Author Archive: fxtrader

FX Trading In Action – An example of making money in forex trading

Here is an example of how you can make money with FX Trading while winning only 40% of your trades. FX Trading Systems are important and help you succeed. Hopefully, this trading scenario will hel you!

Lets set it up…

Suppose that you decide the following:

  1. You will trade Monday – Friday
  2. You expect to loose 60% of your trades and win 40%
  3. You are aiming for risk:reward ratio of 1.0 : 2.0
    (that is, for ever $1 you risk you expect to make back $2)
  4. You will be trading on a $300 micro account
    (in an effort to continue with our micro account currency trading example)
  5. You will risk no more than 2% on any given trade, or $6. That means, for every $6 that is risked, you will be aiming to make $12


How To Trade Currency and make $5,000 per month part time

You can make $250/day, which equates to $5,000 per month over 20 trading days in the forex market. Assuming you have a good forex education and enough practice, the big question then becomes: how much money should you start with?

Well, lets see how this looks:

  • A typical stop loss should be at least 30 – 60 pips. For a standard account (at one lot), that equates to a potential loss of $300 – $600 on a trade.
  • If you plan to trade one standard lot and make $250 per day, you will need to capture a net gain of 25 pips. This is very realistic with a standard account.


Trading Forex – How to Make Money in Forex Currency Trading

Most beginning Forex traders will commonly ask about how much money they can make Forex Currency Trading as they learn more about this lucrative market. Naturally, you want to make money (and, a lot of it) in your Forex Currency Trading. That said, it is very difficult to answer this question because there are many factors that play into how much money you can actually make in the Forex Currency Market:

  • What is your tolerance for risk?
    Forex Trading offers plenty of risk due to leverage and volatility. If you don’t have a plan and trade with a solid understanding about leverage and equity management, you will encounter significant losses. Are you prepared for this?