This article
also explains in which order of magnitude you have to think when making an
average Forex profit and average currency trading profit. Subsequently, a
breakdown is made between the possible Forex earnings per category or level of
traders (beginner, advanced, professional). In this way you get to know what
you can expect at every stage of your trade career. This is important as many
traders simply fail because they pursue unrealistic expectations.
Your ambitions
and financial goals must be feasible and at the same time interesting and
motivating
purely on a fictitious amount.
Realistic Forex Profit - What can a Forex trader expect from his Forex profits
Here we discuss the most important parts of profit in the field of Forex trading.
Currency trading average profit - Value in Euros compared to% of profit and revenue
On many websites potential Forex traders are lured with claims about hefty profits. Profits of 10,000
Euro per month, 5,000 Euro per day or 500 Euro per hour. This is not a realistic Forex profit or realistic
currency trading profit.
With many of these types of claims you can safely draw the following conclusion: when it seems too
good to be true, that is it. So do not be tempted by thinking that this is also somewhat realistic for the
novice trader.
Making money with Forex and realizing high profits in the Forex market is of course possible, but the
most important thing to understand about Forex earnings is that you have to measure them in percentage,
not in an amount in Euros.
In other words, you focus on a certain amount that
is proportional to your trading capital, and not just purely on a fictitious amount.
Average profit currency trading - Associated risks
Forex is pre-eminently the largest financial market in the world. You can definitely say that this
market is extremely accessible and liquid. But remember that the high volatility also entails a risk.
Be aware that potential profits go hand in hand with associated risks.
Trading in currencies / Forex brings great opportunities. For example, unlike other financial markets,
it is easy to trade with leverage. By using this lever you can quickly gain exponential gains, but the
same goes for losses.
It is wise to first identify your risk profile before you start trading in Forex. Normally Forex tries to
prevent traders from risking more than 2% of their trading capital per individual trade. It therefore
seems logical that a beginner does not take more risk than 2% per position. To determine your Forex
starting amount and investment capital you read the corresponding article.
What profit percentage can you best pursue at Forex trading?
This is a cunning question, and many professional traders will give a different answer here.
The answer depends strongly on your trade strategy and your risk profile. Some Forex traders strive
for high profits and returns, regardless of what. While some professional traders will be reasonably
satisfied when their monthly balance can close with 2% profit.
To give you an expectation pattern about the Forex market, you focus on no more than 5% profit per
month.
You may wonder, how is 5% a realistic Forex gain per month, when you are expected not to run more
than 2% risk? That 5% is the absolute maximum to be set up for beginners, you may even consider
keeping this down. In addition, not all of your trades will be profitable.
In fact, most Forex traders have more loss-making than profitable trades, but the revenue from each
profitable trade is usually higher. As a result, a trader is expected to have a winning / losing trades
ratio such that this is between 3 and 5% average Forex earnings per month.
Realistic earnings Forex - Forex earnings based on experience
We have just discussed some basic concepts in the area of average Forex earnings, now is the time
to look at the different trader profiles in more detail.
Starting Forex traders
When you are new to the world of Forex trading you can not immediately expect to make a profit.
That does not mean that you will not make a profit, but you will also have to pay a small fee.
Most beginning Forex traders gain valuable experience while in the beginning they often lose part
or possibly even their entire trading capital. For the beginner, the main goal should be: learn as much
as possible and gain experience and make as little loss as possible.
Experienced Forex traders
After the possible loss of your first (or perhaps even second) initial deposit, you probably have a lot
of knowledge about your profile as a trader. You have understood the rules behind your personal
successes and failures.
This is the moment when hopefully and potentially you can expect profits. It is not advisable to focus
on more than 5% profit per month because it is annoying to have to fill in the trading capital every time.
Professional Forex traders
If you are a professional and have a strategy that has been tested and proven to be profitable for you,
then it is time to focus on the Euro value of your Forex earnings.
While you now know that you can earn around 4% or more per month, you also know that you want
a comfortable income with your Forex activities.
Suppose you need around 3,000 Euros for a good and qualitative standard of living, and that you can
make 4% of monthly Forex profits. Then you can assume that your trading capital will have to be around
100,000 Euros. In this way you are able to earn 3,000 Euro to maintain your expenses and living standards,
while you can use an additional 1,000 Euro (or 25%) as a reserve to compensate for lossy months or more.
Forex average profit or Forex exercise
Especially for beginning Forex traders, it is important to have the right attitude and a realistic expectation
pattern with regard to Forex profits. Do not believe in golden mountains or claims that seem too good
to be true.
Forex requires the necessary exercise and is hard work to gain experience and knowledge. Learn and
experiment what the most profitable Forex strategy is for you. Admiral Markets offers you extensive
educational materials.
With the right attitude and discipline you will be able to take a step to become a better trader. Focus on
your development as a trader with knowledge and education. And you learn to look at yourself and your
goals in a realistic way.
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