Trading Forex: How Much Profit Should You Expect?
I don’t want to beat around the bush. People want to trade Forex because they want to make money. They see the claims other Forex traders are making and they also want to live the dream of big money, the lazy trader’s lifestyle and the security that comes with a big bank account.
The problem is, most people that want to trade Forex don’t have any real life experience with Forex traders. They only see what they are told on the Internet from marketers selling something. The truth is, very few people have even met a real trader and even fewer have a clue about how much a trader makes.
The question you should be asking, “Are the claims you see on the Internet for real”? Are the reports of big, fast profits something real, or just an urban legend? If you start your Forex journey based on the lie of big winnings in a short period of time, you are setting the stage to fail. The best way to set yourself up for success is to align your expectations with realistic, achievable goals.
If you investigate on the Internet and look for yearly percentage gains of other investment vehicles like hedge funds, the S&P 500 or mutual funds, you’ll find numbers like 5%, 15% or maybe 20% a year. These are professional firms getting these type of returns on their investments. So, should you expect 100% gains every month by trading Forex in your free time from your house?
I want to be clear. Forex trading is a great way to make money, if done the right way. You can build tremeneous wealth over time. But you’ll never make any money if you expect too much, too fast.
The amount of profits from Forex trading depends on a lot of factors. First of all, how much money do you have to invest? Then things like the trading system you use, your risk management strategy, the size of your stop loss, etc. come into play. Everything together determines the profitability of your trading.
The first thing you should do is concentrate on percentage gains rather than money earned. If someone claims making $103,945 trading a strategy, that does not mean you will do the same with a $500 starting balance. However, if the strategy makes 8% average gains, you can determine how much money that would be with your starting balance.
Set And Forget Currency Signals Service is a signals service that provides signals once a day at 5:30 PM New York time. This makes it very easy for the followers of the signals to duplicate the results of the signals. Since the amount of money you make is determined by your starting balance and money management strategy used, they have provided some case studies showing what the signals would have made using 3 different money management strategies. To see realistic expectations from Forex trading, look at the case studies at Set And Forget Currency Signals Service.