Forex Trading Profit Per Day
Trading and profit are interrelated terms. Whenever you think of starting trading, profit will automatically enter your mind. You can trade in different products and make a good profit in the financial market.
Forex trading is amongst the most profitable ways. However, traders have many questions related to profit. This article will address all your doubts regarding forex profitability and provide a detailed discussion of forex trading profit per day.
Here's a quick look at what you'll read
Currency trading profit highly depends on predictions. Traders predict the rise and fall of one currency against another currency to make money from their price fluctuation. Right predictions result in profit, while wrong precision results in loss.
The daily forex profit with day trading is around 0.033 to 0.13 percent. And successful traders made around 1 to 10 percent profit monthly with this strategy.
Scalpers place from a few to hundreds trade in a day, aiming for a profit of 1 to 5 pips per day. On average, scalpers generally make around one to two percent of their profit on a daily basis.
The average profit of swing traders is around 10 to 30%.
Novice trader should keep their expectation realistic and aim for a profit of 1 to 10% in a month.
How Traders Make Money in the Forex Market
The Forex Market is a place where traders enter with the aim of making money from money. Traders exchange one currency against another currency to make money from their price fluctuation.
Currency trading profit highly depends on your predictions. Right predictions result in profit, while wrong precision results in loss. Traders buy when they think a currency will rise and sell when they think it will fall.
Let us understand profit-making with an example. Suppose you have a 1000 USD. Now, you have thought about investing in the currency market. So, you started looking for opportunities.
After studying the market, you will find out that the EURO may rise against the USD in the coming days. So, you decided to buy the EUR/USD at the current rate of 1.10.
Your analysis became true, and the currency pair rate reached 1.15. So your profit will be 1000*(1.15-1.10) = 50 USD. That’s how traders can make a significant amount in the currency market by identifying the right opportunity at the right time.
Forex trading profit per day with different strategies
The trading journey is not similar for all traders. So, how can the average forex trader’s income be the same? Thus, we will be discussing forex income for different traders:
Day Traders
Day trading is a strategy where traders place one to three trades daily. Generally, the daily forex profit with this strategy is around 0.033 to 0.13 percent. And successful traders made around 1 to 10 percent profit monthly with this strategy.
Scalpers
Scalpers place from a few to hundreds trade in a day, aiming for a profit of 1 to 5 pips per day. On average, traders generally make around one to two percent of profit with a forex scalping strategy.
Swing Traders
Swing traders hold a trade for a few days to weeks. Thus, they don’t make a profit daily. The average profit of swing traders is around 10 to 30%.
Position Traders
Position Traders hold a trader for the longest period in a range of a few weeks to months. The profit range can be 10% or more. The strategy requires the least involvement, and the risk is also low compared to the others.
When it comes to profit, there are forex trading success stories where traders have made millions of money in the market. So, one can actually make a huge amount of money with no top limit.
However, with the enormous profit, significant risk is also associated with the market. Thus, novice trader should keep their expectation realistic and aim for a profit of 1 to 10% in a month.
Tips to Maximize your Forex trading Profit
The ultimate aim of every trader is to earn a good forex trading income. However, many people treat trading like gambling and think the forex market is like money-making money. But that’s not the case; making money is not as easy as it looks. Here are some tips that help you make consistent forex income:
Keep track of Fees
To trade in currencies, a trader needs to pay fees to the forex broker platforms. These fees can be in different forms, like commissions, spread, withdrawal fees, inactivity fees, and others. So you should keep track of these fees; otherwise, they will affect your profit.
Consider your strategy
The forex trading profit per day differs from strategy to strategy. Scalping, day trading, and automated trading are highly profitable strategies with significant risk and participation.
Meanwhile, swing trading, position trading, and price actions are less profitable with descent risk. So, select the strategy that fits your profit expectation and risk-taking capacity.
Use Leverage Efficiently
You may have heard of people making huge amounts of money from just one trade and little capital. That’s possible due to leverage trading, which allows traders to borrow money from brokers and place trades much larger than their capital.
In the forex market, brokers give leverage of up to 1:1000, Which means that with $1, you can place a trade worth $1000. Leverage can maximize your forex trading earnings as well as losses. So, if you want to earn a good profit, you must use the leverage facility efficiently.
Select the right pair
Another way to maximize your forex income is to select an ideal forex pair. The profitability rate and percentage for each pair are different. So, analyze the win rate and profit outcome using different pairs.
You can also use a demo trading account for that purpose. EUR/USD, USD/JPY, AUD/USD, GBP/USD, and USD/CNY are some of the most portable currency pairs to start.
Use Proper Risk-to-Reward Ratio
Trading may lead to both positive and negative outcomes. Staying 100% profitable is next to impossible in the financial market. You cannot avoid losses; however, you can keep the amount of loss to a minimum.
Risk to reward is the risk you take to earn a particular amount. So, to make maximum money with minimum risk, you should trade with the proper risk-to-reward ratio.
Choose the right broker
Your forex broker choice can highly affect your trading profit. With the right broker, traders experience excellent market conditions, including proper liquidity, fast execution, tight spreads, decent leverage, less slippage, gaps, etc.
The above qualities directly or indirectly affect the forex profit amount. So, when looking for a broker, check these features first to protect your trading profit.
Wrapping Up
The Forex trading profit per day keeps changing. It depends on strategy, experience, knowledge, currency pair, and many other factors. But overall, currency trading is profitable. You can earn a significant amount with limited capital.
However, you need to consider that there is no fixed forex trader salary. Some days, you may earn a good profit, while some days, you may lose a significant amount. So put your money in the forex market after proper consideration and research.