There are a lot of people out there, claiming that you can make money on Forex. And that’s true — you can. However, can you make Forex something more than your side-gig? In fact, can you enough money that you don’t need to have a job anymore? Let’s find out!
How Much You Can Make on Forex
Let’s say that you spend 500 USD each month on your living. It’s not that much, mind you, it just puts you firmly in the middle-class. This means, that in order to make Forex your job, you need to make the same amount of money.
The one Forex strategy that most people begin with is Price Action. It is a large timescale trading strategy that is lenient, easy to use, and very much risk-averse. You can spend as little as two hours each day on trading, and still use this strategy to its full potential.
However, Price Action has a problem — it makes you around 20% of your investment each month. This means, that you need a starting capital of at least 2 500 USD to trade on Price Action full-time and afford the middle-class lifestyle.
Scalping is pretty much the opposite of Price Action — it is highly profitable, but risky, and requires you to keep an eye on the charts non-stop. Scalpers make dozens of trades each day and close them in a matter of minutes. Such rigorous trading system allows them to make 200% of their capital in a month. Which makes a necessary starting investment much smaller — around 250 USD.
So, to answer the initial question — you can easily make your living on Forex. However, if you don’t have enough money to use slower trading strategies, you will have to work for it.
How to Earn a Living on Forex
If you are serious about making Forex your full-time job you need to find a good broker. It’s important since your primary source of income will depend on that company. Here are some qualities you should look out for:
- Low spreads. The most important thing. Spreads determine your profit margin, which is incredibly important for scalping. Price Action traders aren’t in such a dire need of low spreads, but it wouldn’t hurt.
- Zero slippage. Slippage happens when your order is being processed for so long that the price changes significantly. Slippage kills scalping, so you need a broker that will not let your orders slip.
- Reliable support. There can be issues with even the best brokers — and when money is involved, you need them to be resolved quickly. Helpful, reliable support is incredibly important and you definitely need it for your primary income source.
There are quite a lot of brokers that satisfy those requirements — after all, they are pretty basic. But if you’d rather start making money right now — check out JustForex. The company has been around for a while and their system works flawlessly. They also have rather lenient leverage conditions and really extensive educational resources for newcomers to Forex.