What are realistic and acceptable Forex income goals?
Setting a realistic trading income goal is a difficult question to answer because there are so many factors involved. Every trader is different, and the reality is that most traders lose money. The reason is that trading is hard and it takes real effort and discipline to succeed.
It is impossible to know what the best independent traders are. Only a few people shared that information. Those who do, may or may not be telling the truth. We’ll start by looking at some public freelancer salary data available on the internet:
We’ll start by looking at some public freelancer salary data available on the internet:
Salary.Com says:
How much does a Foreign Exchange III trader make? The median annual Forex Trader III salary was $166,461, as of March 31, 2017. The range is typically between $130,000-$194,728. However, this can vary depending on various 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 range for people with the Tradesperson III job title in the United States.
The income of this professional forex trader, not a retail trader who works from home.
Foreign exchange trader jobs are hard to find. But you can do it if you work in it, however, I think it is better if we try to trade for ourselves. Here is everything you need to know about the broker.
How Much Can You Make Trading the Forex Market?
There is no limit to how many you can make! You can make millions of dollars. Whatever is possible is why many people try to learn how to trade.
WAIT! Challenging Forex Earnings:
Before you go crazy here and start throwing lots of cash into a trading account. I have to tell you that, only a few people get rich retail forex trading. It’s hard, and you must be a master of trading and discipline to make huge amounts of money.
We can play scenarios all day. This is why 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’ll be losing several thousand dollars trading. This is because they trade without knowing what they are doing and lack discipline.
Calculation of Realistic Trading Income:
So let’s calculate realistic numbers on potential profits.
The first thing you need to realize is that using leverage in trading is the best way to maximize profits. And risk can be managed well if you have discipline. That’s the problem though most people lack discipline.
But for the sake of this article, I will assume you have trading discipline and have the ability to follow forex trading income; risk management plan.
The good thing is that you don’t have to take any risk to make a big profit. Let me give you an example.
You have a 10k account, and you want to earn 2.5% every month with a goal of 30% account growth every year.
Now you decide that you will only risk 1% of that account per trade.
At 1% risk 10k, that is $100 USD, and therefore you are only risking 1% at any time, and you can potentially get 30% growth by never risking more than $100 at a time.
Now there are more numbers that must be calculated like what is your win rate, what is the risk to reward ratio. So the scenario can go on and on forever.
You can increase your risk to 2.5% or $250 and hit your goal with one trade and meet our monthly goal using a 1:1 risk/reward ratio.
Forex Income Versus Real Estate Income
Compare that to real estate where one might have more risk to achieve a 2.5% profit. For example, you can spend 100k or more to buy a house, and in trading, you can earn 2.5% with a smaller investment by opening an account for as low as 1000. You can also read information about gold investment.
You can potentially make 2.5% on one trade versus more money and futures involved in real estate investing.
That’s the only trade you need to make that month to get what you’ll average in Real Estate is considered very profitable. The conclusion is simple: Forex has tremendous potential, so it can easily surpass Real Estate even with minimal risk measures in place.
I can’t think of many investments that produce close to 100% ROI per year. Let’s take a look and see how difficult it is to do this with minimal and moderate risk management. It yields 6% per month. Now, my friend, more than can be done in this market. If you are confident in your profit as a trader and are ready to risk, say 3% of your account on each trade, then with RR 1: 2 you can easily reach this percentage with one trade in a month.
Forex is an excellent investment IF you take it slow and focus on the long term. Also, read a million USD forex strategy.
What is the average salary of a forex trader?
I want to compare average Forex Vs and average above career.
Now, looking at the average income per capita (person) in the US The average income per capita in 2015 was $58,714 via Wikipedia.
Let’s imagine that you want to make at least $50,000 a year trading. After all, you’re doing this for money, so you want to make as much as possible.
Again using minimal-moderate risk, we say you can collect 8% per month.
Assuming that you increase your lot size with your account monthly, instead of weekly or daily for risk management purposes. You need to have a $40,000 account to make $53,265.56 a year at 8% a month.
Now let’s say you can reduce your expenses and work with work, so you can build your trading account. How long will it take to make 1 million from a $10,000 account at 10% ROI per month? In 4 years you will have $970,000. Divide by 4, and you get $242,500. That means you make $242,500 annually. That is if you don’t withdraw anything, instead let your account build 10% ROI every month.
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 the profits every month. This means you will make $304,481 per month! Just imagine that. If you build your 10k account over five years, you will make $3,653,779 a year after that if you withdraw all your earnings. Therefore, we see that it is better to build your account until you feel you NEED to take the money. I mean, can you imagine making that much income five years from now every month? I am not talking about something that is unattainable. 10% per month is possible in Forex by finding a great trading system, have the right discipline and find a trading mentor. It is important to keep yourself in check,
In fact, 10% per month can be achieved with just a few high quality trades per month. Many traders get caught up in the quantity rather than the quality of trading. We have a forex trading income calculator on this website to help you do your calculations.
I will challenge you to find another career in the world that will make you as much money within 5 years. I mean, honestly, the numbers are blown, Remember though don’t get caught up in the numbers. Trading is not easy but it 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 in mind.
You can really make Big Income in Forex
In conclusion, if we can maintain a realistic view of Forex, then we have a greater chance of setting reasonable goals. This helps us maintain a profitable trading strategy that brings us steady Forex income over time. If you don’t believe me I saw a forex compounding calculator that will tell you everything you need to know about how much Forex Income you can make.
“Nothing can stop a man with the right mental attitude from achieving his goals. Nothing on earth can help the man with the wrong mental attitude. ” -Thomas Jefferson
Thank you for reading!
Please leave a comment below if you have any questions about Realistic Forex Earnings!