How Profitable is Forex Trading?

percentage and up-down symbol essentially depict forex trading profitable or not.

From the very beginning, Forex trading has been a lucrative place to earn money. Traders enter the market, trade, and try to make money as much as possible. Isn’t it that simple? No, it is not! In this whole process, most of the traders fail and tag multiple question marks on foreign currency trading. So, before going through the main question, first, we need to clarify whether forex trading is really profitable or not.

Is Trading Forex Profitable?

This is the first question a trader can have in his/her mind while starting or thinking of starting FX trading. Well, it has been a debatable question for a long time because many traders/investors have been trading for a while and most of them haven’t seen the face of success in currency exchange trading. Their bad experiences with forex trading have raised questions about trading forex as a good investment.

Before investigating the reason why traders have bad experiences in foreign exchange currency trading, look at the forex market closely. You will see that the market is trading daily at around $6 trillion in volume and traders are being profited in the market. If it wasn’t the case, the market would have ceased already. So, it proves that the foreign currency market is actually profitable.
So, the next question will be, if forex trading is beneficial, then why do 90% of traders fail in trading?

Is Forex High Risk?

Foreign exchange trading is extremely risky, although they are limited to percentages of one point. The amount required to make a meaningful profit in forex is substantial, which is why a lot of traders use high levels of leverage. The hope is that the leverage will help them make money, but most of the time, it just makes their losses bigger.

Why do 90% of traders Fail in Trading?

Like other types of investments, forex trading has its own risk and profit factors. Like other businesses, it needs planning, strategies, and practices. Just entering into the market with money will not ensure your profits. You will need currency trading knowledge and strategies to have success. Most of traders fail in trading because of their uncontrolled emotions, poor risk management, and unplanned strategies.

How Profitable is Forex Trading?

The answer depends on your trading style and strategies. No fixed number or amount explains how profitable forex trading is. There is a guarantee that after a time, you will not face any losses. Even professional traders face losses during trading. So, it is natural to face losses along with profits. But you can minimize your losses and maximize profits by following certain tactics while trading forex-

Basic Knowledge about Forex

Before starting forex trading, the first thing you need to have with you is basic knowledge about the forex market. There are many factors and terms you need to know while trading in forex. So, knowledge is important. You will find courses and eBooks available online. Get a good course or e-book to learn forex trading.
SureShotFX offers FX Academy and Sure Profit Trading Secret to curious traders who have an interest in learning forex. They also provide a free forex course on their website.

Proper Risk management

Proper risk management is the first and foremost rule in forex trading. Sometimes, traders get greedy and take huge risks per trade. In the end, if the trade goes south, traders lose all of their money and blow their accounts. If trading was that simple, people would leave their jobs and earn money through forex trading! Maintaining good risk management will ensure that you can run in the market for a long time. Don’t blow your account with huge risk. Take risks according to your trading balance.

Consistent Trading Strategy

Exploring different currency trading strategies is a good thing to do but don’t do it with your live account. If you want to learn and find out your preferred trading strategy, you can try with your demo account. After making sure that your trading strategy is good and well enough to make profits, move to your real account and start trading. Keep your consistency in the strategy.

Effective trading tools

It is most important to take an entry at the right time in the forex market to make profits. Besides, you need to find a better range for SL and TP prices. So, while trading in the foreign currency market, you will need a few trading tools to analyze the market to take entry and determine the SL and TP range.
You will find different trading tools like lot size calculator, pip value calculator, indicators, etc. online but you need to choose better tools that will provide you with accurate calculations. Do in-depth research on the available and free trading tools to find out the most effective trading tools. Remember, without effective trading tools, you will not be able to make profits.
SureShotFX has various effective trading tools on its website. Most of them are free. You can have a look.

Emotions in Check

If you look at professional traders, you will see that they trade with a cold heart and fresh mind even after losing money because they know that if they do not have full control of their emotions, they will not be able to recover their losses and make profits. 

Wins and losses are inevitable in forex trading and if you add your emotions on top of that, you will not succeed. Moreover, uncontrolled emotions cast a shadow on your decision-making ability. So, now you know why it is recommended to keep emotions in check.

Following Current Market Issues

Forex-related news is a crucial factor while you are trading because forex news affects the market a lot. If you are not up to date with the trading market, there is a huge possibility that you might end up losing your money. Keep a journal and forex calendar with you all the time.

Good forex signal providers like SureShotFX can also play a great role in making your account grow. With their profitable signals and telegram signal copier, you can grow your account easily. 

Long story short, there is no fixed rule or strategy with which a trader will always be in the win range. This is for sure that forex trading is profitable but how much profit that is only depends on your trading planning and strategies. So, better start trading now by keeping the mentioned tactics in mind.

A Look at What Influences Forex Traders’ Earnings

As we already said, there are a lot of things that can change a forex trader’s income. I want to talk about a few of the most important ones.

1. Trading Strategy:

To be successful in the forex market, you need a good trading plan. A trading strategy tells you how to start and exit trades and what rules you should follow. It helps traders make smart choices based on basic or fundamental analysis instead of their feelings or hunches. There is no one way to trade that works for everyone. What works for one trader might not work for another. So, it’s important to come up with a trading plan that fits your viewpoint, goals, and level of comfort with risk. Traders who have a clear plan can stay disciplined and focused, which are important traits for doing well in the market.

2. Risk Management:

There is a lot of risk in forex trading, so players need to make sure they have a good plan for dealing with that risk. Setting stop-loss and take-profit levels for each deal is part of this. Successful traders know that losses are going to happen and know how to handle them well. It’s important to them that they stay on track with their risk management plan no matter what. Traders can keep their money safe for future trades and reduce the amount of money they could lose by handling risks properly.

3. The market situation:

There are a lot of economic, political, and social forces that can change the forex market. Conditions in the market can shift quickly, so traders need to be able to change their tactics as needed. A trader might use a breakout strategy when the market is moving in a certain direction and a range-bound strategy when the market is staying in the same place. If you want to make smart trading choices, you need to keep up with market news and changes. Big losses can happen if you don’t pay attention to or change the market. Some ways to lower total risk are to limit the amount of capital that can be lost on each trade and to diversify the portfolio.

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