Everyone, who comes to the Forex market, almost immediately asks this question to yourself first, and then chatting it on forums or with technical support. Let’s begin with explanation that the profession of trader is practically no different from the others. You should be a professional, as in any other profession. If so, then you earn. If not - you lose.
Do not expect that you will consistently earn on Forex during the first months. Such expectations are not realistic. You must understand that a lot of effort and time you have to spend not only on direct trading skills, on developing your own methods of technical and fundamental analysis, but also on fighting with yourself.
To learn how to earn on Forex you need, above all, learn to overcome two opposing feelings - fear of losing money, and the desire to earn more and more than you already got in a particular transaction.
Over the time, you must learn to act with absolutely no emotion. Profit should not please you too much, as well as losses should not make you upset. You have to act like a robot with your own trading strategy developed according to personal plan.
So how much you can earn on currency market?
It depends on several factors:
- Your risk appetite.
The higher the risk, the greater the potential profit, but at the same time it’s more likely to lose a significant portion or all of the funds. Treat your risk wisely with small amounts (at the beginning of your trading career). This will teach you not to risk without control with big amounts of money.
- Your trading strategy.
Your trading strategy, if it already exists, has a specific set of parameters, among which one of the most important (along with stability) is the amount of profits obtained an average per unit of time (week, month, quarter, year).
- The size of the capital used in trade.
It is clear that the amount of profit that can be obtained on $1000, $100.000 or $10.000.000 varies for the same risk, profitability and other parameters.
So be prepared for the fact that even if you have a very good and established trading strategy and you normally think of the risk, you will need a good and comfortable initial capital. How much? This will depend on your market wishes and trading strategy.
How to start making money on Forex?
Start by registering a Forex demo account. Try out different ways of opening and closing positions in a variety of market conditions.
Learn the classic technical and fundamental analysis. Try to make deals on the basis of technical and fundamental analysis .
Develop a system of decision-making and build your own trading strategy. Give a try to your trading strategy on a demo account first.
If the strategy is completely suits you, then you need to engage in training your own psychology on Forex. To do this, you must go to trade on a real trading account, where you find yourself in "combat conditions."
If you have learned to be equally calm during good times as well as during the time of temporary loses, you can move ahead, invest more to your trading account and start earning much bigger profits.
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