Can You Earn Money From Forex ?

Can You Earn Money From Forex ?

This question is one of the most popular questions we have received over the previous weeks; it is also one of the most misunderstood and wrongly answered questions there is within the Forex Community. Throughout this post we want you to know the truth; so, you can have realistic expectations of the Forex Market and what the returns really are.

 

Bit Of Background:

Forex trading platforms work on a leverage system, for example 1:10. This means for every £1 of investment I put into a trade I am leveraging £10 worth of assets. It is important to know this as this means the more you invest the more profit you will potentially earn; however, it is also important to remember that the more you invest and with a good leverage the more you could risk losing.

Profit is earned by the movements captured and the number of PIPS within that movement; based on your investment each PIP will have a value, the higher amount you invest the greater value each PIP will be worth. Again, this will also magnify the losses if you get the trade wrong.

The Truth:

Forex trading can offer a good profit if you are able to achieve a higher success to failure trading ratio. If you were to invest £200 for example and capture some good size movements, you would be looking at a return of say £15 to £30 average return on each trade; again, this is if you are able to capture relatively big movements. Higher investments will create a higher return.

You can earn money from Forex as a form of passive income and to supplement your income; with a large investment and you knowing what you are doing you can earn enough to rely on trading only; but this will take time, patience, discipline, and practice. A lot of traders quit when it gets hard so don’t achieve this ambition.

If you want a different result you need to be willing to push past the difficult times.

Too many trading platforms, educational websites and signal platforms sell Forex as guaranteed income and unrealistic returns. It isn’t this at all. Don’t believe the hype and don’t fall for misleading information. Do your own research, set what you are willing to risk and have realistic expectations.

 

  • Forex trading is not a get rich quick scheme!
  • You can’t learn it over night!
  • It is not guaranteed income!

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