Written by: PaxForex analytics dept - Wednesday, 08 October 2014 0 comments
One of the main questions that sound immediately after beginner’s meeting with Forex is "How much on average I can make on this financial market?" There aren’t absolutely clear answers to such questions. It’s the same as asking business owners on their average earnings. Everything is relative.
You can be the owner of the factory and receive multimillion-dollar benefits, but you can have a tent on the market and could barely make ends meet.
Forex can be considered as a business, and therefore the amount of profit here is purely personal. All of this is entirely dependent on such components as the amount of capital invested and the strategy of trading a trader uses there. Of course, there are certain standard features, through which we can express the amount of possible earnings. As a rule, it lies in a relation of percentages between deposit and profit.
The approximate amount of profit on Forex, depending on the strategy
1. Long-term strategies - traditionally bring a maximum of 3-5% per month, therefore, require a large investment. But they are also the least risky, as traders in this case use mostly their own funds and leverage very rarely exceed 1:10.
2. Intraday trading – brings about 10-20% per month. However, there are chances to get more impressive results, although usually traders rarely manage to
overcome this threshold. Although even 20% of the benefit is not so little, especially if you reinvest all the profits: then this method can bring up to 400% per annum.
3. Scalping - it is about this method there are many legends among Forex traders, although successful investors using this strategy can be counted on the fingers. Profit with Forex scalping may be more than 1000% per month but we must to repeat – chances to reach this by using scalping strategy are very low.
Thus, we can calculate the average earnings prospects that open with a deposit of $ 1,000:
When using a long-term strategy - about 30-50 dollars a month.
In intraday trading - from $ 100-200 per month.
Scalping can bring up to 10 000 per month.
The bulk of traders choose the intraday and long-term strategies, increasing their own profits at the expense of not risky strategy but with the help of additional funds (from broker or investors).
It is because of investors’ funds most billionaires made their incredible profits. For example, the same George Soros, who is considered to be the owner of a hedge fund, holds great deals on other people's money.