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How Forex Earn a Living trading Forex

Post on: 28 Май, 2015 No Comment

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There are so many get rich schemes on the Internet and Forex is usually high on the list for people that want to make a quick buck or a million bucks and live freely. Unfortunately, it isn’t that easy to make money with Forex and it’s even harder to make money consistently.

How Much Money do You want to Make Trading Forex?

You first need to determine how much you really need to get by and then figure out how much you want to have in order to live the life of your dreams. Let’s say you want to have $10,000 per month to live the life of your dreams. Sure many people want more but at $10,000 you could live a pretty decent life if you played it very smart. Let’s figure out how much you need to earn in terms of pips and the size of your trades and account to achieve such a figure.

The Size of your Forex Account

If you’re trading at a 100,000 units or 10 lots, then that’s roughly $10 per pip depending on the currency that you trade. Say that it is EUR/USD for simplicity as a pip for this pair amounts to $10 per pip at a 100,000 units. To make $10,000 per month you need 1,000 pips a month. To take this calculation a step further, you need roughly 250 pips per week to achieve that. This is a pretty subjective view, but do you think you’ll actually be able to achieve 250 pips on a weekly basis every week?

To figure out how much money you’ll need in your trading account, you’ll have to figure out how much margin you’re willing to take because some forex brokers will allow 100 times or even 200 times leverage. I personally don’t go over 50 times leverage because that’s risky enough so you should really consider how much you’re willing to risk. More leverage means that it’s much easier to hit margin calls.

Figure out how much money you need in your account. For obvious reasons, if you need $10,000 in your account to be able to buy 100,000 units, you probably need more than that to comfortably trade that amount. You should at least have double that amount and probably much more, but if you aren’t comfortable having that much or just don’t have access to that cash then you might need to either consider a smaller trading size or take more risk.

Consistent and Trading Forex

To earn a living by trading forex. you need to be consistent. You can’t simply have a great month or two in a year, you need to focus and learn to earn consistent money month in and month out. It you don’t do this, then you’re in trouble and will have losing months which will eat into your trading profits.

In order to be trading forex successfully, you have to have a sound system that you can rely on month after month, day after day. You also need the discipline to stick to the system and not make dumb trades. Trust me, it isn’t easy.

If you are able to successfully have a solid trading system and have discipline. You should really consider leaving a good portion of your profits in your trading account for future growth. Not only will this give you a solid cushion, it’ll also allow you to have growth in your account. Something you need if you want to make more money trading forex going forward.

Earning a living by trading forex isn’t impossible. But it’s definitely extremely challenging. Figure out how much you want to earn and do the calculations from there. Make it a goal, don’t expect it to happen overnight, because it likely won’t happen. If it was that easy, everyone would be doing it.