You’ve all heard of George Soros, legendary profitable Forex trader of all the times. Meanwhile, ordinary traders achieve incredible results as well. Let’s see who else can be fairly included in the top list of traders.
One who deserves to be among the best profitable traders is Cheng Likuy, who became world famous in 2008. This humble trader from the Chinese province of Shanghai began trading with $400 and set a new Forex profit record. In less than a month he had already 247 thousand dollars on his account. Cheng spent only six months on training. The trader did not disclose all his secrets but said that he had used pending orders.
The most unbelievable story happened in 2012 with Akhmad Arief who made the daydream of millions of traders real. After two weeks of active trading, he managed to increase his start-up capital from $1000 up to $1,000,000. He used an aggressive tactic to trade major currency pairs such as GBPUSD and EURUSD. Nobody expected that he could become a millionaire using a high-risk strategy.
For sure, big profits come with large investment. The average annual yield of professional trader including all risks varies from 20% to 100%. It’s quite easy to see the difference: 50% of the profits from $ 100 is only $50 while from $1,000,000 it is already $500,000.
Can Forex trading bring profits for a living?
Many traders made a good living trading in Forex and some had big returns which allowed them to become self-employed. A beginner Forex trader can indeed make sustainable profits from trading currencies even having low start-up investment capital. It just requires enough patience, learning, and practice to bring a reasonable regular profit.
Of course, nobody can guarantee the profitable income. But once investors have enough experience to trade, they gain consistent profitability. Then appears an opportunity to compound trading account up to say $400,000. Afterwards a conservative 3%-4% monthly return may yield $12,000 to $16,000 per month. It is definitely enough to live on! How long that will take depends on each trader starting balance and level of aggressiveness.
What profitable trading method to choose?
Forex traders can be divided into those who want to trade manually, those who like to copy trades and those who want to utilize automated trading. Each of these methods has its specific features which can have both pros and cons depending on a trader’s preferences.
Manual trading gives the real feel of a Forex trading system and the full control over the trades. It requires a lot of time, attention and accuracy because all orders are made by trader without automated support. This is very useful and helps a trader to be always aware of the situation on the market. Thus, the fact that everything depends on the trader, may cause stress if there are a lot of open orders. But it’s always up to traders whether they want to trade or close the position.
Meanwhile, using automatic trading on Forex has the benefit of removing emotions that is a big advantage for new traders. One can trade with the help of robots even being away and having no opportunity to follow the charts. Unfortunately, auto trading doesn’t provide full control over the trading account.
Copy trading is one of the hottest trends in the world of investment right now. Unlike many other sources of passive income, it is open to ordinary people without large investment capital. Copy trading means using a professional’s strategy. A trader subscribes to a professional trader and then copy trading begins. In other words, any position opened and closed by a professional trader is opened and closed in an investor’s account. In this case, the trader has very low participation in the trading process.
All three methods are equal in their benefits and can bring sustainable profits. But manual trading can be compared to highly competitive, intense sport like Formula 1, while auto and copy trading are like sitting in a luxury concept car driven by a reliable autopilot.
Raise more profits with FBS
A few statistics from FBS show how profitable Forex trading can be depending on the size of the investment. It’s important to remember that investment might be quite a risky business and it’s impossible to avoid losses along with profits. Figures say it all. For example, among those who raised profit last month, traders who invested $100 or less during a month got an average profit of 23%. While those who invested $1000 or more received a return from 27% to 55%.
Such a difference in figures may be explained by the fact that people ready to make bigger investments are usually more experienced and self-confident.
Trading on Forex might bring profits, but beforehand it requires due preparation, trading practice, strategy development, and risk management.