Is Forex Profitable? Short answer: yes, forex trading is profitable. I say this not because I’m reading some books or website saying forex is profitable.
I’m saying this because I have been able to prove to myself (not anybody else) that you can make money in forex.
The biggest challenge for me is staying profitable for the long term. That is my challenge.
You see, you can be profitable in forex for a day, for a week, or for a month.
You can increase your $1000 trading account to 50% or even 100% or more in those timeframes but can you be profitable in forex for 1 year, 2 years, 3, years, or 5 years?
It is easy to be profitable in forex for the short term but do you have what it takes to be profitable in forex for a very long time?
Is Forex Trading Profitable…For How Long?
Anyone can be profitable in forex trading. You can make $100, $500, $1000 or $10,000 profits in forex today, tomorrow, this week, this month.
The real question is, can you do that consistently for a very long time, like more than 1 year?
That is what separates average traders from professional forex traders: how long it takes you to stay in the game can continue to make money in forex.
Here are some things that many beginner forex traders get wrong:
- They think that being profitable in forex, you have to make profits every day, every week, every month or every year.
It doesn’t work that way at all.
Being profitable in forex is this:
- first of all is about protecting your money
- and secondly increasing your money
- and thirdly making sure that you last a long time in forex trading because you still have your money to keep trading because it has grown.
That’s what being profitable in forex trading means.
Being profitable in forex simply means that you have learnt to stay alive in forex trading and making money while most of the forex traders do not survive this long.
If you can still trade and increase your money after 1 year, you are definitely doing the right thing. Keep going.
My longest time trading the same account was like 6 months If I can remember correctly…then I got greedy and blew up the trading account to zero. I haven’t reached the 1 year period yet.
2 Important Traits Required To Be A Profitable Forex Trader
There are two things that I realize that makes a big difference in forex trading:
- Forex Money Management
What Is Forex Money Management?
Forex money management is simply about risk. In short, if you take big risks, you can make a lot of money in short period of time (which I’m really good at!) but the bad side of that is that a few bad high risk trades and you lose a lot (I’ve found that one out many times).
When you trade a lot, over trader, that’s bad forex money management. When take a lot of risk in a trade, that’s bad forex money management.
Learning forex money management is the easiest thing. But doing it, applying it, sticking to it when everything else doesn’t seem to be working is really hard…and all it comes down to is mindset.
What Is A Proper Trading Mindset?
I believe, a proper trading mindset is when:
- you understand that you are not worried about the day to day trading account fluctuations because you are focuses on the long term.
- when a trading loss or trading profit does not bother you, but you see it as part of the whole process to keep growing your account.
- you know that risk management will make you last a very long time in trading forex and failure to follow it is the fastest way to part with your money.
- you understand the negative impacts of greed and fear and learn to control it.
I can list a lot of proper trading mindset but you get the point I’m trying to make here.