How Much Money Can You Make Trading Forex?

How Much Money Can You Make Trading Forex?

When trading forex in the sense of how much you can make, you don’t want to think about it in the terms of the amount of money, but rather than the percentage of money for your investment. A good (ROI) also known as a return on investment is the end result of a good trading strategy.

Most traders never actually make a profit, however with persistence you may be able to become a profitable trader. To get a good idea of the max amount of profit you can make you have to calculate the percentage of the time frames that you wish to trade.

Someone who trades only one once a month will have less opportunities to make money than someone who takes many trades a day. That’s not to say that every forex trade is a good trade, sometimes in fact less trades are actually better.

If percentages aren’t your game you can also look at pips as well after you have calculated the (ROI) in fiat for the native currency, based on lot size. Someday’s there may be times where you can get 100 pips, other days only 10. To determine the (ROI) percentage you also have to know the leverage you’re planning to use.

So for the United States you can have a leverage of 50 to 1. 1 pip is equivalent to .01% change add a 50 to 1 leverage every pip is .5% of your original investment. So on a profitable day of 10-100 pips you can be looking at anywhere from a 5% to 50% ROI for one day.

For an investment of 100 dollars that would be anywhere from 5 to 50 dollars. However it’s very important to remember not every forex trade will be profitable. A lot of trading is risk management and the higher volume trades you make the more capacity you have to move the market.

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