If you ve been wondering how to generate higher average forex trader returns, then you re not alone. Despite the volatility of the Forex market, there are still ways to earn more money in a week. However, to achieve these gains, you need to be consistent and disciplined. While some people may have a lucky streak that sees them make over 1000% in a week, it s not recommended for those who are new to the market.
Although the average monthly return of a forex trader is around 1.5 times their risk, this figure isn t necessarily achievable for everyone. Several factors will impact your ability to achieve your goals. Nevertheless, your personal trading style will have a lot to do with your return on investment. And of course, the amount of money you are able to invest will have a great impact on the overall return you ll experience.
In the case of beginners, a modest deposit of ten to fifty thousand dollars can yield a monthly return of five to twenty five percent. However, this figure can become significantly higher with more experience and education. Most traders start their Forex trading journey with a view of making easy money. The first few trades may be profitable, but after three to four mistakes, they may end up losing their entire deposits. This is why it s essential to follow the rules of money management. If you follow these steps, you ll be able to generate an income every month, and enjoy the rewards of your hard work.
While the average forex trader returns of three to three percent per day are still good, it s important to note that it s not always the case. The market can change quickly, and you may not have the chance to make five good day trades every day. Moreover, slippage, which results in a larger loss than the expected amount, is inevitable in markets that move rapidly. So, it s imperative to understand the risks and take advantage of any opportunity to maximize your profits.
While achieving 5% return in a week sounds like a reasonable goal, a more realistic return of 1% per week is probably more achievable. While a 5% return is certainly respectable, it also depends on how many trades you make and how dedicated you are to each trade. Remember that every trade has a risk. This could turn into a -5% return week, so even a modest 1% return is a good result.
While using technical indicators can help you develop a good trading strategy, no world-class forex trader has made a fortune using one or two stand-alone indicators. In fact, many of the top traders developed their own evaluation system, incorporating multiple indicators and other data into their trade decisions. Moreover, you should be able to closely follow important economic events, which may impact the value of currencies. With the right trading strategy, you can increase your average forex trader returns considerably.