How much does the average forex trader make?

If you invest $16,000 and trade 10.41% of your account that will correspond to $1,666. You could buy or sell EUR/USD for a lot of 75,000 units, which will give you $7.5 per pip. If you can make daily 15 pips you can earn $112.5 a day x 5 days = $562.5. You will make $2,250 per month. You will have overall return of 14.06%. Pay yourself 50% of your profit and reinvest the balance.

Do not increase your position size. If you do you can burn out your money in no time. DISCIPLINE is the key.

Alternatively, you could trade smaller position size, such 25,000 units ($2.5 per pip) costing $544 or 3.4% of your capital.

If you want to be a successful trader you will need to get educated. There are places where you can get training for about $2,000 for 6 months. You will have access to trade alerts indicating which direction an specific pair is moving to and you follow and enter same a make money. Thanks

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ā€¦youā€™ve just finished collegeā€¦!!!..what productive job/profession are you seeking?? Honestly for fulfilment, one needs to be doing something benefiting who ā€¦?mankind.
eg Doctors; Farmers (without them weā€™d all be scavenging or spending all our time growing our own food!); Teachers etc etc etc.
Financial market people; sales personnel etc - come under that category of (excuse the expression) BULLSHIT jobs.

Iā€™m in the process of setting up FOREX trading full time - in my semi-retirement - but Iā€™ve spent over 40 years in the aviation industry (transport industry). Iā€™ve been studying FOREX for over 2 years - and experimenting with different strategies - I am still looking for a method, for me, that works. Every person is different. How much capital?- depends on how much you wish to make, and your risk level per trade. My intention - goal - is to make 2% a week for 10 months of the year. with 0.5 % risk per trade. I initially thought of using $200k - so = $160 annual income - but just 50k with 2% risk brings the same results. Remember -donā€™t but all eggs in one basket - ie throw your lot in with one Broker - they could go bust!! Trust this helps - but at such a young age - getting into FOREX , or similiar (LETS GET RICH QUICK) schemes could land you with mental/depression problems in you mid- 20ā€™s Maybe best to ā€œget a lifeā€ first

Sorry in my writing but I use the GOOGLE translator. I have some experience in this world, but the truth is not in forex. It has always seemed somewhat more random, but I guess it depends on the strategy to follow. My last algorithm is able to know if the current trend is for a long time, or if there will be a change in trend in the coming weeks. It is a long-term strategy (months or years), but the operation can be increased because in the trends there are moments of accumulation and distribution. If for example we operate on crude, and the price is 50 and my algorithm says that it is bullish (example), we would enter long, if it goes up to 65 we could undo part of the position, if then it goes down to 57 but the algorithm continues indicating Purchases would have to reload the position to undo in higher values, only when the algorithm indicates to close the position, we would do it and we would leave the oil with everything. I think it is more reliable or easy for me to estimate the trend that will occur, than to know if on a given day it will rise or fall in an operation of hours or minutes. In addition, if you operate intraday the commissions are much higher and you can miss great movements. The great disadvantage of this strategy is that in certain occasions a position with losses must be maintained, and with little capital it is not possible, in this case I recommend the purchase of long-term financial options (not binary options). For example: if I know that a value will fall because my algorithm indicates it but it has a very bullish path, you could enter bearish and temporarily the price may continue to rise, a good operation would be to buy put at the money in a long term, in this way the price can go very against momentarily that you will always continue with your bearish position until the expiration of the option, without risk that the broker will close the operation for lack of margin. I donā€™t know if I explain myself. Simulating this strategy in several assets with the same input parameters is able to obtain a 30% annual average profit on each asset, simulated for 10 years. It is a strategy based on COT data, and one very important thing is that it is not optimized for each asset, because the input parameters are the same for CRUDE, GOLD and SILVER, that gives it reliability. Currently only 15% of operations are unsuccessful, and with little loss, and there are very very lucrative winning operations. For large capitals I do not recommend financial options, but futures, because if an operation is delayed in time the premium of the option could eat an important part of the profits, but for small accounts you must always keep the margin of account.

Well If I allow myself to consider me as an average trader, then the average return on two of my brokers Tickmill and Hotforex both is 18-20% monthly. I try to never exceed this amount to unexpected losses or profit which basically destroy your trading plan.

Iā€™ve traded before and i blew my accounts quite a number of times mainly due to lack of patience i had in the past which iā€™ve learned from, but iā€™ve also raked in quite a bit from it, ranging from $300 per day because i was a scalper, anyways, i think the best way to trade forex is to treat like an investment rather than a quick cash thingā€¦

Average trader give up.

Even more than average trader. Most of the traders give up eventually because of loss on their trading account or because they think Forex trading is a gamble.

It is hard to invest time and money into Forex trading and wait until you become profitable. But there is also other side where the best learning is to find a good mentor who can show what to do and what not do.

To make a good decision person must have experience and for experience needs time and will.

when i started about 9 years agoā€¦ i bought about every book i could find about forex. luckily for me, i am quite suspicious by nature.
i hired a developer to build these strategies in a system for back-testing. ALMOST NONE was CONSISTENTLY profitable.
i seriously think there are more people earning money in forex with books and seminars than actually making money trading.

a lot in forex is a big scam, also the ā€œlessonsā€ you can get from brokers. forex is a win-lose game, your win is somebody elseā€™s loss.
as a retail trader the ā€œother sideā€ is your broker - your win is his loss. so would you take lessons from the enemy? would they be good lessons you think or maybe made you lose your money? would all these indicators be there to help you win or confuse and lose?

then you also have the banks pushing prices through price levels where they can make a lot of money by wiping out many positionsā€¦

in shortā€¦ the odds are very much against you. but if you
a. understand that forex is not a simple hobby that makes you rich in a few weeks but serious workā€¦
b. back test anything that you have ā€œheard from Xā€ or developed yourself, before you trade real coinsā€¦
c. understand that a real good strategy works CONSISTENTLY (though not always, but more often than not)ā€¦
d. spend a lot of time really watching price actionā€¦
e.have perseverance and an analytical- and cold blooded natureā€¦

then you will be really able to make a good to spectacular income. but ā€œit ainā€™t easyā€.

PS there are though a few books that are really good (soros, market wizards and a few more).

Good question !!