How much do forex traders make a day

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This is a common question. People want to know how much money can you make trading Forex. The popular believe is that you can get rich so fast here. That is more complicated than that.

I think that there are two things that create fake reality of Forex trading:

1) Demo contests

There are a lot of demo contests out there. You can win some nice prizes. Problem is that they usually last fore few weeks / other short period. As a result, it is simply a gambling contest, not a trading contest. Forget money management, strategy… To win here people start multiple accounts and trade with highest leverage possible. It is not the way they would trade with real money on daily basis.

2) Real results with only percentage returns

That is interesting thing. Once I had an account at very well-known FX broker. There was no contest, just a motivational newsletter once each month with best results of their clients. OK, not a bad thing – they were showing that people are making money. Thing is, results were presented only in percentage gains. That’s it. Basically this numbers tell you nothing. Even if somebody earned 1000% he might simply placed some gambling trade on his 100$ account and he earned with lucky shot.

The big picture here is very unclear. That is a nature of this business – brokers want more clients so they do what they do. People know that many people lose money on Forex, and yet they think that they are better than the rest. In their mind, they can see millions they can make here.

If you want to have overview how traders are doing in contests, head to http://www.myfxbook.com/contests. You can find here both demo and real Forex contests. On the right, you have analysis with more data about each contest.

I encourage you to follow some traders on Twitter or simply to check real-money Forex contests. You will see totally different side of trading. I know traders (who trade for a living) who sometimes place only 5 to 10 trades per week. There are weeks that this is less then 5 trades. They are watching charts all day long, but they wait for their best setups. Number of trades depends from trading style but still – it is a different story when you are risking your real money.

There is no specific answer – how much money do Forex trader make. One thing we can be sure – these are not amounts like in demo trading.

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Part 1. Introduction to Forex trading Part 2. Trading tools Part 3. Money and position management in Forex