If you believe the annoying advertisements, then to become a wealthy person with no financial problems, you need very little – to become a trader. And immediately, uninitiated people have a question: ‘How do traders earn money?’.
Trading is easy
Indeed, at first glance, there is nothing complicated about trading. You can become a trader without having a higher education in economics. After all, you can work remotely, sitting at home in a cosy environment. You can earn money round the clock, because the Forex market works non-stop.
Profit can be made not only when the selected asset grows, but also when its fall is correctly predicted. You do not need any specific knowledge to open and close a transaction, as it is very easy to work with trading terminals and platforms. You can open and close an order by pressing one button. And if you install Expert Advisor in the trading terminal, it will trade itself, bringing the owner profit while he is resting or doing absolutely other things.
Trading is difficult
Trading is difficultIf everything were so simple, there would be only millionaires around. To successfully make money on the Forex market, you need specific knowledge and trading experience. To open a deal and get a profit, you need to know where to enter the market and when to exit it, having fixed the profit.
In order to choose a good point for entering the market, a trader must have an understanding of the principles of pricing, the logic of currency pairs movement, fundamental and technical aspects of market analysis. Without an understanding of the basic processes occurring at the moment in the market, without the necessary experience, profitable trading is simply impossible.
A robot can do anything?
It is necessary to dwell separately on the issue of automatic trading. Many novice traders, who are not able to trade steadily yet, believe that the situation can be remedied with the help of Expert Advisors. After all, in advertising videos it is repeatedly mentioned how much traders earn using Expert Advisors – more than 100% profit per month.
In fact, everything is far from that. In order to set up an Expert Advisor correctly, you need to know the principle of its work and be able to trade manually to stop trading at the right moment or make the necessary adjustments to its settings. And you also need to take into account the volatility of the market, because in one area of the robot brings profit, but under changed market conditions, it can simply drain the deposit.
How much do traders earn?
There is no significant difference in the earnings of traders. Trading conditions of almost all brokers in the world are the same and differ only slightly. The only thing is that different countries have different laws and taxation of this type of earnings. Therefore, these conditions can affect the final income.
Earnings of a trader per month
What should be a trader’s monthly earnings? What is the best and most correct way to calculate a trader’s monthly earnings? If the profit for a month was 100 dollars – is it much or little? Probably, the monthly profit from Forex trading, it is better to count not in monetary units, not in pips, but in per cent.
After all, to earn 100 dollars in a month with an initial deposit of 10000 quid, much easier than to do it with an initial deposit of 500 dollars. In the first case, you get a monthly profit of only 1%, and in the second case, earnings will be 20%. It is believed that the least risky trading should bring 5-15% of deposit growth every month. Therefore, the larger the initial deposit, the greater the monthly profit will be at moderate risks.
Capital management rules
No matter how hard a trader tries to quickly increase his initial capital, in case of gross violation of the rules of mani-management, he can lose most of his funds, and sometimes even the entire deposit. It is always worth remembering that the risk per transaction should not exceed 2-3% of the initial deposit.