How much money can we make trading Forex every month? When you consider trading Forex for a livelihood or even part-time, this is often the first thing that comes to mind. The problem is that it is a dangerous slope. Curiosity is a natural emotion. While there is no harm in asking questions, the answers you get and whether you linger on them or not can have major implications. We will discuss how much profit is too much, the right time horizon for calculating returns, and an alternative way to fund your FX trading account with Ripple.
Forget What You Have Heard
Have you ever been persuaded to purchase a trading method that guarantees a monthly profit of 10%? How about a monthly savings of 20% or 30%? If you are one of those traders who is still unsure how much money you can make trading Forex, disregard everything you have learned. There are no certainties, only possibilities, and changes in this profession. You will not make a 30%, 20%, or even 10% profit every month, no matter how good you are. Sure, now and then, you will have a terrific month, but maintaining those improvements is unrealistic. People that use such earnings as a selling strategy give this industry a terrible name.
Sometimes you have to discard what you believe you know to go on. One of those times has arrived. Think twice before relying on your $500 trading account to support you. The trading business is a marathon, not a sprint. It is a gradual, systematic process requiring great discipline, and you cannot have enormous rewards without massive risks. So, if someone gives you a method that makes a 30% profit every month, you are getting a ticking time bomb. This leads us to a very productive, albeit unique, method of thinking about income potential.
Prioritize The Trading Process Over Profits
You must first work on the process to become a consistently successful trader. We cannot emphasize this more. No good trader has ever focused only on the amount of money they can make each month. Many traders do not even have such an objective. We are more bothered with how much money we could lose in a particular month than how much money we could make. Profits will flow if we preserve our capital and follow the process, we have laid up for ourselves. That is the crucial point. A race-car driver does not get into their vehicle and concentrate solely on winning the race. Sure, that is the goal, and it will inevitably cross their minds, but they are more concerned with specifics like when to brake, whether to turn early or late and when to pump the accelerator. They understand that it is the trivial things that count. If they stick to the method of solid driving that they have been practicing for years, they will almost certainly win.
Trading is no exception. Making a 50% profit per month will not make you any money. It will, however, quickly knock you out of business. You should concentrate on the trading procedure, just like a racing car driver. Keep your stakes low, wait for good setups, and avoid trading the news. You should concentrate on a handful of the processes in this process. If you do these things consistently, the money will come to you. We understand that mastering a method is not appealing to everyone. Here are some ideas to consider if you need to set a monetary goal:
Maintain a Conservative Attitude
Even if you trade Forex for a living, you are not generating a 30% profit every month. If you keep your wagers small, which you should do, your earnings will be minimal. However, this is a positive thing. There is nothing wrong with aiming for a 2% to 5% monthly increase. In fact, it is an excellent location to be. This is not a goal you want to hit home runs on. If you set a monthly profit goal of 5% and make 40% instead, you’ve probably over-traded or over-leveraged your account or both. You do not want to feed either of these behaviors.
Make it a Monthly or Annual Objective
The issue with weekly and daily goals is that they do not give you enough time. If you trade the daily time period, you might only receive five to ten good setups per month. You cannot measure a yield in one day or even one week if you only do one or two setups every week. You can also create quarterly and annual goals. Always keep in mind that the process of achieving those earnings is far more significant than the money itself.
In the Long-Term
Over time, the amount you can earn with Forex is practically endless. Entering and quitting the market with millions on the stake is not even a ripple on the radar with $5 trillion traded every day. We believe that is the issue right there. Everyone is rushing to get their hands on a slice of the $5 trillion pie.
The market rewards those who are disciplined. Those that wait patiently for quality situations and never take unnecessary risks are rewarded for their caution. No matter how much experience you gain, you will always have good and poor months. Some may find figures like this unfathomable. However, many of the multi-millionaire traders we have heard about began with far less.
Trading any market profitably takes time and effort. Becoming consistently profitable takes years, not months or weeks. It becomes much easier to carry things carefully once you have that information. Rather than trying to trade every day, keep your wagers small and focus on quality situations. If someone boasts that their trading technique or system generates 30% or 40% monthly profit, run, and do not look back. While such earnings are feasible, they are not long-term and will undoubtedly result in a blown account.