- Hi!
- Hi.
- What do you do?
- I trade forex.
- How much you earn?
- I trade.
Probably the most common and frequent question that can be heard from the beginner or the person concerned - this is how much you earn on forex?
From a theoretical point of view, you can make money on forex is very much in a day can increase the initial capital of a few tens of times per month you can get more than 1000 % profit and more. Advertising on the Internet is just such promises about earnings. Fortunately or unfortunately, blame for the inaccuracy of advertising language is not rotated. Because the potential profit on forex limited only by the number of transactions and the maximum position size. Let us not deceive anyone and admit to each other that in the first place is the prospect of big money and unlimited profit margins attract people to trade in the foreign exchange market - Forex.
For clarity, the average currency pair EUR/USD (Euro/Dollar) per day makes a move to 80-150 points (stop at 100 points a day). Using different amounts of the transaction (position sizes) a trader can get per day from 10 up to 100.000 dollar.
These figures do not deceive, and so made the market for all the rules are the same. But do not forget that all this is in theory. In practice, the majority of traders (95 %) lose their money, and only a few can actually earn foreign exchange trading for a living. Home snag is how to get 100 pips per day. And from that moment the reality and practice. Trading on the financial markets always involves high risk, there are no guarantees, as there is no 100 % certainty that you have selected the correct currency exchange rate trend. Unfortunately no one person and no computer can not accurately predict the direction of market movement, so that instead of the desired profit trader receives damages that could eventually completely drain the entire deposit. Get all the profits in the market is not possible, but you can pick up some of it, and study it for several months, if not years. There are many ways and methods of market analysis, prices, schedules, etc. that allow the most likely to determine the direction of future currency movements. The main difference between them is, in fact, is the risk and potential profits.
At this stage there are traders and their strategies, which, depending on the style of trade represent a real opportunity to profit. In practice, for many traders is paramount goal is not to make money, not lose them. Next, then, depending on the style of trading to determine potential profitability strategy. Roughly speaking, there are two styles of trading - conservative and aggressive.
The first involves long-term investments are usually for a period of not less than one year, the risks are reduced to a minimum, and the yield ranges from 10 to 30 percent per annum. There are conservative strategies that achieve greater profits and from 50 to 100 percent per annum, but in this case the profit is largely dependent on market factors.
Aggressive style of trading carries a higher risk, but the profitability of aggressive strategies can exceed 100 percent per annum, such profitability is achieved through intensive trade and at times, quite high risk. Some aggressive strategy can bet on the total amount of the deposit, in case of a correct definition of market movements profit increases capital several times, in case you lose capital is fully depleted.
Most traders are free to determine the risks they are willing to take for the sake of profit, which for profits, a good income is 5 - 15 % per month of the amount of total capital.
Is it enough to you 5 - 15 % per month? See the table below:
Many professional traders suggest just such results. But even such a constant yield is very difficult to achieve, it requires knowledge and understanding of the market that come with experience.
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