Is Forex Worth It – How to Make a Living Out of Forex Trading

Is Forex Worth It - How to Make a Living Out of Forex Trading
Is Forex Worth It - How to Make a Living Out of Forex Trading

Is Forex trading really worth it?

Well, it depends on your expectations and your perception of the forex market. To traders who have realistic expectations and achievable trading goals, forex trading can be very profitable and unquestionably worth it.

On the other hand, traders who have tried to earn quick bucks from forex trading eventually ended up blowing their trading account. This is how the forex market punishes the traders who are looking for GET-RICH-QUICK schemes and these traders probably tell that forex trading is not worth it.

In this blog post, we’ll go over how to make your way to becoming a profitable forex trader, as well as how to maximize the worth of your money and time invested in the market to the point where it outweighs your efforts.

When you consider the Earning Potential, the Lifestyle You Get as a Trader, and the Characteristics You Develop as a Successful Trader, forex trading is worthwhile, and if you can succeed as a trader, your lifestyle will be elevated to a new level.

With that out of the way, let’s see is forex worth it? By tapping into the true earning potential of forex traders. Because trader performance can vary, we utilize two or three different measures (various trader performance) to determine a trader’s potential earning.

Earning Potential as a Forex Trader

How much do forex traders make a day, week or month?

This is a question every beginner traders have, right?

It differs and is dependent on the individual’s performance. However, you won’t be able to make millions of dollars as the advertisers do on social media. That is a marketing campaign and they are purely for selling their trading system or course.

Let’s use some examples and see how much earning potential do forex traders have?

According to his trading log, assume a trader has a $10,000 account and is averaging roughly 2% per month. Now based on the statistics, this trader can make around $200 per month.

However, another trader, who happens to be a day trader with somewhat higher income potential, earns roughly 5% every month with the same $10,000 trading account. Now he is earning around $500 per month, right?

Like I said previously, even though traders have the same trading capital, their monthly income can differ base on their performance.

Now, let’s assume a trader who has $100,000 trading capital with an average of around 2% per month. Once again if we crunch the number, we can say that he is earning around $2000 per month which a great income as a trader.

BUT…

When you combine your income with compound interest, the true magic happens. Compound interest is one of the world’s wonders, especially when it comes to the financial side of things.

Compound interest can make a huge impact on your trading account if you’re consistent in your gains, but it also takes time.

We all know that trading is a long-term game and a numbers game as traders, right? and we can observe a significant flip of our trading account if we can patiently compound our gains for 5 to 10 years.

Let me demonstrate what I mean.

Let’s say a trader has a $10,000 trading account and earns 50% every year, which means he would earn $5000 in the first year, which is obviously not enough to live on, right?
However, if we compound his return over ten years, he will make a substantial gain. (We will use money chimp compound interest calculator here). Have a look at the calculator below.

is forex worth it? Compound interest

See, he turned $10,000 into $576,000 over the course of ten years, which is a tremendous return, right? now this trader’s trading capital has increased to $576,000.

As I previously stated, we know that this trader makes a 50% yearly return on investment, so if we take his current trading capital of $576,000, he will be able to earn $288,000 per year, which is a passive income, right? He can also live comfortably on that income.

I think you got the idea here.

Trading is a long term game. Since you gain consistent results annually you always can compound your trading result and gain a reasonable return.

So, the first 5 to 10 is the years you have to work hard and stay calm as well as disciplined. After those hard years, forex trading becomes another – not an ordinary – source of income. To achieve that you have to stay calm during adverse market conditions and stay disciplined in the face of uncertainty which requires you need to have a BURNING DESIRE inside of you.

Now, let me know in the comment section – is forex worth it? when considering the earning potential?

Related Reading – Is Forex Profitable?

Next, not only money but trading also build your character and mindset to a whole new level if you decide to stay in the game for long enough. Let’s dive deeper and talk about this.

Characteristics You Develop as a Trader

We’ve already talked about our earning potential as forex traders, and we all know that we don’t just grow our money as traders, we also grow our personalities to the point where we can remain calm and confident in the face of constant uncertainty.

Aside from trading profit, the qualities we build as traders are another reason why forex is worth our time and effort.

With that said, let’s discuss a few qualities and skills that we develop as traders that the majority of individuals lack.

1. Rather Than Following Your Emotions, You Manage Them Skillfully

Good traders are aware of how their emotions might affect their trading results.

They understand the value of being present and allowing themselves to feel their emotions from a position of freedom in order to make the best decisions possible and stay on top of their game. They never let their emotions affect their decision or overrule their proven trading strategy.

Not only for trading, but this is also a life lesson as well. Learn how to control your emotional ups and downs will help you overcome lots of real-life endeavours.

2. You View Trading Losses as Opportunities for Growth

Good traders don’t waste time wallowing in self-pity while handing over control to the market. While losses can make some people bitter, they can also help successful traders improve.

Trading losses in forex trading allows you to grow as a trader. This will subsequently become a life lesson for you, and you will consider tiny setbacks in life, like losses in trading, as new opportunities to grow yourself.

3. Good Traders Always Feel Good About Them

Good traders always feel good and have faith in themselves, no matter how hard the market hits them. This is because failure isn’t the end of the world for a good trader. It’s another chance for them to grow.

This helps you have faith and feel good about yourself in real life, no matter how harsh life throws at you.

4. Uncertainty is Just a Word for You

We all know that a market is a place full of uncertainty. We never know when it is going up, down or reverse. But as traders uncertainty is what we deal with every day to extract some profit from the market.

Good traders know that uncertainty is present at any given time and the higher possible for happening anything. Therefore they know how to manage uncertainty effectively since they grow as traders by dealing with the uncertainty every day.

This is the most valuable life lesson I’ve learned as a trader. This enables me to remain cool in the face of adversity and, as a result, make good decisions to conquer any obstacles.

As you saw these four traits is very important for trading and our day-to-day life. We can live by that, but this can only be learned and mastered by being a consistently profitable trader.

It takes a lot of hard work, dedication, and patience to become a consistently profitable trader. Is it worthwhile to put in this much effort and commitment in order to become a successful trader?

When it comes to the personalities, skills, and mentality I will develop as a trader, the answer is a resounding yes.

So, what are your thoughts so far? is forex worth it or Not?

If you think forex is still not worth it, let’s talk about the lifestyle you will get as a trader to see if this will turn you on.

Lifestyle You’ll Get as a Forex Trader

Just like any other endeavour, there comes a time when you must work hard, stay devoted to your goals, stay motivated, and continue to study in order to achieve whatever it is that you so much desire.

In trading, that is the time you learn about trading, create a rule-based strategy, backtest them and trade it in the real market conditions to slowly compound and grow your trading account.

Drawdowns, losing streaks, and emotional ups and downs all affect you differently at this time. Most of the time, these things depress you severely. This is a common stage because you’re still growing your trading account. You can’t be inspired by the gains because they’re small, and the lifestyle you acquire as a growing trader can’t satisfy you as well.

The only thing that motivated you in this stage is your trading goals and your vision.

Assume that you have gone through that stage we talked about above. Next, the question is – is it worth going through that hard-working period as a growing trader?

Well, Considering the lifestyle you get as a trader after those hard-working periods, the answer is an absolute Yes.

Now let’s talk about a few lifestyle benefits you get as a profitable forex trader.

1. You Can Trade Wherever, Whenever and Whatever You Want

The forex market offers great flexibility, and as there are no market opening and closing times the opportunity to make potential profits is 24 hours a day 5 days a week.

Therefore you can choose from where you can trade when you can trade and what assets (Current pair) you gonna trade and for that, all you need is a laptop and access to the internet.

2. You Have More Time in Your Hand

Since the forex market offers great flexibility for traders, you can choose how many hours you are going to allocate for a day to trade. Every day you will stay focused on the market on those hours and then let the trades you execute play throughout the day.

So while your trades are running you can spend time with family, friends and even play computer games. The choice is yours.

3. You Become Financial Independent

As a trader, you’ll create constant cash flow for you (this require lots of hard work and time. For the sake of this article assume that you have a bigger trading account) and the time is in your hand is well.

Now by combining that cash flow and time, you can start another business or invest in something else.

4. You’re Your Own Boss

There is no one to force you to do some task and no pressure. Also, you don’t need silly excuses to get vacations. The whole control is in your hand.

5. You Will Become More Disciplined in Your Life

Everything we do in trading involves disciplines, whether executing a trade, taking P&L or doing pre-market analysis. Without a disciplinary approach to trading, we cannot extract consistent profit from the market.

These disciplines you train and gain during the trading, you will automatically be going to apply in whatever you are going to do whether it is business or a hobby. This will very useful in real life.

With that, So far we talked about why forex trading is worth our effort utilizing three main areas. Namely Earning Potential, Characteristics you develop and finally the lifestyle you get as a trader.

Now let me in the comet section, Among these three, what turn you on and why you decided to trade.

Finally – Is Forex Worth It?

Forex trading brings value to everything I do as a trader. It may seem insignificant, but the lessons I learned from the market are invaluable. I will never regret my decision to become a trader, especially from the perspective of who I have become.

Now, why you guys choose to be forex traders? What is your motivation or what inspired you? Let me know in the comment section.

Finally, if you have any questions let me know in the comet section as well. I will do my best to help you guys. Also, make sure to share this post if you like this.

LEAVE A REPLY

Please enter your comment!
Please enter your name here