According to statistics, the average annual return of professional Forex traders who take big risks ranges from 20% to 100%.50% of the profit from a $ 100 investment makes only $ 50.
In comparison, 50% of a $ 1,000,000 investment makes $ 500,000. It’s pretty easy to see the difference. But can Forex be a viable way to ensure good living, and how?
Can Forex Trading Bring In Enough Profits To Make A Good Living?
Many traders make an excellent living trading Forex, and some have had significant returns that have allowed them to become professionally independent.
A rooky Forex trader can indeed make lasting profits, even with a low starting capital. It takes just enough patience, practice, and learning to successfully generate reasonable profits regularly. And every Forex broker today that wants to go an extra mile in its service offers amounts of free trading materials along with demo trading.
Of course, no one can guarantee you 100 percent regular income, but you can gain profitability consistently once you have enough trading experience.
Then one day, you’ll grab an opportunity that can earn you up to $ 400,000.
Furthermore, a 3% to 4% monthly return could bring you anywhere from $ 12,000 to $ 16,000 on a monthly basis.
It is well enough to live! Moreover, the time it will take depends on your initial balance as well as the aggressiveness of your trading strategies.
You can start small and payoff, but big profits require a significant investment.
Some statistics show how profitable Forex trading can be depending on the size of the investment.
The numbers say it all. For example, among those who increased their profits last month, traders who invested $ 100 or less for a month got an average profit of 23%.
At the same time, those who invested $ 1,000 or more received a profit ranging from 27% to 55%.
Such a difference in the numbers can be explained by the fact that people willing to make larger investments are generally more experienced and confident.
Forex trading can bring big profits, but first, it requires good preparation, practice, development of your strategy, and good risk management.
Which trading method to choose?
Forex traders can be divided into three categories: those who want to trade manually, those who like to copy trades, and those who want to trade in an automated way.
By trading manually, you will experience all the sensations inherent in Forex trading, and you will have full control over your trades. It takes a lot of time, attention, and precision because all orders are carried out by yourself without any automated support.
Manual trading is exciting and allows you to always be aware of the situation in the market. The fact that it all depends on the trader can generate stress if many orders are opened simultaneously. However, it is always up to the trader to decide whether to trade or close a position.
On the other hand, automated Forex trading spares you from an over emotional approach. Which is a big advantage for new traders. You could trade with the help of robots even when you are away from the screen and cannot follow the charts.
Copy trading is currently one of the biggest trends in the investment world. Unlike many other passive income sources, copy trading is available to ordinary people who do not have significant investment capital.
Copy-trading allows you to copy a professional’s strategy. A trader signs up to copy the trades of a professional trader. And in this case, the trader hardly takes part in the trading process.
All three methods have equivalent benefits and can sustainably bring benefits. Choose the one with regards to your time availability, experience, and initial capital.