How Profitable is Forex Trading?
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 forex trading. So, before going through the main question, first we need to clarify that 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 forex 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 forex 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 forex trading, look at the forex market closely. You will see that 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 forex market is actually profitable.
So, the next question will be, if forex trading is profitable, then why 90% traders fail in trading?
Why 90% 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 forex trading knowledge and strategies to have success. Most of the 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. There is no fixed number or amount that explains how profitable forex trading is. There is 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 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 risk on per trade. In the end, if the trade goes south, traders lose all of their money and blow their account. 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 risk according to your trading balance.
Consistent Trading Strategy
Exploring different 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 entry on the right time in the forex market to make profits. Besides, you need to find out a better range for SL and TP price. So, while trading in forex market, you will be needed 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 which will provide you accurate calculation. Do the 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 their website. Most of them are free. You can have a look.
Emotions in Check
If you look at the professional traders, you will see that they trade with cold heart and fresh mind even after losing money because they know that if they do not have full control on 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 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 the crucial factor while you are trading because forex news affects the market a lot. If you are not up to date with the forex 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 signals 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.