It took me 4 years to understand this over and over again. Coz the market and charts somewhat deceiving…. I have not met a genuine trader telling the truth for free …. u r inspiring many newbies in trading…thank u God bless u Rayner. Thank you for this wonderful article. In fact, I figured out myself these 5 metrics in the past few months, but you have put it in a formula.

Thanks Rayner. Have been tutorials a lot boss it has helped me more every time I do I need to discuss some things with u. Great article! I remember when starting, i calculated to be a millionaire within 2 to 3 years… Hehe, well i still have a bit to go after X years of trading.

I must say that your longer time frame approach really has helped me improving my results, since i have adopted your style of Forex trading as much as possible. Brgds and thx.

Gotland Trading. Again Rayner i thanks you for you give me your exprence and trading formula even i will update you as my promise when the day trade experment proformance after i finsh them. Wonderful article, thank you. Most of the time I trade in demo account and still not profitable, every 10 trades 8 lost and 2 win. Presently my broker is FxPro.

Great article. You are right about the number of trades will help to increase total profitability, but traders must be mindful that every transaction costs money in spreads and slippages. So the expectancy calculation must include all those cost. Another excellent article, thanks Rayner! I average 1 to 10 trades per day and use a risk of ruin calculator to compute my position size once weekly.

My goal is to slowly increase my bet size and eventually make k per day. Rayner, once gain Than You for the great article. I have been looking at Risk:Reward as the means to being profitable. I will take this new information to help me reach that goal. Once again. I will withdraw it monthly if there is a profit regardingless of how much. My inner evil will grow greedy and superhero gut and ruin the account.

Basically i feel i can only trade the money i am willing to lose, instead of growing it. So i prefer to deposit more money into the trading account when i am afforded to do so. Totally agreed with the number of trades will increase the probability of profit if your winning rate is greater than losing.

Eventually the losing trades will be covered by winning trades. But, sometime it will be a chance of drawdown and happen the opposite way. Always enjoy reading your article.. simple English great explanations and illustrations on how and why. This really helps for a new learner.

You answer many of my questions, thank you for the sharing. Top Question and at the front of the queue with any new Trader. The way I see it is im unlikely to have the kind of account size to earn a living from trading around my current job.

BUT heres the thing, its about consistency! If you can become consistently profitable with a small account, you can be consistent with a larger account. Ok you might not have that money lying around but dont think about that, its not important. Whatever account size you have doesnt matter. Think consistency and nothing else. Heres my point, If you can trade consistently with a small account you can scale it up. ok get a journal and track record and approach a proprietary trading firm.

Do for them what you do with your account and they will throw money at you and give you half of what you make them.

Consistently Profitable. Rayner good post again bud. Great post Rayner! When I first learned about expectancy it was like a light switch that went off. All of a sudden everything made sense to me, and I had much more confidence in my trading system.

Thanks again for your trading insights! Hi Rayner nice to hear from you. I will make tonnes of money in Forex trading. for the next one year at least million dollars.

I am not kidding. I have to make. if possible please guide me. Thanks Chandru. and because i,ve any question also. Without any risk…please make it clear …. And am not talking about a newbie am talking if i had abount 3 years experience to make 60 to 72 percent and if i read about 20 books and a hundred plus videos and determination patience and all am going to put effort into it.

Build your experience for a couple of years. Good Idea brother lesson first and slow movement towards a settled goal….

Plus they say.. Is being long a currency like being long a stock position… or does it expire after a period of time? is being short like being long a stock position or an option position?? Clear article. What is a reasonable expectancy though? And by reasonable I mean what do competent traders make? Aside from the obvious how much money people can expect to make it is also really important for the psychology of expectation management. I like your examples. Sometimes i laugh a little bit on those examples.

Brilliant knowledge you have. Great post. People should understand that and be more realistic. Hi Tshilidzi. Could you enlighten me and elaborate. My knowledge store has further mitigated. I liked it very much. I was in this trading for 2 years since I lost everything I invested. But I believe that I can recover all that and for that I need your help to restart what I shut down almost 2 years ago.

I am still hopeful for sucessful trading ahead. Thank you for this article. Really its a very nice info. Thank you very much for this. My sincere congratulations. Great content here, you have a nice writing style, and certainly wonderful that you are so well versed in this niche. I will definitely follow your work further.

I am just curious, how many traders do you do per day on average? I understand based on your post that you are a high-frequency trader since you always emphasize massive number of traders that a trader should do to win more. And aim 2 or even 3? That was helpful. Or is that something different?

I definitely need to get better at limiting my risk so I stay positive rather than having to build back to even over and over again 🙂. Hi Rayner, good article. Especially when you mentioned that you need to combine the favorable risk-reward ration of at least and a good winning rate. Or perhaps you are referring this article to day traders or scalpers who executes plenty of trades a day? Pls enlighten. Or maybe you can specify what trading style are you referring to. Because for DAILY CHART TRADERS, trading a lot like or 50 trades per month is very impossible.

Unless you are a gambler or just randomly put trades with no edge at all. Thanks buddy! Their edge is already in place, like you are seeing a lot of confluent pin-bars or engulfing bars.

But in Forex, you need to wait for your edge, and by the way, that edge should meet your favorable risk-reward ratio as well. So I dont really think you can trade a lot to win a lot. I dont even think you can do 50 trades in month or even in a quarter as Daily Chart swing trader, unless you are a scalper.

all of this guys should do backtesting their thing and see results after year…. I enter 10 trades and I excute and profit 10 trades. I just started trading live with real money. For me its a game. I follow all the rules. I test and confirm about 10 rules before each execution. I suggest reading up on how crocodiles in wild target prey.

That same mentality is exactly how to bag each profit target in forex. Watch, watch,watch then launch. Enrolment is closed now. well done Rayner as usual. Another very good informative article thank you Mr Rayner with your teachings I have learned a lot.

Maximum open trades restricted to 18 positions or 36 mini lots. I am a scalp trader. The statistics are based on Myfxbook analytics. Trading period: 82 days. Active: 50 days. Inactive for 32 days because of drawdown and stop-out margin activated not allowing to trade further. Trading Expectancy is com based on profits missed and drawdown even though I have no R:R planned.

Trading Frequency is 12 times based on the active trading activity of 50 days and 7. Trading Strategy: Scalping for TP 18 gross pips nett Strategy for Adverse Trades: NO STOP Loss.

Wait for Drawdown or Account Stop-Loss. Trading to stop if maximum trades cross 18 positions. Trading income nett : If calculate for yearly of days trading then it becomes Trade Length: 2d Profit Factor: 2. hi rayner, i am planning to enrol into flying school and i need to pay for four installments with approximately usd 20k per installment with an average 4 months time between installments.

my question is, is it achievable with fx? I read your Ultimate Guide to Price Trading and other posts. It seems like the content is catered for Forex Trading. Would I be able to apply these trading strategies to other forms of trading such as trading stocks? So I invested last year and opened a Swiss account with £ and this n that by mistake after £ down, phone in pocket it invested half my money into ether run and what was my money became nothing.

It went up over Christmas and then I went into us oil and then that went up but I did forex and lost it all. Very frustrating. I liked your twenty per cent a year scheme.

Makes me want to invest again. I recently bought s new guitar and investing makes you poor but then only need to do it once then you have that. I can keep occupied and stop losses seem stupid just wait til goes back up. I know nothing. Hi I m George. I d rather have money than fame. Thank you. I did pretty well, but I appreciate your conservative logic. hi started trading on demo since july 19 with K. traded multiple currencies for experience and by Oct 19 i had lost around K. Stumbled upon your article and will be back regularly.

When I started I was reacting to market swings. And would panic if I started losing money. Will see long term if this strategy works for me. i am a newbie in the Market, i have read and i am now starting to see the light, i am requesting that You guide me further. Thanks Rayner God bless you….. I have been reading most of your posts in the blog.

I am a foreigner currently residing in Singapore and I have a query on which broker can anyone from Singapore trade with. Can we trade with brokers who are not MAS regulated? But if you have financial liabilities, unprofitable months are going to hurt you differently and ultimately this also ended up affecting your trading as well. Also, as a rule, I withdraw money from the trading account only twice a year. This way I can end my year objectively.

Now think about for a moment, if all of your financial liabilities are depend on your trading income, How would you complete the year in an objective way.

But, Here is the thing — You cannot make a living on a small trading account. For that, you need to grow your trading capital which required lots of hard work. But if we compound his return over 10 yearn he will gain a good amount of money.

Also, we can live on that income too. Trading is a long term game. Since you gain consistent result annually you always can compound your trading result and gain a reasonable return.

So, the first 5 to 10 is the years you have work hard stay patience as well as disciplined. After those hard years, forex trading becomes another — not an ordinary — source of income. For achieve that you need to have a BURNING DESIRE inside of you. Achieving forex trading success is not a linear path. It has lots of ups and downs. The hard works, patience and disciplined is only give you a side push along the way.

It is additional knowledge which helps to span your trading knowledge, yeah it helps but it not the defining factor which helps you to become a professional forex trader.

The answer is, A good trader is not an expert in financial, economy and fundamental analysis side of thing. A good trader is someone who talented at placing and managing trades. So as a beginner forex trader, this is the best way to gain experience out of the forex market. Make sure to get these things right. The more trading opportunities you get, better!

It helps you to get more experience, it helps you to taste winner and loser. You may be thinking what happened it I ended up overtrading. Also, make sure to have a well-organized trading routine. Perfection is not present in forex trading. Therefore never wait for perfect a trading setup to be present. Even it present only a handful of traders know how to take advantage out of it. Hence, keep in mind that every trading signal that valid to your trading system is worth taking.

This engagement allows you to learn forex fast than the rest of the trade who wait for the perfect trading setup to be present.

So what is the best outcome as engagement traders — more trading opportunities and trading frequently. When those opportunities are present you have to be there, available and ready! Remember that engagement creates courage and confidence, these qualities when transformed into habits, are very powerful. Simply put, be engaged with the market with proven strategy and tight risk management in mind. Especially for the beginner trader, engagement is the only cure.

It helps you to master the market. Speaking about trading strategy, Here is one of our trading strategy which is proven and allow us to gain consistent results. The best question is — Should I be Trading Forex? And if so, How Can I Trade Forex Profitably?

I hope you learned something valuable from this article. If so, please help us by sharing this article. Remember, Sharing is caring. Related reading — How to Control Emotions Ups and Down When Trading Forex. Related reading — 17 Unknown Forex Trading Secrets Every Trader Should Know About. Want to learn more about Forex Trading — Head over to our trading blog.

Consider following us on Instagram and Facebook. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. We Are… Trade Revenue Pro. We specialize in reverse trading. More Over Our Trading Technique Enable Everyone, Even Novice Forex Traders to Recognize and Ride the Trend Reversals with Higher Risk to Reward Ratio.

Trade Article. Is Forex Trading Profitable in — How Much Can You Earn Trading Forex. Is Forex Trading Profitable? Simply put, Yes, Forex trading is profitable. This research is done by cooperating with five biggest forex brokers Is Forex Trading Profitable in Leave a Reply Cancel reply Your email address will not be published.

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Many people like trading foreign currencies on the foreign exchange forex market because it requires the least amount of capital to start day trading. Forex trades 24 hours a day during the week and offers a lot of profit potential due to the leverage provided by forex brokers. Forex trading can be extremely volatile, and an inexperienced trader can lose substantial sums. The following scenario shows the potential, using a risk-controlled forex day trading strategy.

Every successful forex day trader manages their risk; it is one of, if not the most, crucial elements of ongoing profitability. That may seem small, but losses do add up, and even a good day trading strategy will see strings of losses. Risk is managed using a stop-loss order , which will be discussed in the Scenario section below.

Your win rate represents the number of trades you win out of a given total. If a trader loses 10 pips on losing trades but makes 15 on winning trades, they are making more on the winners than they're losing on losers. Therefore, making more on winning trades is also a strategic component for which many forex day traders strive.

That is accomplished by using a stop-loss order. For this scenario, a stop-loss order is placed five pips away from the trade entry price, and a target is placed eight pips away. That means that the potential reward for each trade is 1. Remember, you want winners to be bigger than losers. While trading a forex pair for two hours during an active time of day, it's usually possible to make about five "round turn" trades round turn includes entry and exit using the above parameters. If there are 20 trading days in a month, the trader is making trades, on average, in a month.

In the U. For this example, suppose the trader is using 30 to 1 leverage, as that usually is more than enough leverage for forex day traders. Forex brokers often don't charge a commission, but rather increase the spread between the bid and ask , thus making it more difficult to day trade profitably. This estimate shows how much a forex day trader could make in a month by executing trades:. That may seem very high, and it is a very good return. See below for more on how this return may be affected.

It won't always be possible to find five good day trades each day, especially when the market is moving very slowly for extended periods. Slippage is an inevitable part of trading. It results in a larger loss than expected, even when using a stop-loss order. It's common in very rapidly moving markets. This is a high estimate for slippage, assuming you avoid holding through major economic data releases. You can adjust the scenario above based on your typical stop-loss and target, capital, slippage, win rate, position size, and commission parameters.

Most traders shouldn't expect to make that much; while it sounds simple, in reality, it's more difficult. Most day traders can have a reasonable level of success trading forex for a couple of hours each day.

Of course, the more time you devote to it, the more potential profits you can make. Because forex markets cover the entire world, it's possible to trade forex 24 hours a day from Sunday evening through Friday afternoon.

ET and continue trading as other markets open and close through Friday at 4 p. Stocks offer a greater variety of options and risk levels than forex trading, but they require much more capital to get started. Forex also allows trading 24 hours a day, while stock trading times are more limited. You can make money or lose money in any market, so what's most important is to know your particular market and how to trade effectively.

Admiral Markets. OANDA Corporation. In This Article View All. In This Article. Day Trading Risk Management. Forex Day Trading Strategy. Hypothetical Scenario. Trading Leverage. Trading Currency Pairs. Larger Than Expected Loss.

The Bottom Line. Frequently Asked Questions FAQs. Key Takeaways Risk management is a critical part of forex trading strategy, usually done with a stop-loss order. How many hours of trading per day do you need to make money on forex? What time does the trading day start on the forex charts? What is better for day trading—forex or stocks? Was this page helpful? Thanks for your feedback! Tell us why! The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles.

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Assuming that the average forex trader is responsible, serious, well-read and patient, what is the average profit? So as a beginner forex trader, this is the best way to gain experience out of the forex market. Download it now before this page comes down or when I decide to stop mentoring. Using the formula of calculating your win rate, your risk percentage, your risk reward ratio — the number of trades will give you an estimate of how much you can make a month. Thanks for sharing YJ.

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