This is the third article by #BitForex of a series of articles we are making available to those who want to learn more about Blockchain and the crypto-world and trading. Our last article was about ‘how to choose a good crypto-exchange’. Today’s article is about how much money a trader makes! Is it profitable to be a trader? Let’s find out!
Finally you have decided to become a trader, and now you must know what to expect from this type of activity. The most popular question is — How much money a trader actually makes?
Today we are going to try to answer this difficult question.
We are going to talk about trader`s income not in US dollars but in percentage based on the total capital invested or designated for trading.
To be very honest, traders’ profits are always very tricky and unpredictable.
You could make as a trader for example, 100%+ in profits, but trading for such high profit offers a very high-risk of capital loss. On the other hand, you can slowly and stably get smaller percentages, which may not seem to be so attractive, but it will reduce considerably trading losses risks.
In the first case scenario (of high profits), that does not refer to a traders, but players profit, in a easy get easy go manner. In the second case scenario, that is most probably what an experienced and cautious trader may get as profit. Trading success`s secret doesn’t lay on high-profits trading but on good judgment and money management and educated decisions.
So, in your opinion, how much a trader actually makes in profit?
100%
50%
20%
5%
2%
If your answer is 20%, 50% or even 100%, we have the responsibility to help you set more realistic expectations. It doesn`t mean that a good trader cannot make a 20% profit in one month or even in one trade — it is possible, but in the next week/month, adhering to a more conscious and precautions capital management system, 5% profit income or even 1–2% loss is possible as well. This way, the average income for the year could be less than what the trader actually expected.
Nowadays, with the advent of online trading platform, almost anyone can trade without being a professional trader. And, if you’d like to taste the waters, open a free account at #BitForex and start trading smaller amounts until you find your own way into trading.
The majority of world-famous traders, who are managing and trading large sums, make average profits of 24–48% in a year (allegedly), or 2–4% in a month. They are trading huge sums and cannot afford to get carried away by the game. Take those big players/traders as an example and point of reference when considering stepping foot into trading.
So, keep in mind:
Set realistic goals and low expectations. This will help you answer the question — “How much a trader actually makes?”. Do not aim for very high profits until you become an experienced trader — doing that is the shortest path to bankruptcy.
Capital management should become an integral part of your nature. Breaking money management strategy means ruining a trader’s career (if you intend to make one). Observe other’s and create your own strategies.
Easy money does not exist! Trading today is one of the most promising ways of making money, but as an every-single business, it requires immersion and dedication, putting in effort and choosing the right tools to make the most of your trading experience.
#BitForex can certainly provide you with the tools for a safer trading experience. We end this article with a friendly reminder: only trade what you can live without! Good luck and happy tradings!
By: Ivan Shadrin
17th July, 2018
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