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Average Monthly Profit of a Forex Trader
The average monthly profit of a forex trader can be as high as 5%. The average monthly profit of a forex trader can be as high as 1.5 times the risk, but it is not always that easy to reach such a level. Profitability depends on many factors, including your personal trading style, amount of money, and level of risk. For example, if you have just started forex online trading, you may find it hard to achieve this goal in your first few months.
The typical new forex trader will have an unrealistic expectation for his or her profits. They will want to turn their account into a multi-million dollar account in just a few months. While most new traders may dream of earning a million dollars in a year, the reality is much different. Most successful traders make a lower average monthly profit, ranging from 3% to 7%. Those who make a 10% monthly gain can double or triple their account each year.
While a 33% return on account is great, it is not possible to achieve this level every single day. Many traders give up too early on profitable trading systems. They do not stick with them for long enough or do not practice discipline. Even the most successful traders still lose a lot of trades. This is why the average monthly profit of a forex trader depends on many factors, including the trader, trading system, and market conditions.
Despite the high risks and potential for large profits, it is vital to manage risk properly and recognize market stages. If you lose 20% of your account every month, you'll be in trouble. And if you miss trades and miss profits, you'll end up losing a substantial percentage of your account. However, the average monthly profit of a forex trader is well over $1,000! The only way to truly profit in the forex market is to manage risk properly.
Economic news is another way to stay informed. Forex traders should follow economic events closely. The GDP reports of a country are often followed by leading traders. These reports give an indication of the strength of the country's currency. Besides the data, a forex trader should be aware of the unemployment rate and overall payroll numbers. This report is particularly important for beginners. The average monthly profit of a forex trader depends on their ability to predict economic data and identify opportunities.
