Trading is one of the most lucrative professions in today’s world. Those who have mastered the art of trading is leading their dream life without any hassle. But making a consistent profit in the Forex market is not so easy. Unless you have extensive experience with the technical and fundamental parameters of this market, you will have a tough time in the trading profession. The new Aussie traders often say, how much money they can make a profit this market. Well, the answer greatly depends on a few important factors. After reading this article, you will understand how much money you can make from this market profession.
Depends on your trading skills
Those who are experienced in the retail trading industry is most likely to make more profit than the novice trader. An experienced trader can easily find high-quality trades even at the complex market condition. On the contrary, a new trader will have a tough time to protect their investment. If you analyze the success rate of the Forex market traders, you will be surprised to know only 5% of the retail traders are making consistent profit from this market. So, never expect to make a huge profit from this market at the initial stage. Consider the first year as your learning period and try to create a perfect trading system.
Depends on your investment
If you invest a big amount of money in the CFD trading industry, chances are very high you will make a decent profit. On the contrary, those who trade the market with a small amount of money makes a very small profit. Some of you might say, the leverage trading account offered by Saxo can solve this problem. But do you know leverage can act as a double edge sword? In fail to manage the risk exposure in trading, it won’t take much time to lose your investment. Being a beginner, you should never trade the market with a high leverage trading account. Follow the conservative trading method and you will eventually get better at trading.
Depends on your trading strategy
If you scalp the market, you will be executing trades with big lots. By taking a huge risk you can easily earn a decent amount of money within a short period. On the contrary, the conservative traders never risk more than 2% of their account balance and thus they make from small profit. Does this mean the conservative traders are using a wrong strategy? According to the pro traders at Saxo conservative trading system is the most effective way to make money in the trading business. It allows traders to trade in a stress-free environment. Being a novice trader, you need to understand the fact, trading is all about managing the risk exposure. So, never trade the market with the aggressive trading system since it will increase the risk to a great extent.
Control your emotions
By now you must have a clear idea about the profit controlling factor in the retail trading business. No matter how much money you have in your trading account, you should never trade the market with emotions. Emotions are often considered as the deadly enemy for the retail traders. Always try to execute the trade by using proper logic and never risk a huge amount of money. Profit factors should never be your main concern. Try to reduce the risk exposure in every possible way and execute the trades by using proper logic.
Learning to trade the market is not all hard. If you follow the basic rules, it won’t take much time to develop your trading skills. But when it comes to determining the profit factor, you need to control your greed. Never become too aggressive with your trading system since it will result in heavy loss. Follow the conservative trading technique and take help from the senior traders. And never lose hope after facing a few losing trades.