Forex trading is the process of buying and selling currencies online. It is an exciting field that allows traders to make money by predicting how currency rates will change over time. But is Forex trading profitable?
There are many reasons why Forex trading can be a very profitable career, but there are also several factors to consider before jumping headfirst into the market.
This guide will walk you through how Forex trading works, exactly how profitable a career it is, and offer you an insight to your 2022 trading profit potential.
How Does Forex Trading Work?
Forex is short for Foreign Exchange. It’s the world’s largest financial market, with an average daily transaction volume of $3.6 trillion in 2019.
The Forex market comprises all of the world’s major currencies. Currencies are bought and sold according to their relative value to one another, and currency prices fluctuate constantly.
The Forex market is open twenty-four hours per day, five days per week. This is because currency trading does not stop when the normal business day ends. As currency values constantly change throughout the world, Forex traders can potentially make or lose money around the clock.
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Is Forex Trading a Profitable Career?
It’s possible to make a lot of money trading Forex. In fact, many successful Forex traders earn millions of dollars per year. However, the Forex market can be extremely risky without the right market analysis and expertise. It takes a lot of hard work to become a successful trader, but the benefits can be well worth the effort.
However, it’s also possible to lose just as much in the Forex market, especially if you are trading with your own funds. That’s why many successful Forex traders trade through expert prop trading firms and get access to $10K-$20K Funded Accounts and key Forex trading strategies to get them started.
This way, traders can learn key skills from experienced, successful traders, while working in a safe environment with no risk of losing their own money since they trade with the firms capital.
Forex Trading vs Trading Stocks Profitability
Is Forex trading more profitable than trading stocks? It’s a question that is frequently asked and it can be difficult to answer. It really depends on the trader and how much time and effort they put into learning about their chosen market.
Some traders prefer Forex because trades happen over shorter time periods, while stock investors place long-term bets on companies they believe are winners. Forex traders can potentially make or lose money faster, which can make trading Forex an exciting and potentially lucrative career choice.
What is Your Earnings Potential as a Forex Trader This Year?
With a funded account and clearly defined capital progression pathway provided by a prop trading firm, your 2022 earnings potential is significantly boosted.
For example, take a look at our infographic below, outlining the 12-month profit potential of a proprietary funded trader vs a trader providing their own funds. As you can see, Trader A funds their own $20K account, while Trader B has access to the firms $20K account plus our clearly defined capital progression pathway.
After 12 months, you can see that the returns overview values Trader A’s Trading Capital at $37,500 and Trader B’s Trading Capital at $500K. This sees Trader A taking home a profit of $17,200 while Trader B takes a profit share of $55,600.
How To Boost Your Forex Profit Potential
There are a number of ways to boost your Forex trading profit potential.
As mentioned, one of the key strategies is to take advantage of a funded Forex account. By doing so, you can work alongside a team of successful Forex traders and learn from their expertise through online training sessions and webinars.
In addition, by taking part in regular webinars, you are also able to learn from other traders in the firm’s trading room. By having access to these additional resources, it can help take your Forex trading career to the next level.
Another way to boost your Forex trading profit potential is to start a trading journal. A trading journal is simply a record of all your trades. It can help you identify your strengths and weaknesses. By making adjustments to the strategies you use, you are able to boost your chances for success.
Your trading journal can also be used to track how much money you are making every day or every week — and reveal potential issues that may be affecting your trading performance.
Finally, you should also aim to keep your trading simple and easy to understand. The more complex a strategy is, the harder it will be for you to know when and where to enter and exit trades. This can lead to you making poor investment decisions that could threaten or even destroy your long-term profitability.
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How To Become a Forex Trader in 2022
If you want to become a Forex trader in 2022, we recommend joining a Forex Trader Programme today. Educational programmes like this one can help you learn necessary trading strategies and concepts in a clearly structured pathway to success, while also providing you with the starting capital to help you get your career off the ground.
Our specialist and structured Forex trader development programme offers traders a unique opportunity to build an in-depth industry knowledge and key trading skills in global Forex markets within a leading proprietary trading firm.
On this educational programme, you will use Tradingview to examine a variety of charts. Through this in-depth analysis, you will be able to spot patterns and trade opportunities with the aim of placing profitable trades that are consistent with your bespoke trading plan.
On our market-leading MT4 trading platform, you will trade both major and minor currency pairs including GBP/USD, EUR/USD, USD/JPY, USD/CAD, NZD/USD, and many more. You’ll study comprehensive technical and fundamental analysis, create and test your trading strategy from the ground up, before trading live with the company’s capital.
So – Is Forex Trading a Lucrative Career?
The short answer is – yes! However, you need the right knowledge and guidance to make it happen. So make sure you are committed to learning trading basics, skills and remember to start your own trading journal today!
If you join a Funded Trader Programme at Alphachain Academy, you’ll get access to our full suite of training tools, techniques, strategies, webinars, mentoring sessions, and more. By doing so, you’ll be able to boost your trading skillset and finally become a profitable Forex trader in 2022 and beyond.