If you’re reading this article, it means you’re interested in forex trading and so you want to know how much money can you make from forex trading. Most people are interested in forex trading because they have head or read stories on how forex will make them rich overnight. If you are keen to know how much you can make trading forex, then keep reading.
I get a lot of questions from novice traders. Some of the frequently asked questions when it comes to trading the forex market are:
- Can you really make money with forex?
- How much money you can make trading forex?
- Can a forex trader make millions? If so, how long will it take them to become millioners?
It’s without a doubt that money can be made through forex trading. Traders like Richard Dennis who took a $400 and turned it into $200 million in about 10 years,Curtis faith, George Soros, Bruce kovner, etc…All these millionaires and billionaires traders has proven that money can be made. in fact, a lot of it can be made.
Now, we already know that money can be made through forex but the important question is how much can you make.
Unfortunately this isn’t as easy to answer as some might hope. Okay, well, there’s an easy answer — it depends on the size of your trading accountaccount.
Well, I guess that’s not the answer you wanted to hear, is it? My easy answer isn’t really useful.
Unless you are born into a rich family or you have some kind of special talent, you have to go to school for more than 12 years, work for more than 8 hours per day. Sometimes even have to work on weekends, holidays, extra hours and still make less than $ 150, 000 per year
Some people look for other ways to make extra income. Hence some turn to forex trading hoping to make a lot of money but like I said in the beginning of this article, making money on forex trading depends on how big is your trading account. What do i mean by that?Let me ellistrate what i mean.
Suppose you open a $20,000 trading account and make 10% profit each month, it would take you at least 10 months before you can double it to $ 40, 000 if you don’t withdraw any money.
If you open a $5 000 trading account, or $1000 or $500, etc. it would still take you 10 months to double it if you make a 10% profit per month.
But can you really make 10% profit every month trading forex?
You can’t consistently make a 10% profit every month because sometimes you will have losing months, there will be months where you will make more than 10% and sometimes you will make less. It’s even possible to make 50% profit or even more in one month, especial with a pyramid method. So yes you can make 10% profit per month.
Now, let’s assume that the only time you will increase your lot size is when you double your account, but your risk percent stays the same. How long would it take you to increase your $20, 000 account to a million dollar account?
To take a $ 20,000 trading account to $1 million, it could take you 5 years and 8 months (of course if you make 10% profit every month and only increase your lot size each time you double your account).
For a trader with a $5 000 account, it would take them 7.1 years to make it to $1 million.
What about a $500 account? Unless you’re willing to wait for at least 10 years, then you can start off with a $500 account and increase your lot size each time you double your account.
With these hypothetical numbers, you could estimate how much you can make per month or year. However, that’s an assumption. It may not work out exactly like these above examples, but it is a good rough guess…
The truth is, no one can give you the exact figure. more accurately, but it’s obvious that if you have a bigger account, you can expect to make more money. However this is possible only when you become a consistently profitable trader but if you follow your greed, you will do nothing but losing all your money. No matter how big your account is.
Do you need to have a bigger account to start trading?
Bruce Kovner took a loan of $3,000 and turned into more than 10 billion, R. Danni’s started of with a $400. I also believe that you too can start small and grow if you’re patient enough. However, bigger accounts are much easier and fast to grow. So it’s up to you. What I am trying to say is that a small but steady monthly profit can create a great income for you after a while.
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