Stories of massive gains in the currency markets have made a lot of people wonder if Forex is a good way to make money. The cryptocurrency boom and bust in the last two years has shown us that there is potential in the market and people want to invest in good, profitable currencies, even if they were not real. The only limiting factors are experience and knowledge.
Trading Currencies for a Living
Many new investors have wondered how to make money online with no previous experience. Is it even possible?
The Forex trading reality is that the number of people who make big gains in a short period of time is very small. In order to be successful, you need to go slow and make consistent gains. You’ll see an occasional big win here and there.
Most of the successful currency traders who have taken up trading currency for a living do it in the same way. No serious investor comes into the market thinking they’ll quickly make a big amount of money in a few weeks and then retire with a huge sum. The majority of them join the market for the long-term making small trading profits per day. They also have days when they end up in the red. But since they are careful, the losses don’t impact their overall holdings significantly.
Win small, lose small.
How Much Do Professional Forex Traders Make
The amount of Forex trading profit per day is difficult to calculate. It is different for each trader and affected by a lot of factors such as money invested, exposure to risk, trader’s experience, market reaction, and currency portfolio.
If we were to look at the average of how much Forex day traders make per year, we can get some numbers from Forex trading exchange and payscale/salary websites.
A foreign exchange trader I is someone with 0 – 2 years of experience and a degree. They make somewhere between $40,000 to 90,000 per year.
A foreign exchange trader II has experience of 2 – 4 years and a degree. These guys make somewhere from $60,000 to $120,000 per year.
A foreign exchange trader III has a degree and 4 – 7 years of experience. They typically make around $110,000 to $200,000 per year.
That isn’t bad, considering these pay scales are equals to or exceed payscales in other investment banking professions.
How to Make Money in Forex without Investment
The number one rule of trading is that you need a good deal of investment to start. We don’t really agree. You can start Forex trading with 100 dollars as a part-time investor. The key is to only make trades when you get a profit. If you understand the market and know how to read the forecasts, you can make a good steady income even with a small initial investment.
Obviously, if you invest a sum like $10,000, your options and opportunities would increase significantly. However, we do not advise that you jump in with a huge sum of money without experience or market research. Start with a small amount, test the waters and learn the trade for at least six months. Once you get the hang of things and show that you can make profitable trades, you will find investment flow towards you.
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