Everyone understands why they come to Forex for money. And it is logical that beginners want to immediately know how much experienced traders earn on Forex, in order to understand whether it is worth getting involved in this, yet it is not very clear to them.
Well, I will try to give this information in this article.
On most educational Internet portals, earnings are calculated with a possible loss, and in numbers it looks like this: 4% profit for 2% possible loss (on some Forex resources, and even less). Many precisely control their possible losses. But there are such traders (mostly newbies) who at the word Forex immediately see yachts, the sea, white sand and a beautiful life, and they trade completely differently. Do not do this.
Standard example of calculating the possible profit
And now I will give the calculations how much you can really earn by trading on Forex. A friend of mine kindly agreed to provide me with information about his recent two-day session. Here we will call him just a trader.
So, the deposit is $ 100, the leverage is 1: 200. Figure 1. Real trading day, GBP / USD currency pair . An example of trade for 2 days on one pair. Levels, point 1 (1.4990), point 2 and point 3 (1.4800), point 4 (1.4925).
As you can see, the trader entered the market in the optimal area for sale at point 1 (level 1.4990). The question is how much he can trade. If you take a trading lot 0.1 (the margin is 74.5 USD), with this volume 1 point equals 1 US dollar, which means that if the pair has passed 100 points down (to 1.4890 level), the trader already has $ 200 in the account (100 deposit + 100 profit). The trader closed and thought, and the pair goes further down and he can already put 0.2 lots (that means the cost of 1 point is $ 2). The pair goes down to point 2 (level 1.4800) of another 90 points (this is 90 X 2 = $ 180).
As a result, in one evening the trader earned 200 + 180 = $ 380. Then he sees that the level is 1.4800 and at point 3 he opens an order for a purchase of 0.5 lots (1 point is equal to $ 5). The margin for the volume of 0.5 lot is 372 USD. The pair goes up to level 4 (1.4920), this is 120 points X 5 = 600 USD. The total for two days, 380 + 600 = 980 USD or 980% profit. And if the deposit would be 1,000 USD, then the net profit of 8,800 USD in two days. It’s good to show with an example, when the price has already passed, and you try for real, maybe the trader is not one, and maybe not one dozen deposits will lose to learn how to trade.
In general, this was an example of a successful session, and if we take into account that a successful trader has about 2/3 of successful sessions, then we can draw approximate conclusions about how much profit you can get by trading on Forex. If you are interested in more specific numbers, I will say that of my friends who are engaged in forex trading seriously, no one is less than 150,000 rubles. a month has not even a bad month. This is the minimum that you can earn if you dedicate yourself completely to trading and, of course, make a lot of effort for this. The top level of earnings is not limited and depends only on your desire, aspirations and abilities.
If someone tells you that trading on Forex is an easy money, then do not believe him, he is not honest at least with you. In order to trade like this, as shown in the example above, one needs experience, perseverance, iron nerves and knowledge of Fundamental and Technical Analysis. As one comrade said, Learn, Learn, and Learn only.