What are realistic and acceptable Forex income goals?
Setting realistic trading revenue goals is a difficult question to answer because there are so many factors. Every trader is different, and the reality is that most traders lose money. The reason is that trading is very difficult and it takes real effort and discipline to succeed.
It is impossible to figure out what the best independent traders do. Only a few people share that information. Those who do, may or may not tell the truth. We will start by looking at some of the publicly available independent forex trader salary data available on the internet:
We will start by looking at some of the publicly available independent forex trader salary data available on the internet:
Salary.Com says:
How much money does Forex Trader III make? The average annual Forex Trader III salary is $166,461, as of March 31, 2017. The range is typically between $130,000-$194,728. However, this can vary depending on many factors. Our team of Certified Compensation Professionals analyzed survey data collected from thousands of human resources departments at companies of all sizes and industries to present this annual salary to those in senior positions. Forex Trader III in the United States.
This professional forex trader income makes, not retail traders work from home.
A forex trader job is hard to find. But you can do it if you work with it, however, I think it will be better if we work on self-trading. Here’s everything you need to know about the brokerage.
How Much Can You Make Trading on the Forex Market?
There is no limit to how much you can earn! You can make millions of dollars. Anything is possible, that’s why so many people try to learn how to trade.
WAIT! Forex income is a challenge:
Before you go crazy here and start throwing loads of cash into the trading account. I need to tell you, only a few people get decent retail forex trading. It’s tough, and you have to be a master of trading and disciplined to make a substantial amount of money.
We could play the script all day. This is the reason so many people get into Forex Trading in the first place. They see the possibility of millions of dollars as what is possible. Next thing you know, they will lose several thousand dollars in trades. This is because they trade without knowing what they are doing and lack discipline.
Calculation of actual trading income:
So calculate the actual number of profit potential.
The first thing you must realize is that using leverage in trading is a great way to maximize profits. And risk can be pretty well managed if you’re disciplined. That’s the problem though most people are undisciplined.
But for the purposes of this article, I will assume that you have the trading discipline and ability to follow forex trading earnings; risk management plan.
The great thing is that you don’t have to risk much to make a substantial profit. I will give you an example.
You have a 10k account and you want to earn 2.5% per month with a goal of 30% account growth per year.
Now you decide that you will only risk 1% of that account per trade.
With 1% risk is 10k which is 100 USD, and so you only risk 1% at any point in time and you can earn 30% growth by never risking more than 100 dollars once.
Now there are many more numbers that have to be calculated like what is your win rate, what is the risk to reward ratio. So scripts can go on and on forever.
In fact, you can increase your risk to 2.5% or $250 and hit your goal with a single trade and meet our monthly goal using the risk ratio /reward is 1:1.
Forex income vs real estate income
Compare that to a piece of real estate where someone might have to risk more to get a 2.5% gain. For example, you can spend 100k or more to buy a house, and in trading you can earn 2.5% with much smaller investment by opening an account with only 1000. can also read information about gold investment.
You could potentially make 2.5% on a single transaction compared to the much cash and time involved in real estate investing.
That’s the only trade you’ll have to make that month to get what you would average in Real Estate to be considered extremely lucrative. The conclusion is simple: Forex has such an amazing potential that it can easily outperform Real Estate even with minimal risk measures.
I can’t think of many investments that deliver anywhere near 100% ROI a year. Let’s take a look and see how difficult it is to accomplish this with minimal to moderate risk management. It comes out to 6% a month compounded. Now, my friend, couldn’t do more in this market. If you are confident in your profitability as a trader and willing to risk say 3% of your account per trade then with a 1:2 RR you can easily It is easy to achieve this percentage with one transaction in a month.
Forex is a great investment IF you take it slow and focus on the long term. Also, read a million dollar forex strategy.
What is the average forex trader salary?
I want to compare Forex Vs Average and above career average.
Now, look at the per capita income (person) in the US The per capita income in 2015 was $58,714 via Wikipedia.
Let us imagine that you want to make at least $50,000 a year trades. After all, you’re doing this for the money, so you want to earn as much as possible.
Again using moderate minimal risk, we say you can accumulate 8% per month.
Assume that you increase the lot size with your account every month, rather than weekly or daily for risk management purposes. You will need to have a $40,000 account to earn $53,265.56 a year at 8% a month.
Now let’s say you minimize costs and do a job, so you can build your trading account. How long will it take you to make 1 million from a $10,000 account with 10% ROI per month? In 4 years you will have $970,000. Divide by 4 and you get $242,500. That means you made $242,500 annually. That is if you don’t withdraw any, let your account build at 10% ROI per month instead.
What if you want to wait until five years and then start withdrawing all your profits. In 5 years you will have $3,044,816. Now you can feel free to withdraw all profits every month. That means you will earn $304,481 per month! Just imagine that. If you build up your 10k account in five years, you will earn $3,653,779 a year later if you withdraw all your earnings. So we find that it is much better to build your account until you feel you NEED to withdraw. I mean, you can imagine generating that kind of income five years from now every month. I’m not even talking about something unsolvable. 10% a month is possible in Forex by finding a great trading system, having the right discipline and finding a trading advisor. It’s important to keep yourself under control,
In fact, 10% per month can be done with just a few high-quality deals per month. Many traders get caught up in the quantity instead of the quality of their trades. We have a forex trading earnings calculator on this website to help you with your calculations.
I will challenge you to find another career in the world where you will earn that kind of money in 5 years. I mean, to be honest, those numbers are amazing, Remember not to get caught up in the numbers. Trading is not easy but can be done, if you follow a plan.
I say this simply to reinforce how profitable the Forex market can be if you work hard and have long term goals.
You can really earn big in Forex
In short, if we can maintain a realistic view of Forex, then we have a greater chance of setting reasonable goals. This helps us to maintain a profitable trading strategy that gives us a steady Forex income over time. If you don’t believe me check out the forex calculator that will tell you all you need to know about how much Forex income you can earn.
Nothing can stop the man with the right mental attitude from achieving his goal. Nothing on earth can help a man with the wrong mental attitude. – Thomas.