If you're here, it's likely because you want to know the answer to “How long it takes to be profitable from Forex trading?”
Just as there's no single path to success, there's no one-size-fits-all answer to the inquiry of how long it takes to be a profitable trader.
While some Forex traders assert that a minimum of two years is required, others extend this timeline to five years, and a fraction still find themselves grappling with the intricacies of the financial markets after a decade.
The answer, as you can tell is not monolithic.
The duration to become a consistently profitable trader is subject to a variety of factors, primarily hinging on an individual's background, commitment, and capacity to absorb trading knowledge fast. Some traders require more time, whereas others could accelerate their learning curve and trade successfully faster.
This article aims to dissect the timeline required to attain profitability in the realm of Forex trading, delve into the myriad factors influencing the learning process, and delineate how the duration to achieve profitability is determined.
Additionally, you'll gain insights into the potential financial returns attainable through Forex trading.
HOW LONG DOES IT TAKE TO LEARN FOREX
A prevailing sentiment among most Forex traders is that a span of just a few months (6 months) to several years is imperative to learn Forex trading. However, the time it takes to learn Forex basics may be shorter.
While many traders advocate paid trading education from seasoned professional traders as the only reliable path to learning trading, the truth diverges from this notion.
Becoming a self-taught Forex trader as a new trader is entirely feasible.
Self-guided learning through free online courses from different Forex websites and YouTube offers a viable route, albeit with a slightly extended learning curve. The decentralized nature of online resources might occasionally lead to gaps in essential knowledge, such as proper risk management insights, which can hinder progress.
Now, you may be wondering:
“How long does it take to become a profitable trader if I buy a Forex trading course?”
For those thinking that they will speed up their trading career and become successful traders faster if they buy online courses, they need to be aware of the get-rich-quick scheme scams.
Lastly, it's important to acknowledge that opting for a paid trading course can significantly expedite the learning process.
Several factors contribute to the pace of learning:
- Dedication: Your commitment and effort in the learning journey.
- Cognitive Aptitude: Although it may not be politically correct to acknowledge, your innate intelligence can play a role.
- Chosen Course: The course you select shapes the depth and quality of education.
- Teaching Quality: The caliber of instruction greatly influences your learning curve.
- Time Investment: The duration you allocate to practice trading impacts your proficiency.
- Background in Finance: Prior exposure to investing can influence your learning pace.
Now let’s get back to the question:
“How long does Forex trading take before you can risk real money on a live account?”
And more importantly, let’s see a few of the advantages of Forex trading and why trading Forex can lead to consistent profits.
WHY LEARN FOREX TRADING?
The allure of Forex lies in its array of advantages that beckon individual traders seeking to harness financial opportunities. Below, we unravel the core advantages of Forex trading:
- Supplementary Income Generation: Forex trading is a potential avenue for boosting one's income beyond conventional revenue streams.
- Forex traders can make money from different market conditions including the bear market.
- You can start trading even if you have a full-time job due to the nature of the Forex market which is open 24/5.
- Cost-Effective Transactions: Forex trading distinguishes itself by maintaining low transaction costs, setting it apart from other financial markets.
- From trading software to comprehensive market analysis tools and economic calendars, this technological arsenal arms traders with insights that can help them anticipate currency prices.
Now that we know how long it takes to be profitable from Forex trading let’s see what is the average profit in Forex of successful traders.
What Is The Average Profit Per Month in Forex?
Using ZipRecruiter's job search engine, the average salary for a US Forex trader is around $103,290 per year and they may earn $8,607 monthly on average. At the same time, the average annual income of a top Forex trader is $193,000, amounting to a monthly earning of $16,083.
However, these figures are just a part of the equation. The pathway to success in Forex trading is influenced by a range of variables that play a pivotal role in determining a trader's financial outcomes:
- How much capital do you have in your live trading account?
- What Forex trading strategy you’re using (day trading or swing trading strategies)?
- The level of leverage used.
- The diversity of currency pairs traded.
- The choice of Forex broker used.
- Risk management trading strategies used.
A consistently profitable Forex trader isn't confined merely to trading terminals and technical analysis; a professional trader is also an avid consumer of global economic and financial trends. The success stories of industry hedge fund managers such as Paul Tudor Jones stand as testimonies.
Making informed bets made him a 9% profit betting against the Japanese Yen, following the monetary policy divergence between the Fed and the BOJ. With $12 billion in AUM, this translated into over $1 billion in profits.
FINAL WORDS ON HOW LONG IT TAKES TO BE PROFITABLE FROM FOREX TRADING
In summary, the journey to profitability in Forex trading demands a blend of time, diligence, and unwavering dedication. It's imperative to recognize that Forex trading is far from a get-rich-quick scheme and success is far from being attained in a few weeks so don’t quit trading if you don’t see profitable trades overnight.
Profitable trading is an ongoing process so traders need to have realistic expectations when it comes to how long it takes to be profitable from Forex trading.
Most traders should first hone their trading skills on a demo account, and then do live trading but with a small account. With a blend of patience, unwavering discipline, and dedicated effort, mastering the art of forex trading and achieving success in this field becomes an attainable goal for anyone.