How Much Do Professional Forex Traders Make?

How much does a professional trader earn? It's the classic million-dollar question. Not only that, it's the question that all aspiring traders ask themselves, as the answer, if correct, would give an idea of the earning prospects. The bad news is that an answer in absolute terms does not exist. It is not possible in any way to provide a figure that applies to everyone and to all situations. There are too many variables at play. Therefore, it is more useful to talk about these variables and how they affect the amount of earnings and, in general, the trader's hopes of success. Experience. Earnings are directly proportional to experience. This is true because experience brings trading skills and abilities. The advice, therefore, is to build a wealth of knowledge and start trading. Earnings will come with time, so it's best not to get discouraged if results don't come immediately. Support. A trader is never alone, or at least shouldn't be. Basically, at least in Forex Trading, a trader can take advantage of the assistance provided by the broker. If they choose more expensive accounts, they may have a personal account manager on their side. Of course, the broker is not the only source of support that a professional trader can use. The community can also be of help. The advice, therefore, is to attend forums and communities (there are plenty of them online). Risk. Risk attitude affects earnings. It's clearly a double-edged sword. If you choose risky markets, profits in case of victory are high, but so are losses. The concept of risk is perfectly embodied by financial leverage, which is a tool that only a professional trader is able to handle without losing capital. Capital. It is perhaps the variable that most of all affects earnings. The reason is simple, and moreover, mathematical. Returns, profits, are represented as a percentage of investment volume. And it's obvious: those who have more capital can make larger investments. Earning 2% of 100 is one thing, earning 2% of 10,000 is another thing entirely. The advice, therefore, is to gather a good amount of money - in the order of thousands - before embarking on the path of trading. Frequency. The frequency with which you invest also has a significant impact on earnings. After all, this is what distinguishes a professional from an amateur, regardless of the field in which they operate. A good compromise is given by automatic trading, which allows you to attend the market uninterruptedly, without requiring a concrete presence during the operational phase. Finally, a clarification must be made. It is highly recommended to be wary of those who talk about absolute figures, of those who say that, thanks to trading and, above all, thanks to the trading service they are offering you, it is possible to "earn X amount in X time". Those who provide numbers, and in particular those who provide high numbers, are lying knowingly. In plain words, they are trying to scam you.