Can You Get Rich By Trading Forex? (Beginners Question)

  • By: Joseph Benson
  • Time to read: 13 min.

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Can you get rich by trading forex? Or can I profit from Forex trading? This is quite a lot of questions that are often asked these days! But this article will clear the air. At joebenz.com, all your questions will be answered in one single click!

Making money by trading People frequently regard forex trading as a scam! Oh no, it seems that forex trading is never a scam! Well.

Can you get rich by trading forex?

Lots of people or traders start trading Forex without knowing the basics, which is in-depth knowledge of the market and how to go about it! Well, I will personally clear the air today in this article because I myself am a Forex trader for over 8 years now, with lots and lots of experience in the industry!

If anyone tells you that forex is a scam, tell that person that they are not a scam! And again, others take forex as gambling. Oh no, far from it, forex trading is not gambling. For your information, forex trading is legal all over the world, or better still, using percentage Forex has a total percentage in the world of 98% accepted worldwide.

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The answer to your questions is yes, you can make money trading Forex, but first and foremost, you must learn the fundamentals of forex trading, such as how forex works and what Forex is.

If I buy or sell currency pairs, what happens? That is what I did. All of this puts them into consideration before starting forex trading, and again, if you want to start forex trading, I suggest you start with a demo account first, and also start with free credit you can afford to start with in real life.

Can you Get Rich By Trading Forex?

What are the safest step to follow?

To be honest with you, if you want to make money through forex trading, you need to have some honest steps to follow! That alone leads you to your success. The most important step to follow is:

  1. Always use stop-loss and take profit
  2. Always keep it simple
  3. Starting small will help
  4. Deal with your emotions
  5. Stay away from greediness
  6. Be contented with your profit

Many people don’t even consider using those triggered devices, if I can call them that. Yes, since I don’t have a better name for it! If you have, you can let me know in the comment section below.

Always keep it simple. This has to do with yourself. Well, by keeping it simple, you will have to accept losses and also accept winning trades even though they may have small profits. Do you know that small profits are better than lost?

Yes, it is better than losing. We’ll try to keep it simple. At joebenz.com, we are committed to helping you understand what forex trading is all about.

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Starting small will help Yes, it is true that starting small will help you become successful. Do not trade with a fund you cannot afford to lose! Yes, and always use 1% of your total starting capital, total money, or total balance, because that alone will for sure keep you going. OK, start small!

Deal with your emotions: it is said that emotions will not only affect your trading but will also drive you out of the market!If you want to trade forex, then you have to learn the best way to control your emotions.

This is the only emotion that will cause you to leave the market simply because the market is not in your favor. After you leave the market at that same time or minute, the market will turn back to your favor and then guess what, you are no longer in the market!

Because emotion asked me to leave the trade with small losses. It is only emotion that will tell you to run, this is not your trade, but oh no, come back later and check the same trade you refused to enter, then the trade is in the money, so make you deal with your emotions.

Stay away from greediness. Are you greedy? If so, then run away from your greedy self! because it will affect your trading life. Yes, you heard me right. Greediness will cause you to lose money during forex trading.

This is what greediness does sometimes. You have to reach your take profit goal, then that greedy spirit will tell you it is not enough to shift your take profit an extra 20 pips, and you decide to listen to that voice and you go ahead to shift it.

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The next minute, the worst thing happened. The trade completely reverses on you and even your initial profits. You lose everything. And then you regret why you listened to that voice. The voice is the greedy spirit inside you. Deal with it now.

Learn to be content with your profits. Yes, small profits can make you more profits when you accumulate them in many packs.

And yes, remember that if you are content with the little you have today, believe me, tomorrow is another day to make it big! A successful forex trader never looks at how small the profits are per trade, so try and be content with your profits and look for big or more profits later in the future.

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Can you Get Rich By Trading Forex?

Successful forex trading strategies 

Imagine being a successful Forex trader. Isn’t it fantastic? This is something that all current and potential Forex traders want. Why are only roughly 5% of people really successful? The choice of Forex software, especially when using certain strategies, is a key part of how you and I can trade Forex successfully.

Forex software comes in a variety of formats. Because there are so many different kinds of software, you should conduct your research thoroughly to discover which program best suits your trading style.

There are two fundamental trading techniques, as you are already aware. One is where you do everything, and basic entrance and exit regions are established using software.

The third way is to use software to decide how to set up trades and when to enter and leave trades. This is referred to as robots or automatic Forex software. Trading online may be challenging without the right tools. There are a few aspects to think about while evaluating Forex software:

  • Management of funds
  • Management of risks
  • User-friendliness
  • An easy-to-use interface
  • Trade in real time via the internet
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The majority of the software provided by brokers or developed independently is charting and signal software. This means the program will show you what’s going on with the charts and may even give you an entry signal.

You must be present to place an order. It normally necessitates a large quantity of your time and work. This method has been used for a long time, and many people have found it to be effective. This program’s cost could range from free to thousands of dollars.

Currently, automatic Forex software is quite popular among Forex traders. Why? Because most have all of the aforementioned features built in, and you can trade 24 hours a day, seven days a week without having to sit at your computer.

Also, good automated software lets you change the trading settings and trade many different software combinations.

This method saves the trader a lot of time and work while still delivering consistent profits. Automated software is preferred by experienced traders because it lets them trade 24 hours a day, 7 days a week.

It appeals to new traders since they do not need to be Forex specialists to be successful in the market. The average cost of good automated Forex software is approximately $200.

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Can you Get Rich By Trading Forex?

How to make money with forex trading for beginners

Forex trading methods are quite popular as a way to invest money in order to profit. Forex trading is all about putting your money into another currency for the purpose of earning more money in the long or short term.

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Many forex trading methods are modeled after the way the stock market operates. You will find that a forex trading method lets you invest at the currency rate you want.

Change your currency to a different one and then invest in a firm based outside of your own nation. A forex trading system is based on international investors and businesses, as well as international currencies. 

An online FX trading method

A forex trading system online will provide the same outcomes as an offline forex trading system, but you will be able to access and see your money more quickly.

While you wait for the paperwork to be finished, you may invest, transfer, trade, and withdraw your money more quickly online using a forex trading system than you can offline.

For investors who are prepared to spend the time learning about their assets and trusting their brokers to make extra judgments, forex systems will develop money.

Which forex trading strategy or broker should you put your faith in?

You want to be able to trust anybody you’re working with, whether it’s an investing firm or a trading system. You’re dealing with the incorrect organization if you can’t contact the forex trading system representative by phone, fax, in person, or even by email whenever you want.

A company that uses forex trading systems and gives you options for investing around the world should be able to get in touch with you at any time of the day or night.

Furthermore, you want to engage with and invest with a forex trading system organization that prioritizes your money and listens to what you want to accomplish and how you want to do it.

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Forex trading firms who phone you often, leave you little freedom to make judgments, and are seen as pushy in your thoughts are forex trading systems organizations you should avoid doing business with in the future.

Any investing firm should recognize that you, as a customer and end user of any trading system, should be allowed to take your time and research any investment before making one.

If someone from a forex trading system comes up to you and begs for a lot of money, saying that you have to do this activity right away, you should be skeptical. Any broker or forex trading adviser worth their salt should provide you with their time and their finest advice.

If you use our free web content, there will be no demands on your time or money. Before you spend any money, choose a forex trading strategy that you are comfortable with.

Can you Get Rich By Trading Forex?

How much do professional forex traders make

To me, there is no specific amount a trader can make daily, but there are a few things to note. It all depends on how knowledgeable the trader is, and also how much the trader has in his or her account and the lot size used in trading.

I’m sure you’re curious about how much money you may earn from FX trading. In the end, traders who make millions in the financial markets are well known. The problem is that you can’t compare yourself to them.

Why? because your account size, risk appetite, risk management, trading strategy, and other factors vary. It’s like comparing an apple to an orange (which is ridiculous). That’s why, in today’s article, I’ll show you how much money you may earn from forex trading using objective measurements.

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There will be no more second guessing. There will be no more ludicrous forecasts. There will be no more illusions. All there is to it are statistics, data, and cold, hard facts. In your trading profession, the most significant measure is

The truth is, your transactions might have a risk-to-reward ratio of 1 to 2. However, if you only win 20% of the time, you will be a regular loser. Obviously, your risk-to-reward ratio isn’t the problem. So, what exactly is it? What’s your success rate?

Let’s have a look… Maybe you have a 90% success rate. You will, however, be a continuous loser if you lose $0.95 for every dollar you stake. So, what’s the answer? Your risk-to-reward ratio and win rate are clearly useless on their own.

So, here’s the deal: To figure out how profitable you will be in the long run, you need to add your win rate and your risk-to-reward ratio. This is referred to as your expectation. Your anticipated return on every dollar you risk will be determined by your expectations.

Why do you need to play more in order to win more? Are you aware of this? The majority of casinos are open every day of the year, 24 hours a day. Why?

Because the more they play, the more money they earn – and the same is true when it comes to trading. “How does this relate to trading?” you may think.

This indicates that the frequency with which you trade is important. You’ll earn more money if you do more transactions (albeit having a positive expectancy).

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Think about this: you have a forex trading strategy that works 70% of the time and has a risk-to-reward ratio of 1 to 3. But here’s the catch… It only sends out two trade alerts every year.

What is the potential profit from this forex trading strategy? 
Isn’t it not a lot? You may even lose that year, as losing two transactions in a row has a 9% chance of occurring. 

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Do you see how critical this is? Although trade frequency is significant, it isn’t enough to decide how much money you may earn in forex trading. There are a few additional important aspects to consider. Continue reading… Why is money so important in your Forex trading business?

You’ve undoubtedly heard tales of traders who took a tiny account and turned it into millions of dollars in a short period of time. What you don’t hear is that for every trader that tries it, tens of thousands of other traders lose their money.

Trading should not be seen as a get-rich-quick plan. Instead, consider it like a company that you want to slowly expand over time.

Let’s imagine you’re able to create 20% per year (on average). 
With a $1,000 account, you’ll save $200 every year on average. 
On a $1 million account, the average annual return is $200,000. 
On a $10 million account, the average annual return is $2 million.

The strategies, risk management, and traders are all the same. The only difference is the amount of money you have in your trading account. Do you see what I’m getting at? 
That isn’t to mean that you can only earn 20% a year; for day or swing traders, the number might be much greater (as you have more trading opportunities).

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But, regardless of the technique or system you choose, the simple truth is that you need money to succeed in this industry. Why does the quantity of your stake impact how much you can win?

You’ve probably heard something similar before…  “The greater the risk, the greater the reward.” Is this correct? In a nutshell, yes and no. This is why I said yes…

Assume your trading technique has a positive expectation and delivers a 20-R annual return. You also have a sizable $100,000 trading account.

So, how much money can you earn by trading? 
Well, it depends on how much money you’re willing to risk on each deal. 
You may earn an average of $20,000 every year by risking $1,000.

You may earn an average of $60,000 each year just by risking $3000.
If you risk $5000, you may expect to earn $100,000 every year on average.

The approach, account size, and trader are all the same. 
The only difference is the magnitude of your wager (or risk per trade). The greater the risk, the greater the reward.

Can you Get Rich By Trading Forex?

How much do forex traders make a month?

We watch skilled traders make millions and live luxurious lives in movies like The Wolf of Wall Street and series like Billions. On the other hand, we have data showing that the vast majority of day traders lose money.

As a result, the topic of how much traders earn arises. We’ve done the legwork for you, comparing hedge fund managers’ earnings to those of normal Forex traders. We looked at traders who work for firms and banks, as well as at individual investors who trade with their own money in the markets.

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As a sole proprietor, instead of being paid a salary as an independent Forex trader, stock trader, or commodities trader, you would trade and invest your money and pay yourself with the profits from your transactions.

Traders who work for corporations might earn a wide range of incomes, based on their precise job title, the company they work for, and even the location they work in. According to data and statistics, the average trader’s salary in the United States is $98,652 per year, plus $25,000 in commissions.

Their highest income amount, though, was $196,917 with Citi Trader. Equities traders made an average of $81,935 a year, according to Payscale, with a bonus of $14,916, a commission of $21,000, and profit sharing options of $6,000.

Their basic salary varied from $47,000 to $160,000 per year. This also depends on your level of experience and how well you understand the basics of forex trading and also how big is your account size is. Apart from account size, how big is the lot size you use while trading?

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Can you Get Rich By Trading Forex?

Conclusion

You can make money trading forex if and only if you follow the rules and precautions stated above. Making money trading forex is fun. My friend writes to say, “Joseph, what is your hit today?” and in reply, I told him my hit for today was 59 pips and he said to me, “I hit 258 pips.” That is amazing!

So, in a nutshell, you can make a reasonable amount of money trading forex every day, but you must follow all of the rules and precautions to be on the safe side. I hope you found this article useful! Want to get more value from me about forex in a video, with strategies and indicators?

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Subscribe to my YouTube channel, Joseph Benson Click Here And if you have any questions or comments, please drop them in the comment section below. Thank you so much. I hope to see you next article Bye-bye, with much love from Joseph Benson.

Updated 29/10/2022

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Can You Get Rich By Trading Forex? (Beginners Question)

Joseph Benson

Hi my name is Joseph Benson, I have been trading forex for more than 13 years now and I am still trading actively. Learn how to trade easily by following my blog

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