Online forex market presents one of the best opportunities of making massive gains as compared to any other market in the entire world. This is because you are provided with extra money to a tune of 100 times your capital size or even more in form of leverage which is automatically added to your account as you execute a trade and which you never have to apply for unlike in other markets that require a complicated loan application process which you are not assured of in the first place.
The greatest advantage of using leverage is that if you make profit from the borrowed money it is all added to your account and thus no wonder it has been said that being a profitable trader is probably the best job on the planet but getting there requires patience and dedication to learn since if you were to make a loss it would also be subtracted from your capital.
We all want to make money and in online forex trading, most people want nothing but profits, who doesn't ? It is the mention of quick cash that attracts people to online forex trading and yes it is possible to make a lot of money in this market probably more than in any other market I know of but the potential of loss is also high. It is possible in online forex to make 100% return per month, after 1 month, 3 months, 6 months 1 year e.t.c. It all depends on how much capital one is willing to commit per trade so as to make 100% return e.g after 1 month or after 1 year. More aggressive traders usually go for short-term gains while more risk averse opt for the long-term approach.
Let me use simple mathematical example to explain to you how 100% return is possible taking 100 trades winning 60 of the trades but losing 40 of them. i.e 60% success rate. Let us assume you start with an initial capital of $1,000. You come up with a realistic plan to double the amount by only taking 1 trade per day thus 20 trades in 4 weeks (1 month) and you aim to achieve your target in 5 months. You want to only take high probability trades although the market may present to you several probabilities every day. For every $20 you risk you aim to make $40. In your first month you take 20 trades, you win 12 of them and lose 8 of them. In total therefore you make a profit of 12 x 40=$480 and a loss of $20 x 8=$160. Your Net gain in the first month therefore is $(480-160)=$320 translating to a 32% return for the first month.
Although mathematically as shown above it was possible to make 32% return in the first month with only a 60% success rate, life is not always ideal and there will be days you are not able to trade and to cover for these possibilities you therefore opt to lower your expected return from 32% per month to 20% per month. If you then sustain these kind of results for 5 months, you then make 100% return in your account only trading once in a day and only with a 60% success rate. That means that you can go on with your life as normal and only execute those trades that you manage to get the aleart on time.
This does not imlpy that you will automatically have more trades where you are profitable and make more money than you lose. The opposite can also be true. You can lose more than you win and if your wins are not big enough to cover for the loss, you will be in the negative and you can even lose all your money. That is why it is also important to take time and learn a logical trading strategy or develop one.
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