What gains can you expect from trading global currencies and how much effort do you need to make to generate a great second income? In this article I will give you some realistic targets to aim for and also give you an idea of the amount of study and work you have to do to make these gains.
Forex trading is easy to learn and there is no need for ongoing education, once you have a system you are happy with and have confidence in. No system is perfect but if you have a simple system based on charts, you can make a lot of money with it. So how long will it take to learn a simple chart based system? My own view is it will take a couple of weeks to around a month, to learn all you need to know and that’s it – no further study is required.
Many traders waste their time, researching new systems when they get a few losses but all systems will experience losing periods. Instead of swapping systems, if you have confidence in your system trade it through periods of losses with discipline. If the systems soundly based, it will make money over the long term. Short term dips in equity, happen to all traders so accept them, trade with discipline and focus on the long term.
Your system should also be based on following long term price action, if you focus on the longer term, you will find you make more profit and do less work and an hour a day off work can make you a lot of profit.
So How Much Money Can you Make Trading Forex?
Of course, this will vary between traders and systems but here are some general points in relation to how much you can make and the size of equity dips you can expect.
The best traders will make between 30 – 100% per annum and this can be achieved even by new traders. You will see lots of gurus and cheap Forex robots saying you can make 100 – 1,000% per annum and also have very small losses( normally under 5%) but there lying and they don’t achieve these figures.
If you make 30 – 100%, your drawdown will increase with the amount you are targeting typically, if you are aiming for 30% annual gains, your drawdown will be around 10% and on 100% gains it will be about 30 – 50% and periods of losses will always last a few weeks to a couple of months so its important to keep your eyes focused firmly on the longer term – cut your losses and run your profits.
The above is an honest assessment of how much money you can make trading Forex and the time it will take you to do it so good luck and I hope, the above Forex trading advice helps you enjoy long term trading success.
by Kelly Price