So you want to make money through forex trading. People often ask questions such as how much time it will take to make $50 a day with forex and what strategies they need to follow in order to achieve that mark.
For some people, a $50 a day target could be less, while for some people this could be a good income. Actually, making $50 a day with forex is not as hard as you think. This is possible only when you follow the right trading strategies and you have a proper trading plan.
So how can you make $50 a day trading forex?
Making money consistently in Forex involves two things a great strategy and great risk management. You should only risk 2% of your account at any one time so you would need $2,500 in your trading account to make $50 on a risk/reward of 1:1 or $1,250 account with a 1:2 risk/reward ratio.
Because the market fluctuates so much, it is not necessary that you will be making $50 or more each and every day. You should be ready to bear losses as well. But, when you follow the right way, there are very minimal chances that you will lose your money trading forex.
Do you know around 96% of forex traders lose their money and end up quitting? The major reason behind this is not having a proper trading plan or strategy. Here are some mistakes most new traders make that avoids them make money with forex:
- Lack of sufficient capital
- Trading addiction or overtrading
- No trading plan or strategy
- Poor risk management capabilities
- Improper execution
- Poor money management
- Choosing the wrong broker
- Lack of proper knowledge
- Using leverage unreasonably
- Purchasing the wrong trading strategy
- Not investing sufficient time
- Totally relying on forex signals
- Not setting achievable trading goals
- Emotional trading
- Unrealistic expectations from trading
- Using unreliable trading tools
- Lack of discipline
- Learning through trial & error
So these are the major mistakes new forex traders often make which leads them to lose money and in the end, they end up quitting. So if you are a newbie getting started trading forex, make sure you avoid making these mistakes.
Avoid these mistakes will help you a lot throughout your forex trading journey. Making any of these mistakes can eat away your money. Now, let’s take a look at how to make $50 a day with forex.
How to Make $50 a Day with Forex?
Follow the below-given steps if you want to make $50 a day with forex:
1. Learn about financial markets
First thing first, make sure you have enough knowledge about the financial markets. Before getting started with forex trading you need to have good enough knowledge of various markets like the forex market, stock market, bond market, derivatives market, etc. You need to gain knowledge and figure out which market you are interested in the most. Also, learn about how actually the market works and reasons why the market fluctuates.
2. Choose reliable broker
Broker plays a very crucial role in your forex trading journey. If you fail to find a good broker, there are huge chances that you will end up losing. The main task of the forex broker is to help you with the execution of transactions. Before choosing a broker, don’t forget to check out reviews. There are many fraud brokers in the market that create problem while the withdrawal of the funds. Apart from this, also make sure the customer support you will receive with the broker is great.
The analysis is very important in forex. Doing analysis will give you an idea about the market condition. There are two main types of analysis – fundamental analysis and technical analysis. Both of these analysis types are important. Under the fundamental analysis, various factors like economic, social, and politicals factors are analyzed. And, under technical analysis, the forex trader studies the price movement. Through technical analysis, the trader can take a look at historical data and determine present and potential market conditions.
4. Be prepared
The major mistake people often make when they get started with forex trading is they have no plan. If you want to become a successful & professional forex trader, you need to make sure you take forex trading as your business. Just like you prepare a plan for the business, you should also prepare a plan for forex. Preparing a plan and building strategies will help you so much. One of the major reasons why people lose their money in forex is because they get started without any plan and strategy. Having a strategy will help you achieve your goal of $50 per day with forex.
5. Reduce your risks
Just like any other business, forex also has a risk factor. The best and easy way to make $50 a day with forex is to diversify or limiting the risk factor. No matter how amazing the trade seems, you must not spend all your money on just one trade. Obviously, by winning that trade you will be making huge money, but if the same trade goes against you, you may end up losing huge. So instead of putting all your money in a single trade, you need to start diversifying the trades to limit the risk factor.
6. Have patience
Almost all the beginner traders start emotional trading when a single trade goes against them. If you are just getting started, avoid this mistake. Emotional trading or trading addiction can be really dangerous. It can lead to huge losses. If you have set the goal of $50 a day with forex it doesn’t mean every day the market condition will be the same and you will make the same amount each and every day. Some days may not be good and on some days your earnings may exceed your expectations.
7. Start with the micro forex account
To avoid making losses, you may start with a micro forex account. Getting started with a micro forex trading account is a good idea because, with a micro account, there will be a very minimal risk. This way, you can learn more about the market and actually the market works. If you do not want to start a micro forex trading account, you can even start demo account at no cost. Forex demo accounts are funded with fake money. You can ask your broker for the demo account, the broker will provide the demo account without charging any money.
8. Keep learning
The learning in the forex market never stops so you should never stop learning. You need to always keep an eye on the market sentiments or market conditions. Know the current market condition will help you know the reason behind price fluctuations and it will also give you an idea about how actually the market works. There are various ways of learning and mastering the forex market. You can take coaching from expert trading professionals, read the latest articles & news, take video lessons, etc. So if you want to keep the target of earning $50 daily, don’t stop learning.
How Hard Is It To Make $50 A Day With Forex Trading?
1. Prince Puparoni “Easy to win and easy to lose” – It’s a lot easier to lose 50 bucks a day
2. FIinvestor “Easier with more Capital” – How much money do you have? Making 50$ a day is alot easier if you have $1 million capital than $1k. I believe Forex trades 24/7/365 so 50$ a day equates to around 18k annually. With stocks, you would need around $250k in capital to reasonably expect a $50/ day average return. Also keep in mind with both Forex and stocks the best you could do is average to your target per day return, somedays you will lose money.
Forex overall is relativity difficult to profit from consistently.
3. JBass55 “Plenty of people that do” – It’s possible but remember you’re on an investing subreddit. Everybody here will have a negative connotation on day trading, so don’t even bother asking them. Cue the cliche “about the same odds as roulette” or some other bs answers. To them, long term buy and hold is the only way to make money in the market.
There are plenty of people who do it successfully, just gotta find the right sources. R/forex should help.
4. DasDas3407 “Making $50 on 1k account doable but…” – I think it’s worth saying: is it possible? Absolutely, making $50 in a $1000 trade is possible, but like others have said it’s probably not possible to do that consistently. The other question, that people have brought up is that it probably costs $10/ trade. (1% of your account) That means you will start every trade at a loss of 1% and have to work your way up from there.
So I would say for right now, if you want to trade at all focus on swing trading and start with more attainable goals (like the 5% over the course of a trade instead of over a day). Otherwise start building your account a little at a time until you can manage the costs/ goals a little better.
5. Seth_2324 “$50/ Day is fairly easy even with small account” – Don’t let any of these responses scare you off. $50/day with a $1000 account should be a fairly easy task to pull off as long as you actually know what you’re doing. For me, I started off with less than $3000 in my account on TD Ameritrade and let’s just say I am no longer affected by PDT. However, I suggest you stick to trading stocks that are under $10, that way you can buy/sell more shares. It will not be something you just master out of nowhere and in little time, so just keep studying the markets, technical analysis, and trading psychology and you will be fine!
6. Savage_Puppy “$300k from $500” – Ross Cameron made $300k with a $500 account, so it’s doable. But you really need to have the skills and discipline to make it happen. Most people will go broke because of lack of discipline, confidence and experience
7. Nel90Son “Stick to your risk management” – its doable.
25-50 reward might be too low, as you’ll get eaten alive with fees and commissions. i’d look for at least $90 reward trades. risking $30. stick to around 3.0 RR or above. learn a one or two high probability set ups, paper trade and back test them until you’re beyond comfortable. wait for those set ups, that will give you 3 RR.
problem, this wont happen every day, maybe not even every week. but they do happen if you’re patient. stick to your risk management, follow the strategy you know and tested. I made around $80(before fees) on a $800 dollar trade the other day.
As you can see a lot of people are going to be negative. Are the odds in your favor to win consistently? Not if you don’t know what you are doing specifically when ti comes to risk management.
- Get with a free trading group maybe like this one (TNT Forex Solutions on Facebook)
- Learn and master a strategy
- Demo trade until you are winning much more then losing
- Go live never risking more then 1-2% to make your $50 a day
Depending upon your knowledge and strategy you implement, some days you would be able to make $50 or more a day easily, while sometimes you may find it difficult to achieve this target. It all depends on your trading plan and strategy.
If your trading plan & strategies are really powerful and if you have sufficient knowledge about how & when to trade, you can definitely make more than $50 a day. To make it easy for you to make $50 a day with forex, here we have shared some points you need to follow. These points are focused on making you a knowledgeable and disciplined forex trader.