Setting up a realistic trading income goal can seem very difficult because there are different types of factors related to this. Each trader is different because of their different trading strategies, and most investors lose money. Trading is not that easy, and it takes hardship and discipline if beginners want to be successful.
It is hardly possible to discover what the individual investors make in trading because only a few traders share their financial information, and those who are sharing their data may not tell the truth always. Therefore, we will depend on the data available on the internet publicly to evaluate the acceptable FX income and to set our real goal.
An average CFD investor’s salary is $166,461 dollars to $194,728 by the end of March 31, 2017. But this can be different based on a variety of factors. This estimation here done based on the professional investor and not based on retail investors. It is very tough to find a job as an FX trader because most traders in Mena region believe that conducting trading with self-operation is a good idea.
How much can anyone make with trading?
There is not such a limit on how much an investor can make with his business, and the potential is huge that makes this an attractive career choice. But before we get crazy about trading, we should understand that CFD trading is challenging, and beginners lose thousands of dollars without having a proper plan in the beginning. The possibility of earning millions of dollars may emotionally excite a newbie, but the reality is far from the expectation. To learn more about the reality of trading, you can open CFD demo account with Saxo and see the market reactions.
It will be a wise decision if amateurs can calculate their income in advance because taking advantage of huge leverage can diminish the chance of making a profit drastically. But these issues are not considered by most of the traders, which plague them by making their accounts zero at last. The great thing is keeping a risk management plan can lessen the potential of sudden losses to a great extent.
For instance, if someone has a $10,000 account and takes 1% of the risk, then the risk will be worth $100. If he has the possibility of making a profit of 30% of his investment, then he will never lose more than $100 in case of loss as he is taking a risk, which is not more than 1%.
But there are so many indicators that should be taken under consideration to calculate risk rate, and to solve this problem, there is a popular method of estimating risk, and that is called the risk to reward ratio. An ideal rate of measuring risk to reward ratio is 1:3, and experts take this calculation method so seriously always.
Forex income compared to real estate’s
It will be very easier for us to set out an FX income goal if we can be able to compare it with the real estate’s income. For instance, someone might take the goal of 2.5% profit of his total investment. To attain success here, he may invest $100,000 for purchasing a house, including the upgrade cost. Now he may try to sell the house in 2.5% of profit, and that will be 102,500 in total. FX trading is a business like that where we are selling the currency pairs to gain more profit later. Therefore, we must make a plan so that we can take precautionary when the market is down.
The bottom line is that investors can really make a high income in the Forex marketplace, but it will only be possible when they will try to sharpen their strategies. Without having a foolproof plan regarding Forex income goal, making satisfactory earning is not possible in this giant platform.