Is it possible to trade as a full-time job?
Yes it is possible, however it is very unlikely for the averege Joe. The reason for this is the capital needed to trade with great returns is usually so high, that the averege person cannot afford to risk it. That is also one major reason why we have so many losing traders, they increase risk to increase returns to be able to cash out more money from trading.
How much can I make?
Well, this depends on your risk managment, how much capital you have and your hit-ratio (the amount of winner trades vs losing trades). We at Traders Elite never risk more than 1% of our capital on each trade, and we never accept any risk to reward ratio lower than 1:1.5. That means for every dollar that is at risk, we want at least 1.5 dollars in return. This is the minimum, of course a greater risk to reward is always more lucrative and profitable.
We at Traders Elite have variying returns/month. Some months can be losing months and some bigger winner months, but I can say for a fact that it varies from trader to trader, and that 4% – 10% per month is a realistic number. This does not apply to everyone, not every month nor does it take into consideration variying risk managment styles.
One key concept that traders should all apply, is that they should not cash out or take profits on a weekly/monthly basis and treat it like a regular job. Instead, capital should be kept in your account and profits be cashed out partially or fully at the end of each fiscal year. This will let you take advantage of returns on top of your returns to maximize profits even more. Let’s look at some examples.
All examples are calculated using 10 000€/$ as starting capital. We risk as always only 1% on each trade.
Averege return of 4% per month
If you cash out every month you will earn 400 €/$ per month.
If you cash out once every year you will earn 500 €/$ per month. (10000x(1.04)^12)/12)
Averege return of 6% per month
If you cash out every month you will earn 600 €/$ per month.
If you cash out once every year you will earn 843 €/$ per month. (10000x(1.06)^12)/12)
Averege return of 8% per month
If you cash out every month you will earn 800 €/$ per month.
If you cash out once every year you will earn 1265 €/$ per month. (10000x(1.08)^12)/12)
Averege return of 10% per month
If you cash out every month you will earn 1000 €/$ per month.
If you cash out once every year you will earn 1782 €/$ per month. (10000x(1.1)^12)/12)
This sound very little
Yes, it does doesn’t it? To be able to make large amounts of money trading forex (or any other instrument) you need to have a large capital, be able to invest 6-10 hours each day and be consistently profitable. The figures you see above, does not take tax deductions of your profits into consideration either.
The best way to go for the averege person, is to stay at their full time job, study, learn and trade after working hours and just stay to build capital. When you have built enough capital over the course of 2-4 years, you can start trading as a full time job.
Trading is a very advanced concept that takes time and dedication to learn. This is not anything you can achieve in a very short time. I, myself, traded with lots of losses until things started to turn around. You can avoid losses by using demo accounts until you have understood all the concepts of trading at it’s fullest extent. But when that happens, you can if you put enough effort into it, trade as a full time job. Imagine putting 10 000$ to use, for 3 years, without any cash outs during this period and with a averege return of investment of 7%. After 3 years, your 10 000 $ will turn into:
10 000 x (1.07)^36 = 114 239 $
Now, you have a VERY nice trading capital to use, to be able to make consistent profits and replace your full time job with trading.
In conclusion, do not be scared by the facts that we just stated here. Like any other education, trading takes time and effort. Use this time to study, improve and build your capital. You cannot fly business class, own a private jet and drive luxury cars without the capital, dedication and effort needed.