A common beginner question is “How much can I make trading forex?” or “Can I make X a day trading forex?”. The world of forex trading is a world of feast and famine. There are some traders who easily make six figures in a year, and there are traders who lose their homes trying to make a big pay day.
Your potential daily earnings are directly proportional to the amount of money you have available to trade with. There are other factors that can influence your earning potential, however every other factor is irrelevant if you do not have the funds available to start trading. You will need $100,000 to come close to earning an average of $1,000 each trading day. An average of $1,000 a day is $22,000 a month (There are 22 trading days in a month). We will use $22k/month in our example as monthly performance is a better indicator.
You will need to make a monthly performance of 400 pips and you would need to be trading $5,000 per trade to make your goal of $22,000 a month. Your performance would also depend on a strategy that is back tested then forward tested with low draw-downs.
Perfect execution every month is unlikely for a beginner. You should have a second income to ease the pain of losses. The psychological aspect of trading is profound. Most beginners have a low pain threshold that is easily reached by taking too much risk. A second income will help to ensure that you can make it past devastating losses.
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