60,000 per year. With a 1000 account, youre looking at an average of 200 per year. But whether its feasible or not depends on how you manage your trading business. Moving on Do you withdraw or compound your returns? While the trader could open a much larger position if he or she were to maximize leverage, a smaller position will limit risk. But what if you withdraw 50 of your profits each year?
If your six trades brought you a profit of 3,000, then your average win is 3,000/6 500. Take the Time to Find a Reputable Broker.
Your expectancy will give you an expected return on every dollar you risk. Another way that I often try to help people, is on the social Q A site. Ive listed up some great forex books, most of them classics in their own regard. Why your bet size determines how much you can make Youve probably heard this before The bigger you risk, the higher your returns. While there is much focus on making money in forex trading, it is important to learn how to avoid losing money. While the majority of learning comes from live trading and experience, a trader should learn everything possible about the forex markets, including the geopolitical and economic factors that affect a traders preferred currencies. So Lets not treat trading as get a rich quick scheme. It takes time and discipline, but I can tell you: its worth. Forexs popularity entices foreign-exchange traders of all levels, from greenhorns just learning about the financial markets to well-seasoned professionals.
The Bottom Line, the worldwide forex market is attractive to many traders because of its low account requirements, round-the-clock trading and access to high amounts of leverage. Heres why If youre a day-trader, then chances are trading is your only source of income.