicating 8 hours a day to trading. They become real when you’ve dedicated 8 hours a day to learning in the past and are now quite experienced.