Your Forex monthly returns can either be zero, $1000, $5000 or more. Before you get overly excited with Forex return calculators, you need to understand how to do the correct thing consistently in order to make $1000 per month or more.
But before we can discuss this topic, we must address the question of how much do professional Forex traders make in a month?
Or let’s even put it like this: can you make a living trading Forex?
The answer is yes. However, there is just no realistic figure to give you at the moment since making money as a trader depends on a lot of factors.
Perhaps I can give you my story which you can relate to very well.
In the beginning of my trading career, I used to make $150-$200 out of a $350 account. Over time, I grew that account till it started bringing me $1000 per month.
For me to write this to you now, it means that definitely I have seen massive success over the 7+ years that I have been trading.
I won’t reveal the exact amount that I make as a trader today. What I will tell you is that it is possible to make a living trading Forex.
How much do professional Forex traders make?
A good return would be 5% per month. 5% might sound like a very small return though. However, let’s say you are trading with a $10,000 account. If you were to maintain a 5% monthly return, your monthly income would be $500.
However, if you use a clever risk reward strategy and trade less often, then you can still make big returns even with a small account. (Read my thoughts here on whether or not you can make it with a small account).
I do not mean that you should take huge risks while trading. I do not teach risky trading behaviors. I also do not teach my students to over-trade. In fact, the less frequent you trade, the better it is for your account.
Therefore, before we become too fixated with average Forex trader income, we should ask ourselves what factors determine our earnings and whether or not we can use a benchmark to establish the average income that a Forex trader can make in any given day.
This question can be tackled in two ways:
Let’s consider these two scenarios and what we could possibly earn.
Trader A starts with $500, the same as Trader B. However, they are using different trading strategies to achieve their goal. They are both good traders.
However, Trader A is conservative. Because he is not taking any risks, he can only make $25 or $50 per month (assuming his monthly ROI is 5-10%.
But because in Forex we trade with leverage, let’s just say that this trader can make $150 per month but definitely not more than $200.
Now, Trader B is also a conservative trader who doesn’t take risks and does not over trade as well. To preserve his account, he uses a good risk reward ratio for each one of his trades.
A good risk reward ratio should let you maximize your winners. You can say that for every $50 that you risk, you will make $300 dollars. You can learn more from this article.
Therefore, if in any given month this trader becomes lucky with two trades that have a good risk reward ratio, he will easily make $600 in that month.
What you can conclude from these two scenarios
It is quite difficult to say how much a Forex trader can make per month.
However, it is quite possible for anyone to make a living trading Forex. I am a living testimony and proof that you can make a living trading Forex.
But before you can get there, you need to consistently do the right thing which includes getting properly educated and implementing your trading edge in order to start making a substantial monthly return.
P.S: You can also use my Forex and Cryptocurrency trading signals. Learn how
Author: Warren Ouma
Warren Ouma is a highly regarded Trader, Author, Critique, Blockchain analyst, Investor & Coach with over 7+ years experience trading the financial markets. He currently mentors students from various parts of the word. In 2014, Warren won the Million Dollar Trader Competition, achieving an impressive 250% return. Warren regularly contributes to well known financial websites and publications including Valforex.com, Investing.com and MoneyShow.