How Much Money Can Be Made in Forex?

Diane Holmstrom has a degree in business education, and has been building businesses in the mortgage technology world for over 20 years. Once she discovered “currency trading,” Diane vowed to help make available solid teaching methodologies for new traders. She and her partners co-founded World FX IQ dedicated to bringing reality to the dream of freedom that can be realized through trading. 

How much money can be made in the Forex Market?

Results will vary based on your knowledge, dedication and persistence.  Take the time to become educated. It is possible to replace a full time income with a part time job of trading Forex.

One advantage is that the market is open 24-hours a day! Banks, counties, and individuals are exchanging currencies every minute of the day, with just the weekends off.  You shouldn’t have to change your personal schedule to participate in Forex.  If you are an early bird, the market is open, or a night owl, the market is open.

Unlike the stock market, currency trading has no official openings or closings. It moves in response to geopolitical events, press releases from key central banks, and reports on the economy from government statistical bureaus, among many other factors. When traders are inactive in one part of the world due to nightfall, there are traders elsewhere who are actively engaging in trades as it is daytime in their locations.

A solid education that includes demo trading will perfect your new skills in knowing when to be in a trade and when to be out of a trade – along with how much to risk on each trade. Money is made and lost based on the timing of the entry and the exit of the trade. Watching the price action of the pair IS knowing how to make money!

How much money? No limits – just goals. Set small gain goals for yourself using limited risk parameters so you don’t get hurt. When you have successfully added “dimes” to your account on a regular basis, increase the size of each trade so you are adding multiple dimes at a time! Then you will increases your size even more (when the prior succession of events is positive!), for dollars, tens and hundreds at a time. Stay calm and stick to your plan! How long does this take? Training in the basics; 90 days with commitment – but don’t kid yourself – you will be learning for many years in the World of Forex! Be smart – Get educated! Then trade Forex.

 

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Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

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  • Diane

    Thank you for your kind comments, Krisokenta! You are very smart to do the math and set goals for yourself like that. Forex is the greatest opportunity on the planet!

  • Krisokenta

    Diane thank you for these thoughtful lesson. Taking your advice will make a world of difference to every trader. I did a simple calculation and found out that if I compound $1000 at 10% every week, by 52 weeks I will be making be having about $142,000. in my trading account. ([email protected])
    KRISTOFA

  • pvt1

    You ARE limited to how much liquidity you can extract from the FX market.
    If your FX broker is a market maker (the entity on the backside of every trade you take) they will limit the size of the trade.
    If your broker is an ECN broker you will be limited by the availability of liquidity at any bid or ask price provided by the particpants within the liquidity pool your broker is networked into. Usually, a 3Million position ($300/pip) is the largest position which would be filled. I generally use 2million ($200/pip) per trade order entering 5 trade orders at a time. 5 positions at a time are all I care to deal with. However, that is the equivalent to a 10Million trade order ($1000/pip).
    However, Dukascopy offers liquidity to approx 5million (and generally get the order filled), at least that has been my experience.

    However, no broker outside the US will accept US clients after 18 Oct 2010.

  • Diane

    Thanks G4set! Couldn’t agree with you more!

  • G4set

    sensible comments and realistic I think forex is the greatest opportunity of the decade and many will make a living out of tradeing i woud suggest education and demo account then build up very slowly