Constant training and application of basic rules of a trader allow making this process the main source of income. However, in most cases, inexperienced people lose the deposit made by them.

The probability of such a development is quite high for a beginner trader because this method of earning contains many nuances and pitfalls that can lead a beginner to a complete collapse. It is necessary to assimilate a simple truth: trading makes rather strict requirements to the traders from the point of view of both psychology and strategy search. It is usually not easy for a beginner to find complete information, allowing to achieve regular success. The very process of trading can be compared with ordinary business.

The essential difference is that while conducting his own business, a person is engaged in a specific, familiar to him sphere of activity. In the process of trading, one has to manipulate financial instruments, without deep knowledge of which it is impossible to get a stable profit. The amount of income of different traders fluctuates and largely depends on the initial capital.

For this reason, it makes no sense to consider the possible profit in absolute terms. A more correct value is the percentage of profit. An important factor affecting the income is the practical experience of the market participant, so they should be divided into several categories. Most old-timers in financial markets are convinced that this category of players is only able to lose their funds, thus ensuring a harmless existence of brokers.

Of course, it is impossible to vouch for the reliability of this information. At the same time, statistics is a stubborn thing, and it shows that the lion's share of traders remains at a loss during the first months.

Many of them leave, but the rest of the people, who managed to finalize the chosen strategy during the year, still go to positive trading balance. This category has already learned not only to get to break-even point but also to receive a certain income. The period of time it takes to rise to this level is months. These figures should not be confused with the time really spent on training. The latter depends on the initial level of a beginner, the ability to learn and other circumstances.

One of the determinants of success among amateurs is the trading strategy chosen for them and strict adherence to predetermined rules. However, some traders prefer to use a strategy, which is characterized by moderate or high risk.

Practice shows that higher risks usually have the opposite effect. There are many examples when seemingly successful traders completely lose their deposits in the next few years, having made only mistakes with high risk. But such a result requires a good starting capital, initial basic knowledge, and an experienced mentor.

Only in this case, we can talk about a successful trader. He receives a solid income and has already appreciated all the advantages of this work.

This group of specialists uses trading not only their own capital. Unlike amateurs, investors trust them, giving their investments to management. They are approached by individuals whose financial knowledge is not sufficient for independent trading. Professional traders carefully choose financial instruments for their investments. Their action must be clear to the professional. Only those assets, which practically did not cause any failures, are taken into account.

Any risk can be accepted only if it is fully justified. A significant amount of absolute income is achieved due to large initial investments. These figures also include commissions from investors who have entrusted their funds to a professional. Trading fees are the sum of costs that a Forex trader has to bear during trading. There are optional expenses for those things that a trader wants to buy: for example, news services, technical analysis services or a better connection - and obligatory expenses that everyone must pay.

These expenses vary from broker to broker but usually constitute a relatively small amount. Most often, these are the only trading expenses that you bear. It may sound simple enough, but many traders do not attach importance to these expenses and thus underestimate the difficulty in making long-term profits. It is not always the case that Forex traders do not profit from bad strategies - sometimes bad management or undervaluation of expenses can lead to failure where the results of the trade itself should have led to success.

A trader can better manage his money by learning about the major trading costs he will have to bear. The most common expenses in trading are spreads and commissions charged by the broker for each trade.

A trader must pay no matter how successful the trades are. Variable spreads. It should also be mentioned that the spreads you will encounter depend on market volatility and the currency pair you are going to trade. A change in spreads is common in markets with higher volatility.

Some brokers also charge a commission for processing and executing orders. In such cases brokers increase spread only slightly or do not change it at all, as their main source of income is commission.

Fixed commission - in this case, the broker will charge the same amount regardless of the size and volume of a transaction. The relative commission is the most common type of commission calculation. In other words, the larger is the trade size, the higher is the commission for it.

There are also hidden costs when dealing with some brokers. Among those that are worth paying attention to are: inactivity fees, monthly or quarterly minimums, margin costs and additional costs for telephone calls with the broker.

If a trade is made at night, the trader holding the position also has to pay a commission. These expenses are usually found only in the Forex market and are called night rollover. As a night rollover, different interest rates are added for each currency you buy or sell.

The story of a professional trader who made millions trading for a few days, then lost everything because they were convinced they had found the ''Holy Grail'', perhaps through some specific Forex strategy — when in fact, they just had beginner's luck.

Unfortunately, we cannot expect the stars to always align in our favour. It's important to understand that random events, like 'luck' are unreliable. Without proper trading principals, trading failure is easy. Looking for a place to start? Learn to trade step-by-step with our educational course Forex , featuring key insights from professional industry experts. Suppose that you owned a company, what you would do with your own company? When you decide to start a company, you do not just invest in the first idea you hear about, right?

No, a sensible investor shops around first, and considers various options before committing to anything. Once you're running your business, you probably won't just go with the flow of things either. To make your firm operate effectively, you need to plan, set targets, check progress regularly, and set budgets. The same principles apply to trading.

As with fulfilling your life goals, in meeting your Forex goals, you need to really apply yourself, with a great deal of effort, focus, and determination. As Vince Lombardi once said, "the only place success comes before work is in the dictionary". When you Google something like "Forex monthly return", you may stumble into some outlandish account statements, or claims of people that are supposedly making millions per hour. Don't forget that with every story of extremely successful and rich traders, there is usually a catch.

You might hear a story about a Wall Street trader making 10 million USD a year, and it may even be true. But, what the story may not mention is that the traders manages billions of USD. Those 10 million USD are less than one percent of the total account that the trader manages. Compare that to a 1, USD account, it then amounts to a return of just 10 USD a year!

Before you attempt any form of trading, it is recommended that you do so first within a risk-free trading environment, via a Forex Demo account. This will allow you to try out different strategies, techniques, and timeframes, without putting your capital at risk.

Most stories don't make that fact evident — sometimes deliberately — so ordinary people get the wrong impression. The actual results of this magnitude are very rare. If you doubt the rarity of successful large-scale Wall Street trades , ask yourself, how many times you have seen a Wall Street trader publicly display his or her results? Of course, there are exceptions, but 90 percent of the most successful traders won't share this information, because they simply aren't performing at that level.

There are a lot of traders who believe that a combination of proper capital management and correct strategy application can lead to high returns. But most traders may also sustain considerable losses because they have do not have enough initial capital to get them through to the potential next win.

For the majority of professional traders, the average Forex monthly return is between 1 to 10 per cent per month. Remember: you won't get anywhere near a return on your investment if you don't put sufficient efforts into educating yourself and learning how to utilise the different types of analytical and high quality trading tools that professional traders use.

Admirals offers professional traders the ability to significantly enhance their trading experience by boosting the MetaTrader platform with MetaTrader Supreme Edition.

Gain access to excellent additional features such as the correlation matrix - which enables you to compare and contrast various currency pairs, together with other fantastic tools, like the Mini Trader window, which allows you to trade in a smaller window while you continue with your day to day things.

About Admiral Markets Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today! This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time.

Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Help center Contact us. Start Trading. Trading Tools MetaTrader Supreme Edition StereoTrader Top!

We've all heard stories of a person who perhaps came from a lower-class background, who began trading and was able to achieve success, earning millions in the process. Often these stories are heartwarming and inspirational, and teach us that all you really need to succeed is hard work, determination, and perseverance. The types of stories will also teach us that we have to be extremely focused on our goals, to learn as much as possible every day, and that in the end, all the hard work will eventually pay off.

Real-life stories like this are, of course, extremely rare. There is also another type of story. The story of a professional trader who made millions trading for a few days, then lost everything because they were convinced they had found the ''Holy Grail'', perhaps through some specific Forex strategy — when in fact, they just had beginner's luck.

Unfortunately, we cannot expect the stars to always align in our favour. It's important to understand that random events, like 'luck' are unreliable. Without proper trading principals, trading failure is easy. Looking for a place to start? Learn to trade step-by-step with our educational course Forex , featuring key insights from professional industry experts.

Suppose that you owned a company, what you would do with your own company? When you decide to start a company, you do not just invest in the first idea you hear about, right? No, a sensible investor shops around first, and considers various options before committing to anything. Once you're running your business, you probably won't just go with the flow of things either. To make your firm operate effectively, you need to plan, set targets, check progress regularly, and set budgets.

The same principles apply to trading. As with fulfilling your life goals, in meeting your Forex goals, you need to really apply yourself, with a great deal of effort, focus, and determination. As Vince Lombardi once said, "the only place success comes before work is in the dictionary".

When you Google something like "Forex monthly return", you may stumble into some outlandish account statements, or claims of people that are supposedly making millions per hour. Don't forget that with every story of extremely successful and rich traders, there is usually a catch.

You might hear a story about a Wall Street trader making 10 million USD a year, and it may even be true. But, what the story may not mention is that the traders manages billions of USD. Those 10 million USD are less than one percent of the total account that the trader manages. Compare that to a 1, USD account, it then amounts to a return of just 10 USD a year! Before you attempt any form of trading, it is recommended that you do so first within a risk-free trading environment, via a Forex Demo account.

This will allow you to try out different strategies, techniques, and timeframes, without putting your capital at risk. Most stories don't make that fact evident — sometimes deliberately — so ordinary people get the wrong impression. The actual results of this magnitude are very rare. If you doubt the rarity of successful large-scale Wall Street trades , ask yourself, how many times you have seen a Wall Street trader publicly display his or her results?

Of course, there are exceptions, but 90 percent of the most successful traders won't share this information, because they simply aren't performing at that level.

There are a lot of traders who believe that a combination of proper capital management and correct strategy application can lead to high returns. But most traders may also sustain considerable losses because they have do not have enough initial capital to get them through to the potential next win. For the majority of professional traders, the average Forex monthly return is between 1 to 10 per cent per month.

Remember: you won't get anywhere near a return on your investment if you don't put sufficient efforts into educating yourself and learning how to utilise the different types of analytical and high quality trading tools that professional traders use.

Admirals offers professional traders the ability to significantly enhance their trading experience by boosting the MetaTrader platform with MetaTrader Supreme Edition. Gain access to excellent additional features such as the correlation matrix - which enables you to compare and contrast various currency pairs, together with other fantastic tools, like the Mini Trader window, which allows you to trade in a smaller window while you continue with your day to day things.

About Admiral Markets Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5.

Start trading today! This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time.

Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.

Help center Contact us. Start Trading. Trading Tools MetaTrader Supreme Edition StereoTrader Top! Virtual Private Server Parallels for MAC. Markets Forex Commodities Indices Stocks ETFs Bonds. Best conditions All trading offers Promo Contract Specifications Margin Requirements Volatility Protection Cashback Welcome Bonus New Premium Program New.

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Realistic Returns for a Forex Trader Admirals Oct 5, 5 Min read. Effort, Focus, and Determination Suppose that you owned a company, what you would do with your own company? Back to Reality There are a lot of traders who believe that a combination of proper capital management and correct strategy application can lead to high returns.

Trade With MetaTrader Supreme Edition Admirals offers professional traders the ability to significantly enhance their trading experience by boosting the MetaTrader platform with MetaTrader Supreme Edition. Get all of this and much more by clicking the banner below and starting your FREE download! An all-in-one solution for spending, investing, and managing your money.

More than a broker, Admirals is a financial hub, offering a wide range of financial products and services. We make it possible to approach personal finance through an all-in-one solution for investing, spending, and managing money. Meet Admirals on. TOP ARTICLES. Trade Using the Admirals Forex Calendar in Real-Time.

November 22, Admirals' Forex Economic Calendar allows you to follow the economic agenda in real time and, therefore, take into account fundamental events that tend to impact the markets. The stock market and Forex are driven by two main factors, technical aspects of the market and its fundamentals. That's why the November 22, 35 Min read. The United Kingdom is the fifth-largest economy in the world, while the United States is the largest. With the Bank of England starting to increase in What Is Margin in Forex Trading?

November 22, 9 Min read. You may have heard the term "margin" being mentioned in Forex and CFD Contracts For Difference trading before, or maybe it is a completely new concept to you. Either way, it is a very important topic that you will need to master in order to become a successful Forex trader. In this article, we will

No hidden costs, no tricks. A trader can better manage his money by learning about the major trading costs he will have to bear. Overall, in simple words, it can be said that prices above SMA are considered to be bullish and below it are bearish. It may sound simple enough, but many traders do not attach importance to these expenses and thus underestimate the difficulty in making long-term profits. A more correct value is the percentage of profit. These indicators are said to be lagging indicators, as is it is constructed with the help of the data presented as the end of day prices.

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