How much money to earn in Forex is a question that not only new traders will think about, but also investors. To know the most accurate answer, Kintech will analyze what factors will affect the amount of money earned so traders know which skills to focus on developing and how many resources to devote to trading.
Ways to Make Money From Forex
Before starting to answer how much money Forex makes, surely all traders must be aware that Forex or other financial markets are always high risk, especially Especially, you can burn your account and lose all your capital.
Being aware of that, here are popular ways to make money from Forex:
- Through currency pair trades
This is the most basic way to make money from the foreign exchange market. Traders will create an account at the exchange, deposit money, choose a currency pair and place an order. Note that you need to choose reputable exchanges to avoid the risk of being scammed and encountering technical errors.
If you have a certain level of knowledge and skills, trading can bring you a steady profit of 5-20% per month. However, if you continuously lose money, traders need to pause and improve their “skills” before thinking about how much money they can earn in Forex.
- Through funds
If you have a small amount of capital but have extensive experience, you can look to investment funds and funding. These funds will often have specific conditions on profit and capital management for each account. If those conditions are exceeded, traders will be automatically funded. - Through selling signals
Once you have a certain confidence in your transactions, how much money Forex makes depends on investors who will buy signals from your own transactions.
To receive this commission, traders need to have a higher rate of successful transactions than losing orders, and a trading time in the market long enough to gain trust and reputation in the trading community. pandemic. Different trading platforms will have different opportunities for masters.
- Through brokerage support
The least risky way to make profits but takes a lot of time. The job is quite different from the above 3 types because in addition to trading skills, personal branding skills are also important so that you will be a bridge between customers and brokers. The more people you attract to trade for that broker, the larger the commission you will receive.
How Much Money Make Forex
Getting straight to the point: How much money do you make on Forex?
The answer is unlimited, from 5-10% of capital per month to doubling your account within 1 week is possible.
However, this depends on many factors from the economic and political situation to the trader’s ability.
Factors That Affect How Much You Earn Forex
- Capital amount
Capital size will make quite a difference in finding the answer to how much money you can make on Forex. The potential of a capital of 10,000 USD will certainly be much higher than that of someone with only a capital of 100 or 1,000 USD because of the opportunity to leverage and effectively use many tools, trading more currency pairs at the same time.
- Transaction form
In addition to common leverage trading, traders can also optimize income sources by creating many different forms of trading such as using trading robots (expert advisor), copytrade, etc. With more options , traders have the opportunity to have additional sources of passive income in addition to regular trading. - Trading style
There are two factors when it comes to trading style in how much money Forex makes: Volume and holding time. With trading volume, the number of lots you spend on each large or small trade will affect your profits. Normally with a capital of 10,000 USD, the ideal and easy-to-manage volume is usually around 0.01-0.04 lots.
With the time of holding an order, Day Trading or Scalping will also expect different profits. Traders can “accumulate little to make big” with many transactions on the M15 or M5 frame and expect more with the H1 day D1 frame.
- Experience
Setting expectations also needs to be consistent with experience, it is difficult for new traders to have the same success as veteran traders. Profitable trading strategies, systems and approaches sometimes take years to develop.
Besides, the time you spend trading also largely determines how much money you make in Forex, full-time traders will have more time to trade than those who only see this as a side job.
Tips to increase profits
Understanding that how much money you earn on Forex depends on many different factors, traders need to optimize the factors they can control, which is themselves. Here are the essential tips to get the highest win rate:
- Use a capital management platform
Not only with foreign exchange, a person who can manage capital well in any market is certainly a factor for success in the near future. The question of how much money you can make in Forex won’t make sense if you don’t do it well. Trading diary, managing declines, determining full TP and SL, etc. are things you should practice regularly to avoid being influenced by emotions. - Profit comes with discipline and knowledge
When investing in Forex, drawing up a plan and process for 1 day/ 1 week or 1 month of trading is necessary and seriously execute it regularly. Regulations on the number of lots and profits within a certain period of time help you get rid of psychological stress or the feeling of “gambling” and greed, wanting to get rid of the problem.
- Prepare for all situations
In addition to setting goals that are not too high, you should also have a backup plan if the market suddenly fluctuates as expected. Calculating the time it takes to recover your account in case of a loss will help you have a clear direction and not get discouraged or easily give up.
Typically, you may only have 5 or 10 qualifying positions per month if trading on a daily time frame. Therefore, so that the answer to how much money you can make on Forex is always a positive number, calculating the number of losing orders you are allowed to lose is also a way to ensure the amount of profit you have earned.
Summary
Through the above information, hopefully you have estimated the number for yourself on the question of how much money you can earn in Forex. Each trader will have a different number depending on the factors mentioned. At its core, making a profit in any market requires basic knowledge and skills. After a period of practice, traders will gain experience and train themselves to be more professional.
