What is the financial return you can expect from trading forex? It all depends on you and to be honest: I don’t know how well you will do. If you are serious about trading foreign exchange, and you focus on Price-Action-Trading (PAT) validating the trading opportunities with volume (VPA = volume-price-analysis) and follow a solid trading plan, you should be able to make 2-7% per month. If you do not take the gain out of your trading account, you could more than double your capital each other year. However, there are no guarantees and lots of people starting out with trading forex lose all their money within the first 100 trades.
Below you can calculate your capital increase. For example, if you start with 100.000 euro/US$ and make a return of 2% average per month and leave the money in your trading account and continue to trade for three years, you can see what that could add up to. You would double your money. Enter for example “100000” as present value, “3” as interest rate percentage per period (monthly period) and “36” for the number of periods (3 years) to find out that your 100.000 euro/US$ initial investment can be turned into more 200.000 euro/US$ in just 3 years. Another example, start with 100.000 and take 7% of return per month as your basis for 3 years (input = 36 periods) and you can turn your 100.000 into more than a million. However, since over 90% of those starting out trading forex wipe out their complete trading account within the first 100 trades, I hope you understand that there is no guarantee that you will make the same.
If you are serious about trading forex, consider this as a serious business, manage your risks and protect each of your trades and money with a stop-loss. Don’t move this stop-loss in the opposite direction of how the trade is moving and study how human behaviour works in relation to this business. Being persistent and with hard work you should be able to make a good and consistent return.
There are those that make a much higher return per month and it should be mentioned briefly. Those that make returns of 20-30% or even higher do so while risking a lot more than the usual 1-2% per trade. If you want to gamble, then go ahead, but don’t be surprised if you one day loose all your money. However, if you want to play it safe, then risk no more than one to two percent per trade and in total not more than five to a maximum of ten percent on outstanding trades at the same time.