FX Currency Trading

Can I make 6 figures trading forex?

Absolutely, you can definitely hit and even exceed the $100,000 mark with this incredible market. Making 6 figures is definitely possible if you trade with your brain (objectivity) instead of your heart (subjectivity)!

Lets break this down and see how we could theoretically achieve a 6 figure income out of the forex:

  • $100,000 = $8,300/mo (approx)
  • $999,999 = $83,300/mo (approx)

So, in order to make six figures, you need to make $8,300 per month on the low end of this scale and $83,300 per month on the higher end of this scale. This is very possible with the forex market, but a lot depends on:

1. How much capital you have, and
2. Your level of skill & experience

If you’re well capitalized, you should be able to make your daily trades without assuming too much risk so that you can reach your goals.

I’ve written extensively about managing risk, being well capitalized, etc in other posts on this website. Here are two that should help you determine how much money you’ll need to trade with, based on your risk profile and how much you want to make (that is, between the range of $8,300 and $83,300 per month).

How much money should I start trading currencies with?

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

Read through these articles to learn and understand more about how to plan your trades and determine how much capital you’ll need to trade safely.

Best of luck!

Is currency trading in the forex market really worth the risk?

It is common knowledge that most investors fail at finding success in forex currency trading. In fact, it is not uncommon to hear that 90% of traders loose money in this market.

Despite all of this, the currency market is not a trading opportunity you want to turn your back on.

Ironic as it may sound, the market that has left a sour taste in the palettes of many traders still holds great promise. After all, for every defeated investor who populates the failing group, there is a small group of investors who fit squarely into the successful group. It stands to reason: if 10% of forex traders are succeeding beyond the wildest dreams of most investors, there must be a secret to their success. And indeed, there is.

Secrets to Successful Foreign Exchange Currency Trading

Imagine a lifestyle like this…

You wake up early everyday (around 7:30/8:00 am) and enjoy a beautiful breakfast on your patio that overlooks the ocean. You take in the warm, breezy air and soak up every ounce of your relaxing lifestyle. Around 8:30, you head on over to your computer where you’ve installed your foreign currency charting software and you take a look at the forex market for the day’s potential trades. After about 20 minutes of sizing up the market, you see three potential trading opportunities. Two are not quite ready to go as yet and one is presenting itself such that you can plan out and execute a trade right away, but your entry would most likely occur later on in the day. Since you live on the east coast and are dealing with Eastern Standard Time, you can trade at 8:30 am every day and participate in the US session. By 10:00am, you have entered all three trades and now it’s just a matter of waiting to see how they play out. By this point in your trading career, you are confident in creating, executing and sticking with a trading plan so you have no need to sit in front of your computer, waiting for your trades to complete.

How much money should I start trading currencies with?

You can start trading currencies with very little money. Depending on your objectives (and, how much money you want to make), this can be good or bad.

In the case of starting small (with only $300)…

It is true that you can open a Forex Trading Account with a broker with as little as $300. But, as a general rule, you should plan to loose no more than 1 – 2% of your account balance in any given trade. 2% of a $300 account is $6. When you equate your looses to figures (rather than percentages), you can then easily see what sort of account you will be able to safely trade with (and thus, how much money your likely to make).

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