This is something traders coming into this get-rich-quick scheme and astronomical return on investment systems fail to realize. There is an associated risk with every trade. There are no guarantees in trading this market and the profitable traders some of whom I have learned from over time understands this and as such trade based on probabilities.

If it is more likely than not that a trade setup plays out, they place conservative bets on the odds playing out. They say the road to success is a lonely one. To get to where you really want to be in forex trading whatever that is. It is an entire process that requires a lot of discipline, and patience that will play out for years.

Forex trading is a business and having a separate mindset from other traders who rush in and rush out of this business is going to ensure your long-term goals. Try to keep your trading conservative. While setting monthly goals is important, the longer-term target should always be at the back of your mind. Keeping your risk small and racking up those profits, in the long run, is the most sustainable. Keeping target in this target reasonable range is in my view where new traders should strive.

There will always be bad months where may not make up to your desired target and certain good months where you will exceed your desired target no matter your strategy. Remember to always think long term. Over to you, what is your take on the topic? Do you have a different view? Please log in again. The login page will open in a new tab. After logging in you can close it and return to this page.

Must Read: How Much Can You Really Make In Forex Trading? BlueWalk October 3, One Comment. Table of Contents. So How Much money Can You Really Earn In Forex Trading? CHECK OUT: The worst trading advice given by so-called gurus Associated risk This is something traders coming into this get-rich-quick scheme and astronomical return on investment systems fail to realize. The Destination They say the road to success is a lonely one. Remember to always think long term Key Takeaways: It is easy to make money in this business but hard to keep it.

However; after the gambling is out of the way, a trader can then set out to achieve consistent gains with a solid market understanding. Do you have to blow your first trading accounts to get started? Of course not. The reason so many do is because of the mindset that they start with; find as many trades as possible and make as much money as humanly possible.

This is what we all trade for, but more trading on the wrong trades equals more losing, not more winning. What you will be able to gain out of the market is largely based on the amount of money your trading account has in it to start with. It is simple math that the more money in the trading account, the less percentage the trader has to make, to make a decent living.

This is not taking into account bigger months, smaller months or losing months. Checkout the detailed cheat sheet showing how accounts can grow with profitable trading and regular saving. Getting rid of unrealistic goals will help you with the mental application of your trading plan. Traders that are trying to reach percentage gains that are far too large will in most cases do two things;.

Overtrading is a very common mistake made by many traders who are unrealistic in what they think they can achieve. They operate on the assumption that trading more will make them more. The complete opposite is often true. Trading more will lead them to taking setups that are not worth taking and they will begin to lose. Risking too much will in most cases lead to an account being blown. Occasionally a trader will get lucky and pull off a large winner. Over time however, the same trader can't keep it up and when the losses come their account is crippled.

The first crucial element to making real profits is knowing how much you are either winning or losing.

This is done by knowing in real terms how much money you are either making or losing. Pips are both extremely deceptive, and do not pay the bills. You can be positive in pips, and down in real cash. Click To Tweet. Read why we work out profits in dollars and not pips. The other reason we do not set daily or any other sort of target, either weekly or monthly is for the simple fact that we have no control over the market.

Trying to take control over something we will never have control over will cause trading mistakes. These types of mistakes lead to over-trading and looking to make more and more trades because we have set goals for ourselves we now need to reach. We can only take trades as they form and the market presents them.

Trying to force the market never works and is a huge mistake. Having a small account will often mean a trader is far more likely to risk a higher percentage of their account , use a high amount of leverage, and overtrade looking to make larger gains. With that said; a lot of traders begin with small account sizes. Often the best way is to use a small portion of the amount you intend to trade with, and put the rest aside in savings.

As you continue to save and build a bigger base trading account, you can use the other portion to perfect your trading method. Every trader is different. How they trade and what method they use will vary greatly from trader to trader. Learning a method such as price action trading and perfecting that method will greatly increase your chance of making consistent returns in the market. If you can learn to trade price action and start using strict money management principles, you will set yourself apart from the pack and give yourself a good chance of becoming consistently profitable.

I hope you have enjoyed this lesson. It is designed to show you what is possible, but at the same time bring you into the correct mindset that is needed in such a competitive market such as Forex trading. Leave Your Comments and Questions in Section Below;. Johnathon is a Forex and Futures trader with over ten years trading experience who also acts as a mentor and coach to thousands and has written for some of the biggest finance and trading sites in the world.

Any advice will help thank you. If you started with just £, it is completely do able to make £50, over 12 months. Attempting to turn small accounts into large ones extremely quickly will normally end in over risking the account to a point where a string of losses will cause huge dents, if not blow the account. Your email address will not be published.

Forex Trading for Beginners. Price Action Trading.

Two groups of Forex traders google for methods of calculating Forex profit. The first group are the Forex traders who want to know how much profit they will make with the positions they want to take or they have taken. The second group are novice Forex traders who want to know how much profit Forex makes as a full-time work and in long-term. These facts will make some big and positive impacts in your Forex trading results. When you know these facts, you will have more enthusiasm to continue, and you will know how rich you are going to become through Forex trading, and what you should expect for if you become a Forex trader.

So, make sure to read this article to the end. Forex trading covers so many things now. From trading currencies against each other, to trading metals, CFDs, indices, grains, cryptocurrencies, etc.

However, Forex traders are mainly interested in trading currencies against each other, and so they want to know how much profit they make through it. Each currency pair has a different pip value. If it goes up to 1. Similarly, if the price goes down from 1. Now, if you know how much the pip value is, then you can say how much profit you have made or how much you have lost when the price moves for 10 pips.

To make your life easier, you can use a pip value calculator , and a profit calculator. Learn about the importance of calculating your position size and use our position size calculator here.

As you saw above, it is easy to learn how much profit each position makes. However, something which is more important to know is how much profit you will make in long-term as a Forex trader.

This is the sweetest part of the story to know how much profit you can make, per month and year. You can hardly find a multimillionaire retail Forex trader.

Those who are after doubling or tripling their accounts are exactly the ones who wipe out their accounts once in a while. Their problem is they have never spent a few minutes to do some calculations and have a perspective from their future as a Forex trader.

But they are wrong. In this article, I will open your eyes on the reality to show you that all you need to become a rich or multimillionaire Forex trader is patience and consistency. So, make sure you read the rest of this article to the end. I see lots of false and misleading information on the Internet about the profit that Forex traders can make per month. For example, in an article on one of the most famous trading and investment related websites thebalance.

This is the most ridiculous thing you can ever hear or read. Consistency is the most important thing. So, it is not the percentage of the profit that says who is a good Forex trader.

It is the consistency that counts. This is what being a consistently profitable Forex trader means. Traders who say they can double their accounts every month, but they disappear when you ask for their track record, are either liars, or it is just a couple of months that they have doubled their accounts, and they still call themselves Forex traders.

I guarantee that they will wipe out their accounts as well. It needs several articles to explain this. Briefly, first you must choose a Forex trading strategy. Then you must learn it properly and demo-trade it until you become able to make profit with your demo account, consistently at least for consecutive months.

Then you can open a small live account and repeat this with real money, and if you can repeat your success with real money, at least for 12 months, then you are a consistently profitable Forex trader. I have explained this in more detail here and here. This question means how much profit you can make through Forex trading in long-term. To answer this question, I assume that you have already become a consistently profitable Forex trader, who is able to make profit, consistently, every month.

However, here is where most Forex traders make a big mistake that causes them not to make a fortune through Forex trading. Therefore, they either try to make more profit and double their accounts every month, that will cause them to wipe out their accounts because they must do this through taking too much risk , or by overtrading , or they start with a money that they cannot afford to lose.

I guarantee that all of these mistakes end to failure, even for traders who are consistently profitable. Such a bad mentality comes from having no long-term calculation, which is something that I want to do here for you.

This calculation will change your life. You will see that you can even become a multimillionaire with a small account, and making a small monthly profit, only if you have the consistency, discipline and patience that I talked about above.

You just need to know where you will be, after one, two and three years of Forex trading and making profit consistently, no matter how much monthly profit you make, or how small your account is. I have created a simple Excel Spreadsheet that you should always have open on your computer.

It enables you to know what your account balance has to be, every month and while you are trading and growing your account. You must take a look at it at least once every day to remind yourself about the destination of your Forex trading journey.

As I mentioned above, all you need to become a rich or even a multimillionaire Forex trader is consistency. If you are still demo-trading to master your trading system and become a consistently profitable demo-trader, you must use our spreadsheet to keep yourself in the right track, and to build the discipline you need to become a professional Forex trader.

This file prevents you from over-trading and expecting too much from the Forex market and yourself. Please read the explanations below the screenshot. You can change two cells in our Spreadsheet see the screenshot above to compare the different results it calculates and returns:.

Those columns cannot be changed. However, the last column is for you to enter the account balance that you want, to compare the results. This is a relatively realistic monthly profit that professional and consistently profitable Forex traders, especially day-traders can make. However, feel free to change it to different numbers to compare the results. This has been proven by my years of Forex trading experience.

However, traders have different styles and strategies. Based on such a wrong mentality, they try to double their accounts through risking too much or overtrading, and this will cause them to lose their money. As I mentioned earlier, consistency is the success key here. Please note that, to achieve what our Spreadsheet forecasts for you, you must increase your lots size accordingly, when your account grows and vice versa. As you see, it is possible to become a multimillionaire through Forex trader, even when you start with a small account.

You just need to be a consistently profitable Forex trader, which has to be achieved through learning, demo-trading and mastering your trading system and developing the discipline that Forex trading needs. What you must note is that it is not the spreadsheet that tells you how much profit you must make every month.

It is you who enter your average monthly profit percentage. Your trading style and strategy determine your monthly profit. Our spreadsheet makes your life much easier for you. It enables you to have a goal, decision and long-term plan for your Forex trading program and the profit you want to make with Forex trading every month, and the account balance you dream to have as a professional Forex trader. These are the things that most Forex traders think about, but they never set them as the goals that have to be written somewhere.

They just open a live account when they think it is the time to, and they keep trading. Therefore, download and save our spreadsheet on your computer.

Enter the account size that you want to start and the average monthly profit you make. Have the spreadsheet always open in the background and check it from time to time. When the month is over, check your account balance and highlight the related cell on the spreadsheet:. This is a big mistake that can cause you to lose. Even if you can achieve it in 48, or even 60 months, it is still great, and is something that But you can do it if you want.

I explained how this is possible to achieve. Our spreadsheet should lift the stress from your shoulder. It is not there to give you more stress. If you feel stressed while trading because you are anxious to achieve the determined monthly account balance, then there is something wrong. Either you are taking too much risk, you are trading with the money they cannot afford to lose, or you have entered a nonrealistic monthly profit percentage.

This problem can be easily be resolved by changing the numbers:. This spreadsheet shows you the future you are going to have after 1, 2, 3 years of Forex trading and beyond. It tells you how wealthy you will be if you follow the same track consistently. There is no other business that can do this. Above all, other businesses are not less riskier than Forex trading. Therefore, Forex trading is not riskier than other businesses, 1 if you become a consistently profitable Forex trader first, and then you start trading with real money, and 2 if you trade with the money you can afford to lose.

The conclusion is that you can make lots of profit with Forex trading, and you can even become a millionaire or multimillionaire with it. However, it has to be done under the conditions I summarized above.

I cannot go into the detail of becoming such a Forex trader in one article. Consistently making profit through Forex trading has a long process and cannot be achieved overnight. In spite of this, I think it is worth spending time because as I explained above, no other business can make the profit that Forex does. This spreadsheet shows you the way, reminds your current situation, and reveals the future and your final destination, if you use it properly. I don't believe in luck. I believe in sweat.

This system more often than not may hold true for a while but over time, you may even lose your capital. Required fields are marked. From trading currencies against each other, to trading metals, CFDs, indices, grains, cryptocurrencies, etc. Would love your thoughts, please comment. This is a big mistake that can cause you to lose. For this example, suppose the trader is using 30 to 1 leverage, as that usually is more than enough leverage for forex day traders. We are retailers, as long as you do not trade for an institution and we are very small fish in a very big pond.

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