Is forex trading worth it – How much do traders make?
In recent years, technology has advanced rapidly. Almost the whole world was digitized in the shortest possible time, and everyone started researching new jobs on the Internet. One of such deals is Forex trading. Enthusiasts are still wondering – is forex trading worth it or not? Is this kind of business ideal for them, and can it bring them a lot of profit in the future?
Indeed, whether online or not, starting a business is very challenging, risky, and most often tricky. First of all, a person has to do deep research to get an impression of what it is really about and whether it makes sense to enter a particular job or not.
Those interested in Forex and want to know the answer to the question “is Forex trading worth it” must consider one thing. It’s primarily important to read a lot of relevant, educational material and learn what Forex represents to understand whether it even wants to devote its precious time to that business.
To get the desired answer, let’s first learn what Forex represents in general, shall we?
What is Forex trading in general – get all the valuable information
First of all, it is crucial to understand what Forex is. It is an abbreviation of two words: foreign and exchange. It is about the exchange of currency pairs on the largest financially decentralized market, which we will write about later.
Forex trading refers to selling one currency and buying another simultaneously for reasons such as trading, commerce, or tourism. Trading, without exception, is done in currency pairs. Some of the most commonly traded currency pairs are the following:
According to a triennial report from the Bank for International Settlements in April 2019, the foreign exchange daily trading volume has reached an astonishing $6.6 trillion.
The Foreign exchange market – learn about the most significant financial market.
As we’ve mentioned before, the Forex market represents the biggest, decentralized financial market for foreign currency exchange. The Forex market is actually short for the foreign exchange market, with approximately $6.6 trillion daily turnovers. It is a 24-hours global market that is available to traders 5.5 days a week.
Due to its incredible worldwide reach of trade, finance, and commerce, it’s no secret that Forex markets are the largest and most liquid markets in the whole world. It is also essential to understand that Forex markets exist as spot (cash) markets. They also exist as derivatives markets that offer options, futures, forwards, and currency swaps.
However, before you get to know if forex trading is worth it, it’s crucial to understand the role of a Forex broker first.
The meaning of a Forex broker – what you need to know
A Forex broker refers to a financial intermediary or services company responsible for providing traders access to a platform where traders can buy or sell foreign currencies. It is also known as a currency trading broker or a retail forex broker.
Clients of a Forex broker are mostly retail currency traders who are using these platforms in order to speculate on the currencies direction. Besides retail traders, brokerage clients are large financial services companies that trade on behalf of investment banks and numerous other customers.
Forex trading strategies – get to know the most important ones.
Any successful trader knows the importance of sound forex trading strategies. In short, a trading strategy represents a fixed plan created for achieving profitable returns by going short or long in foreign exchange markets.
One of the prominent reasons why perfectly-researched trading strategies help is, above all, verifiability, objectivity, consistency, and quantifiability. Here are some of the most profitable and popular Forex trading strategies that you, as a trader, can consider for your trading business:
- Day trading
- Trend trading
- Position trading
- Swing trading
- Carry trade
- Price Action trading
- Range trading strategies
For instance, if you’re interested in a long-term trading career, your preferred choice should be position trading. On the other hand, if you’re a short-term trader, two strategies that would work perfectly for you would be a trend or day trading strategy.
What is the leading role of a Forex broker?
The prominent role of a Forex broker is to allow customers to trade in numerous currencies, including the ones of emerging markets. With Forex broker usage, a trader is able to open a trade by purchasing one particular currency pair and then closing the transaction by selling it.
For instance, one Forex trader is eager to exchange euros for U.S. dollars to purchase the EUR/USD currency pair. It’s the amount for purchasing euros in dollars.
To close the trade, it’s essential to understand that a trader sells the pair, which is equivalent to buying U.S. dollars with euros. If the exchange rate becomes higher once the trader closes the trade, a Forex trader will make a profit. If not, the trader takes a loss.
So, is forex trading worth it? Let’s find all the relevant information about it, finally!
Should you start a Forex trading career or not?
One of the main questions when thinking about starting a new business is – is it a good idea or not. In this case, is Forex trading worth it or not. The shortest answer to this question is – yes, and it can be worthwhile and profitable to start a Forex trading career.
However, what is very crucial to understand is that, globally, there is no universal answer to this question:
It all depends on the trader himself.
To know if “forex trading is worth it,” it’s essential to answer how ready is the trader to:
- Invest his time, effort, will, and work in Forex,
- Monitor world geopolitical developments that directly affect price movements,
- Be well organized and decide when to trade.
- Find an adequate and relevant forex broker for his business.
- Overcome the potential negative emotions caused by unwanted events in the Forex market and be strong enough to suffer defeat and not give up trading in the first trimester
- Want to learn from the more experienced and successful than yourself and progress in trading every day
- He knows how to choose an adequate strategy that will enable him to make big profits and successes.
- Knows the right amount of money to deposit
- Is willing enough to go step-by-step in a process that requires time, practice, learning, and energy, which will be crucial for becoming an experienced and successful Forex trader one day.
So, each of these items is extremely important to note when it comes to – is Forex trading worth it. Once you answer these common questions, you’ll realize that it can be challenging for some, while it can be a dream come true and a source of immense profits for others.
How much money do traders make?
Whether you are interested in earning on a stock market or Foreign exchange market, it’s always good to know how much traders make and is it worth trading at all. We’ll focus on how much Forex traders make around the world in order to help you decide whether you will start your career in Forex or not.
The primary and shortest answer to this question is that with a reasonable win rate alongside a risk/reward ratio, a devoted Forex trader with a good Forex trading strategy can make between 5% and 15% per month, primarily thanks to leverage.
Keep in mind that starting a foreign exchange trading career is affordable. The amount of money needed is approximately between $500 and $1,000.
The average amount of earnings of one beginner trader per day
According to relevant surveys, the average earnings of one beginner trader per day is approximately 10 USD. Therefore, we conclude that a trader can, at least, profit 10USD per day with a deposit of 2,000 USD if all goes well.
It means that he’ll make monthly profits of 10%, in other words, 10*20 business days will provide them with 200 USD!
Finally, we return to this central issue. “Is Forex trading worth it” to conclude this article and help you embark on this unforgettable adventure that can give you a nice income and satisfaction if you dedicate yourself enough to it?
It all depends on you entirely and how much you are willing to invest time and energy to master Forex techniques. Someone can become a millionaire by doing this business. Someone can earn extra income to enable him a decent life, while someone will barely earn a little money like this.
You are definitely in the black if you start Forex trading, and the longer you wait, the more money you will lose! Try it and see how you manage, and if you are persistent enough, success will not be missed! Good luck!