Could Forex Trading Pay my Bills?

Forex trading is something which can either be done full time or part time, depending on how good you are. Most people start off as part time traders, analysing the markets outside of normal working hours, given that the FX markets are open 24 hours a day.

If they are successful in this regard, they then progress on to become full time traders, making a living of trading of currencies.

However, for practical reasons, we will simply be looking at how the average person could benefit from FX trading in this article. For example – we will look at someone who already has a full time job, and is therefore simply looking to trade currencies as a hobby. Perhaps they might want to pay off the odd bill, or simply have a bit of extra spending money as a result of their Forex trading activities.

How Much Money Could I Make Trading Forex?

The profit potential for Forex trading is endless; however we need to be practical. You are certainly not going to become a millionaire overnight simply with a starting account balance of $10,000. Additionally, it is worth noting that there is absolutely no guarantee that you will earn money from Forex trading. There are a few statistics which actually imply that an overall account loss is the more common outcome with novice traders:

• 90% of Forex traders lose money within their first year of trading.
• 98% of Forex traders quit trading within 5 years of starting.

 

That is a dismal performance rate. This implies that if you are not committed to learning as much as you possibly can about Forex trading, you are likely to make loss after loss as a result of a poor trading regime.

Have an Earnings Goal

There are two things which drive markets – fear and greed. Unfortunately, each is just as bad as the other, and often (i.e. in 98% of cases) – people fall victim to at least one of these (usually greed).

For this reason, if you are taking Forex trading seriously and are investing with the objective to make consistent profits each and every month, you should be able to reach a certain earnings goal each period.

One idea here might be to set a goal to pay off your phone bill as a result of FX trading profits each month. If this becomes too easy, move the goal up until eventually you have a challenging, yet reachable FX trading profit level to work towards.