How Beginner Forex Traders Make $100 A Day From Forex Trading
- You could have two different Forex traders saying "I make $100/day". In reality, these could be happening:A: "I make $100/day (but not everyday), but I also lose $100 more often than not"B: "I make $100/day (but not everyday), and I do that more often than I lose"C: "I make $100/day for like 2 weeks, and I lost all or most of them in just a few stupid trades"A is a gambler type. Their success rate is very random. They are not investing but gambling.B is a rare kind - only 4% of traders are in this category if we look from the long-term perspective like 1+ year.C is the typical case for most traders. I know a guy who won $50,000 or so but lost $42,000 right after by just two wrong trades and got scared and stop trading.So, now you know that "making X amount of dollars" isn't a good way to benchmark how good a trader is. Yes you can make $100 a day easily if you have $10,000, because $100 is just 1% of $10,000, meaning making $100 is as easy as gaining 1% of your account, but it won't be as easy if your account is only $500 or $1000, in which case you need to gain 20% or 10% return to make $100.
If you’re thinking that you can make 100 a day trading forex in USD EUR then you’d better ponder on it. This is not saying you can’t, this is simply saying that it depends. There are numerous factors to making a profit and it depends completely on the set or future market trends. For example, if GBP USD has registered a slump and forecasts observe a definite resistance in the future, you should look at investing in it even though you haven’t made much head way into the other asset which you have.
A suggestion would be to have two trading accounts instead of one as this will give you the flexibility in making trades beyond the pre-supposed plan which you might have had at the start of the day. To make money day trading forex, you also can keep an eye on other prospects which might end up fruitfully for you. Day trading or scalping is all about adaptability, and you should always have a contingency strategy or plan.
Trading Consistency and Win Rate
While you might find that you can make large profits from some trades that hit the market just right, it's the requirement for consistently profitable trades, day after day, that creates the most difficulty. Some sources say that even expert traders have a trading win rate, or percentage of successful versus unsuccessful trades, of anywhere from 55 percent to 70 percent. A novice trader would most likely have a lower win rate, along with the difficulty of finding enough profitable trades to enter into consistently each day over the span of an entire year.
100 dollars profit equals to roughly 10 pips gain on a trade size of 1 lot.
When we are looking at this a bit more complex, we have to understand that FX returns cannot be measured in absolute numbers. You have to measure them as a % from your account equity. In other words, making $100 a day from a deposit of $100,000 is definitely both possible and safe. Making $100 a days from a deposit of $100 is possible but not safe at all.
Next to this, you should not aim to make profits, but should aim to make consistent profits. You will always have a losing day. Hence you should aim to make on average $150 profit a day, as sometimes you will be closing a day in a loss.
Think of it this way-you can make $100/day doing a lot of different things. If you are reasonably successful at any small business you should be able to make $100/day.
Successfully trading Forex requires that you understand the Forex market, you know how to trade at a professional level and you continually strive to improve and tweak your strategy over time as the market continues to evolve and change.
It is definitely possible but very few people have the necessary skill and developed mindset to do it continuously. If you decide to trade Forex commit yourself and take it seriously and you will succeed.
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