It’s understandable why some who trade Forex think a million dollars will come easy.
Marketing such as “Forex Trader Makes Millions” is used to lure wannabe currency traders into trading systems, trading signals, or some holy grail that an “Ex-Banker” has released in his $99 e-book.
You want the truth?
You want to know how can you make a a profit of $1 million dollars Trading Forex?
Don’t think you will ever do it with your $100 Forex trading account. Reaching one million dollars is something that will never happen.
That’s not to say you can’t make money trading Forex or even make a living trading FX. That is reachable.
But a million bucks?
There is one way to do it…..one way to even have a chance of day trading or swing trading Forex to riches.
That is to start with riches. Yes. Traders are under-capitalized. While there are no hard and fast statistics, the fact that FX brokers will let you open an account with peanuts and trade virtually any size, speaks to filling in a need.
Let’s see how a Forex trader can have a chance of making $1 million dollars and it all comes down to numbers. When you are done, make sure you download the free worksheet below.
Open a $100,000 live Forex trading account and make 1000% Profit
If you have a $100,000 Forex trading account, its only one tenth of a million dollars, right?
So really, if you can increase that trading account by 10 times, than you make $1 million dollars Forex profits. Yes, that’s a 1000% profit.
How long will that take?
That is a hard question to answer.
If you were to make $1 million dollars in profit in a year then you need to average more than 80% profit each month. We know that is not always possible because some months you will have trading loses. Then some months, you will be ahead.
But lets just say that on average if you were to make 10% profit per month, then you need 100 months to reach a total of 1000 % Forex trading profits…that’s 8.3 years.
This is a long time and takes a lot of hard work to make 1 million dollars.
Open a $250,000 live Forex trading account and make 400 % profit
Now, lets say you have access to $250,000 dollars and you decide to open a Forex trading account and trade Forex.
For this amount to make $ 1 million dollars in profit, you need to increase your trading account by 400%.
If you were to make 1 million dollars in a year, then you have to average 33.3% profit each month.
Is getting 33.3% profit per month realistic?
Yes and No.
I say yes, because there will be some months you can get 30% Forex profits or more and there will be months when you will make less and there will be months when you can also lose.
But what if on average, you were making 10 % profit each month? How long will it take before you make $1 million dollars?
It will take 3.3 years for you to make 1 million dollars in profit.
This also takes a long time and also requires a lot of hard work to make that happen.
PLUS….retail traders rarely have $5000 to fund an account. $250000 is out of reach.
Open a $500,000 live Forex trading account and make 200 % profit
This gets even better…now lets say that you have a $500,000 real Forex trading account. You want to make 1 million dollars in Forex profits.
All you need to do is increase your Forex trading account by 200% and you will have 1 million dollars.
If you were to make an average of 10% profit a month, it will take 1.7 years for you to make 1 million dollars.
Achieving one million dollar profit with 500,000$ reduces that amount of time it take to make if you are averaging 10% profit per month.
If you had such a trading account, making 1 million dollars would not be difficult at all.
Open a $1 million live Forex trading account and make 100 % profit
If your Forex trading account is a lot bigger, like $1 million dollar Forex trading account, making 1 million dollars profit in trading is a lot, lot easier.
Why? Because you only need to increase your Forex trading account by 100% for you to make 1 million dollars trading profits.
So if you were averaging 10% profit per month, it will take you just 10 months to make 1 million dollars.
How hard do you think you have to work to make 1 million dollar profit if you had a 1 million dollar Forex trading account?
Not hard at all.
Open a $2 million live Forex trading account and make 50 % profit
This gets even more interesting…you have a 2 million dollar Forex trading account. So how hard can it be to make 1 million dollar profit?
Well, to put this into perspective, you need to make only 50% profit to make 1 million dollars.
Now, lets say again that you average 10 % profit per month…it will only take you 5 months to make 1 million dollars.
If you think one million dollar trading account will make it easy for you to make 1 million dollars in profits much easier, then a 2 million dollar Forex trading account makes it much more easier than the 1 million dollar Forex trading account.
Open a $10 million Forex trading account and make 10 % profit
If you had a 10 million dollar Forex trading account, how hard can it be to make $1 million dollars in Forex profits?
Seriously, if you had a Forex trading system that can give you 10% profit each month, it will only take you 1 month to make 1 million dollars.
This is the fastest way to make 1 million dollars in Forex trading profits. It is also the most easiest way to make a million dollars in Forex.
All you need to do is make 10% profit and that’s it! You got 1 million dollars profit.
Can You Be A Forex Success Story?
Does success really come down to having a lot of trading capital? If you were to look at some trading success stories, not all started with tens of thousands of dollars.
You can make gains with a small account if you fully understand and utilize the concept of compounding your profits. Heck, check out millionaire Bill Lipschutz who started with $12000..from his Grandmother!
Compounding is the ability of an asset to generate earnings, which are then reinvested in order to generate their own earnings.
In this simple “numbers” game, you can see that the more money you have in your Forex trading account, the more easy is to reach a million dollars.
Compounding in a nutshell:
- You start trading a certain number of lots depending on your account size
- You risk a static percentage of your trading account for all trades
- As your account size increases, your risk percent stays the same
- You will be risking a bigger dollar amount per trade but the same percentage as when your trading account was smaller.
Now, I’m talking about 1 million dollars in profits here but this can be applied to much smaller Forex profits as well.
For example, if you want to make $50,000 Forex trading profits in a year, then tell me, which of these 4 Forex trading accounts sizes can make it much easier and faster to achieve that goal?:
- $5,000 Forex trading account?
- $10,000 Forex trading account?
- $25,000 Forex trading account?
- or a $50,000 Forex trading account?
It’s the $50,000 Forex trading account.
I suppose the goal of every Forex trader that starts with a small Forex trading account is to be able to one day be able to increase that small Forex trading account to $100,000 or more.
Remember, life is not so perfect as these examples because I have assumed a lot of things in the calculation and the biggest one is that you actually have a trading edge. All the money in the world won’t help you if your FX trading strategy has no edge to it.
