As a legit trading and investment opportunity, forex trading is a good way to earn consistent profits daily. However, don’t fall into the trap of believing that forex trading is some kind of get-rich-quick scheme. Forex trading is not something that will deliver you massive profits for the small investments you make in the forex market. It requires certain strategies for you to earn consistent profits from forex trading, and you will need to polish your strategies from time to time if you want to achieve this goal.
It’s possible for new traders to earn consistent profits from their forex trading activities. This guide will provide you with some useful information about the forex trading profitability.
Day Trading Forex – How Much Profit Can You Expect?
Forex day trading is the type of forex trading activities that many traders are doing to earn consistent daily profits from forex. So, how much profit can you expect from your forex day trading activities? For most traders, they can expect around 5% to 15% profits per month from their daily forex trading activities, and to achieve this goal, you don’t need to put a massive investment into it.
New traders can put as low as $500 as their forex investment and conduct the day trading activities to earn at least 5% profits per month. However, to earn this amount of profit in your forex day trading, you need to use the best strategy. Remember, there are risks of losing your investment if you are not careful in your forex trading activities.
Can Beginners Earn Good Profits from Trading Forex?
The answer is yes, beginners can earn good profits from trading forex if they can apply the right strategy in their forex trading activities. For beginners, there are often some learning curves they need to go through before they can earn the steady profits from their forex trading activities. Thus, for the new traders, you can expect to experience some losses at first, just to help you learn about the forex trading market and how it works.
A good way for beginners to earn good profits from trading forex is to stick with trading popular currency pairs, such as EUR/USD or USD/EUR, buying and selling these currency pairs when they have the chance to earn some profits from the transactions. The popular currency pairs often have quick movements in the forex market, which is quite easy for new traders to make some daily profits from trading these currency pairs.
Best Strategies for a Successful Forex Trading for Beginners
What are the best strategies for successful forex trading for beginners? There are various ways you can approach forex trading if you are a new forex trader. Forex day trading is the most common one, and you can expect to earn small profits from your daily forex trading activities with this method. Here are some best strategies for a successful forex trading for beginners:
- Using the win/lose ratio. With this strategy, you will need to trade various currency pairs per month. For instance, by trading for 90 currency pairs per month, you can expect to win on some trading transactions and lose on some others. You can always make nice profits if you can keep the win/lose ratio above 60%, which also means that you need to pick the currency pairs you will trade each month with extra care.
- Trade with the popular currency pairs. Popular currency pairs are your best way to conduct forex day trading, as they often have fast movements in the market. With their fast movements, it will be easier for you to buy these currency pairs at the lower price and sell them at the higher price in a short period.
- Using leverage to your advantage. You can also win bigger in your forex day trading activities if you can use leverage to your advantage. Be sure to use your leverage when you see a big potential profit in certain currency pairs. However, keep managing your risks when using the leverage in the forex market by keeping it at most at 1:10 ratio.
- Using the global trends. Global trends can also give you some opportunities to earn profits from your forex day trading. Sometimes, currency pair prices can move up and down in a quick succession following some global events, global news, media hypes, and so on. You can take advantage of these events to make some nice profits from your forex day trading activities.
- Copy trading. Copy trading is the feature from certain forex broker platforms you can use if you want to profit from your forex trading activities with ease. With copy trading, you will follow the trading strategies from top traders and earn the same profits as them. However, keep in mind that you can lose in the same way as the traders you have copied.
How Much Time Should You Spend on Forex Trading per Day?
Forex trading is the online trading activity that you can do at any time during the day, and it offers flexible work hours for you if you plan on doing it as your day job. Two hours are often enough for you to conduct your trading activities in the forex market. You can do it any time during the day, depending on the market region you are using. However, it’s also important for you to spend some time to check on various market movements during the day to spot some potential profitable trades for you.
You have learned about the profit potential you can make from forex trading. Just like any other business endeavors, you can either make small profits or big profits depending on how you conduct your forex trading activities. Some strategies can only lead to small profits, while some other strategies might lead you to big profits. However, the bigger the profit potential you can get, the bigger your risk of loss will be.
So, calculate your potential profits in your forex trading activities with utmost care. It’s better to earn consistent small profits than to risk losing all your investment just to get the bigger profits from your forex trading activities. Good luck!