How much can you make in Forex trading-Set your daily targets
I am on a mission to provide practical solutions to traders out there. I have been doing this trading for some few years now and I have seen the key points that causes failure in trading. This post is not for traders who are hyped up as it won’t be providing any adrenaline rush or even appealing to them, but this is definitely going to speak to the kind of a trader who is looking at building a healthy Forex trading account, this is not meant to be exciting at all. To a trader who is looking for excitement, I am so sorry, you won’t find it in this post. This post is for a trader who is into Forex trading as an investment and actually looking at growing it further, and learning how to protect his/her capital and be sustainable in the markets, the small changes that we make in our daily trading activities can have a huge impact in how things turn out for us, this is not about certain strategies, most of the time, failing has nothing to do with your strategy. If this is you, then keep reading and if it is not you, then you might as well just stop reading now because this is going to sound so boring, too slow and too simple for your liking, investing is not supposed to be exciting and I am also not trying to get you excited.
Every aspiring trader wants to know how much they can make, it is mostly the first question people ask me daily, when they enquire about Forex trading. I speak to many people on daily basis, but most of them are turned off by my honesty, when they ask me how much they can make, I always start by saying ” I don’t know” and continue to tell them the facts and the truth (which is not what they want to hear), most people who are enquiring about Forex trading are always hyped up by what they see on social media (which is not the reality, well mostly). But I am so far, very glad that the people who end up working with me, are mostly the people who are realists, which then makes my work very easy, because I am a realist too (of course it is not attractive in this industry). On my previous post I covered an issue about TRADING CAPITAL and how it can impact your returns/profits. If you have a goal, and your goal is to be sustainable in the market for years and years and you also want to do away with “every trader needs to blow some few accounts before making it” mentality, then you are at the right place right now, keep reading and I hope you do find this post helpful, if you do, kindly share it with your peers, I will try to keep it simple and as practical as possible.
There is a massive range of income potential when it comes to day-trading, but there is also a huge percentage of people who are flooding the markets only to donate their money daily, the latter are the traders who have unrealistic goals and are impatient and undisciplined (discipline is something that each and every trader needs to teach him/herself, a mentor can only do so much and the trader needs to come to the “party”). I promised you to be practical, therefore I will not confuse you with jargon but I will keep it simple, I am a big fan of simplicity. For a clever trader, the table below might appear as a “stupid table” and too slow or too small amounts, but for a trader who is financially savvy (who understands how other investments work), will see a very good plan and not slow at all. If you are trading already, you should try it (you have nothing to lose), go back to your trading account while you are reading here and start planning right away and see if it won’t bring changes in your trading activities (you can thank me later). If you do not have a trading plan, find it HERE. Before you can try to implement this to your own trading, try showing it to your fellow traders, most of them will laugh at you and ridicule you for having such “small goals”, never mind them, just implement it anyway and watch them grinding daily with their big goals and making huge cash while you stick to your plan, at the end, you are the one who is going to take money home soon, while the ones who are chasing dollars keep on funding their trading account from time to time because they got wiped out by one bad trade (we all get bad trades from time to time, but it shouldn’t harm your account).
What if I do not reach my daily target or what if I make nothing?
If you do not reach your daily target but make less or even nothing (there is no loss there), walk away and come back tomorrow, it could be the market not providing trading opportunities or you are simply not seeing your setups ( it happens), tomorrow will come and you’ll trade again and make even more than your daily target, but make sure you do not feel like you have to force yourself to the markets even when the trading opportunities aren’t there and the market is sleepy ( maybe due to bank holiday ), that is something that has to come within you, you have to teach yourself to walk away if you have to, your mentor can give you support and all, but you are the one who is doing the actual trading and it is your money after all, you have to look after it, and you have to be emotionally matured and know when to walk away. Stop putting pressure on yourself, it is OK to trade few hours per day, your life doesn’t have to stop just because you have a live Forex trading account, have a plan and trade smart. I treat my trading account as a private property and that alone, takes pressure away, try to avoid over trading by all means.
I am not going to talk about some risk ratios and refer you to some online calculator that might just confuse you, I am here to keep it simple for you, you can use it or lose it. I am all about simplicity, this is not a fancy formula, but it works, daily targets seems like nothing at all, but wait until you see them accumulating nicely in your account without worrying about loosing all your capital.
Please kindly give feedback (should you decide to use the table), you can do so by leaving a comment, or for your privacy, you can email firstname.lastname@example.org and tell me if you are finding it helpful, see table below with some few examples, you can alter it to work for your own trading capital, this is just a guide, but a guide that has kept me and my mentees consistent, on a bad day, a trader is still not supposed to lose all his/her capital.
Trading capital times 40% (monthly target in percentage) , divide by 4 weeks (weekly target in dollars) and then divide that by 5 days = daily target in dollars. Of course, results may vary, considering other factors or events that lead to this particular event (profit taking) that we are discussing here, sometimes you might not trade the whole 5 days, (which is OK), but I hope you do get the idea of the table.
Thank you for stopping by and reading till the end, I hope it was worth it.
|Capital In your Account||Monthly Target In Percentage||Monthly Target In Dollars||Weekly Target In Dollars||Daily Target In Dollars|
|$500||40%||$200 monthly||$50||$10 daily|
|$750||40%||$300 monthly||$75||$15 daily|
|$1000||40%||$400 monthly||$100||$20 daily|
|$1500||40%||$600 monthly||$150||$30 daily|
|$2000||40%||$800 monthly||$200||$40 daily|