What % Can You Make in Forex?

There are a lot of new traders who are curious about how profitable forex can be, specifically in terms of what their earnings could be as a percentage of the amount they invest.

Newbie traders are quick to rush to calculate their potential profits because they are enticed by the promises of rapidly becoming wealthy and achieving the coveted “financial independence.”

Any response would be honest to the question that was asked, of course. When trading foreign currencies, you can realize a profit that is as high as thousands or even millions of percent in a very short amount of time. On the other hand, you run the risk of losing everything just as quickly. The second scenario is, unfortunately, the one that is most likely to occur.

It is dependent on your risk, which is not only the truth but also a more informative answer. If you are going to risk the entirety of your account on each trade and you are going for a high risk-to-reward ratio, then the potential gains you could make are enormous, but so is the potential loss you could incur.

If, on the other hand, you are only going to risk one percent of your total balance on each trade, it will be much more difficult to make hundreds of percent of profit. On the other hand, there is less of a chance that one will go bankrupt.

Even though experienced traders may roll their eyes when they hear the question, it is a good first step to better understand the concepts of risk and reward, as well as the probabilities involved in Forex, to ask yourself what percentage you can make in trading is a good first step to better understand these concepts.