How Much Can Forex Traders Earn

There are various stages of Forex traders and obviously various distinct earning levels. In this particular article I would like to explain to you the various levels of how much a Forex trader can earn. As you will read on many Forex websites across the internet, a percentage that is thrown around quite frequently is that only 2-5% of Forex traders earn an income trading the Forex market successfully.

The Newbie Trader

This is a person who has seen an advert or possibly is frustrated in their day time job. They may dreams of the glitz and glamour of trading the Forex market for a living and are drawn in. The Newbie trader tends to deposit a very small amount and use the maximum leverage the Forex broker has to offer. They buy and sell randomly, with no structured plan. They make one or two successful trades, but eventually lose.

The Novice Trader

These tend to be the Newbie traders that have come back to the market for a second time, are willing to give the Forex market a second go, and not make the same mistakes they made the first time round. This time they trade with a plan and execute trades with a bit more planning, they may understand slight technical analysis. They tend not to use the maximum leverage, use stop losses, and track fewer currency pairs. They either break even or make a slight loss, but are far from earning a living from trading.

The Intermediate Trader

These are profitable traders, they have many months of trading experience and doing technical analysis, they execute trades will a stoploss, target and exit price in mind, they expose very little of their trading capital, they exercise there trading plan and system like clock work, letting profits run and cutting losses short. The intermediate trader tends to earn about $500 to $2000 per month.

A Good Forex trader

These are Forex traders that have been involved with trading forex for good few years, making consistent profits for many months. They tend to do many trades and only exposing 2% of their capital per trade. These traders tend to be more of data processors than anything else. Punching in trigger, buy, sell and stoploss data and letting the market take its course, they tend to have an excellent understanding of technical analysis and most of their systems they automate so that there is less emotional involvement. They focus on risk reward ratios. These particular traders earn anything from $2000 to $10,000 per month consistently.

The Forex pro

These are the highest earners of the retail Forex market, they usually are ex institutional traders that have been trading professionally as a career for more than 10 years. They have a complete and advanced understanding of all the Forex market mechanisms, they tend to earn on average $10,000 to $200,000, they earn money from affiliate programs, book sales, training courses, Forex trading systems and they develop and guest speaking, consulting etc. These traders are the highest escalate that a trader strives to be, as they are the ultimate in Forex trading success.