If you are thinking about starting to trade currencies via Forex trading, you likely want at least some idea of how much you really stand to make (or lose) trading in the first place. When you first enter the market, you have many dreams for your career. You know that it is the biggest investment market in the world and you can make your money. However, just because this is a market where traders can make limitless profits, it doesn’t mean that you can make millions overnight.

Majority of the retail traders in the global market have unrealistic expectations. You need to understand that trading is just like running a business. All the successful businessman in the world has their own way of evaluation their profit factors at the end of the month. When it comes to Forex trading instead of looking for a 100% gain from your account size you need to set up a rational expectation of how much you can make. Take your time and do all the necessary calculations since it will save your trading capital in the long run. If you can even secure a 5% profit per annum, then it’s a significant achievement for you as a new retail trader.

You shouldn’t expect to be rich quickly through forex trading; success in this line of work takes time, practice, and dedication. As long as you monitor your trades, maintain strategies, and practice your trading to improve your skills, you can have a successful career in the forex trading market. Staying educated about the fluctuations of the forex trading market is crucial to your success in your trading career. Overestimating profits can lead to disappointment and you prematurely giving up on a potentially lucrative forex trading career and underestimating can make you miss a potentially fatal mistake in your strategy.

There are a lot of traders who believe that a combination of proper capital management and correct strategy application can lead to high returns. But most traders may also sustain considerable losses because they do not have enough initial capital to get them through to the potential next win. For the majority of professional traders, the average Forex monthly return is between 1 to 10 percent per month. Remember: you won't get anywhere near a return on your investment if you don't put sufficient efforts into educating yourself and learning how to utilize the different types of analytical and high-quality trading tools that professional traders use.

As a rule, smart Forex traders who carefully monitor market fluctuations can expect to make 10% — 20% profit annually through Forex trading. It should be remembered, however, that such profits will always be wholly dependent on a trader’s individual ability to preserve their capital, constantly adjust their trading strategy as new information becomes available, and never ever over-trade, even in the face of accidental losses.