rarely seen. In fact, Im going to tell you some hard truths that you probably dont want to hear, but they are absolutely necessary to learn if you ever want to become a successful. Never be a successful, long-term, forex trader. Well, this depends on how much youre risking per trade. Most traders shouldn't expect to make this much; while it sounds easy, in reality, it's more difficult. Adjust scenario above based on your typical stop loss and target, capital, slippage, win rate, position size, and commissions.
They think it will be possible to make 25 50 or more month to month.
They have dreams of turning their small account into a very large account in just a few years.
Currency traders are a bit of a rare breed.
What they make can vary widely depending on what type of trader they are and how much experience they have.
In general, how much money you make will depend on what currencies you trade, what leverage you use, and how much capital you have.
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Now, lets say you can generate 20 a year (on average). Leverage can provide a trader with a means to participate in a otherwise high capital requirement market, yet the 1 rule should still be used in relation to the trader's personal capital. The reality of forex trading is that it is unlikely to make millions in a short timefream from trading a small account. Overtrading could be mentioned in the same breath. If the goal of day traders is to make a living off their activities, trading one contract 10 times per day while averaging a one-tick profit (which as we saw is a very high rate of return) may provide an income, but is not. Even if they only win 50 of their trades, they will be profitable. Your expectancy will give you an expected return on every dollar you risk. Youre might wonder: How does this relate to trading? Risk is still based on the original 5,000; this keeps risked limited to a small portion of the deposited capital.