Is Forex Trading Worth It? (Risk VS Reward In Forex)


When you are first getting involved in anything whether it be a project or a career you want to make sure it is going to be worth the work, effort or money. This is no different when it comes to forex or any investing strategy. There are a lot of scenarios for this open-ended question we will attempt to answer some big ones here.

Is Forex Trading Worth It

 

So is Forex Trading worth it to get involved with? Yes it is completely worth it in the short term and long term. Why? Because the markets will always be there if you can trade Forex you can trade almost any market whether it be Stocks or Cryptocurrencies even. That’s the long-term the short term is that you have the opportunity to make money right away. There isn’t as much of a learning curve in forex as you only have a limited number of currency pairs to trade wherein stocks there are hundreds of thousands of companies.

Short-Term:

The short-term outlook isn’t a “get rich quick” scheme unless you have a lot of money to invest and pick up on a successful strategy quickly. So if you have $25k to invest and can live off of $1,250 on 5% average weekly (1% daily) return you can do this pretty quickly. Again disclaimers read our disclaimer at https://stayathometrader.com/trading-disclaimers/ to see our full disclosure there is risk involved and trading does not have a 100% guarantee.

For the most part I trade with 2-3% risk which means I only need to average 1 winning trade net at a 1:1 ratio to make 2% which is double the projection above. Most people won’t have this kind of money laying around myself included when I started so you can start with as little as $100.00 it just will take a bit longer to hit your trading goals but you need to have a plan. Just like the 5% return I had above if you go and download our Daily Plan Spreadsheet found HERE you will see you can mess with the numbers a bit but just keep it realistic.

In the start you should be demoing so technically you need no money to start. So try to make money consistently on demo first then go live you can try out our free strategy HERE

Long-Term

You need to have a long-term plan in place before you get started in forex or any trading/investing for that matter. Just like your 401k you want it to continue to compound moving forward. Once you get to an amount you feel comfortable at then you can start drawing on it without taking any hits.

So if your goal is to make $260k a year which is 5k a week you need to go to your trading plan and make adjustments based on this and what it will take to get there.

For example, at 5k a week withdrawing and making a modest 5% return on your trading account that would mean you would want at least $100k in your trading account at all times.

That is a nice round number and is definitely achievable with time. Even if you started with $500.00 USD it would take about 30 months at a daily 1% ROI average at 20 trading days a month (around 26 a month on average). But are you going to get to the 1% daily average immediately? More than likely not.

This is where you need to take your time and demo then even when you go live you should start at a 1% risk to make sure you emotions are in check. Then you can up to 2-3% I even risk 4% at times but I never go higher then that. Why do you think that is? Well if you risk 3% I believe it is around 33 trades you would have to lose in a row to actually blow your account. That is very tough to do even if you are just pressing buy and sell randomly but never do that of course lol.

Yes forex trading is one thousand percent worth it if you enjoy doing it. Get in an demo you can use our free strategy see if you like it before you invest a dime. You can even take my free indicator with you. That’s the thing with being a retail trader in forex anyone’s trading secrets don’t matter it takes billions of dollars to manipulate the market up and down so us smaller traders don’t have to worry about that.

Related Questions From Readers:

Is Forex Trading Really Profitable?

Forex can be very profitable even if you use proper risk management. What do I mean by this? Well if you see somebody posting a 100 lot trade making crazy amounts of money they more then likely are over leveraging or on demo, either way, they will more then likely not make it in the forex game. You need to use proper risk management to make it in the long term. You don’t want to win 10 trades in a row only to lose it all on the next trade. To be honest you are going to lose trades no matter what if people didn’t then everybody would do this. Even the best of the best lose trades.

Is Forex Trading High Risk?

Forex trading is low risk if you use the right risk management you should be risking no more then 1-3% a trade. That would mean you need to lose 33+ trades in a row to actually blow your account. That is how forex trading can be low-risk high reward. Especially if you are risking 1% to make 3% return with a 70-80% win rate. If you haven’t looked at my new paradigm page check it out Steve Gregor is a 15-year trading vet and he trades with a 3 pip manual stop….mind boggling I know I am still working on getting there. I currently take most of my trade (80-90%) with a 4-5 pip manual stop. You have to get your VOT in.

What Downsides Are There For Forex Trading?

There are downsides to trading of course. You can lose money it is not in anyway guaranteed that you will make a profit. The market can be still manipulated by the banks and power traders the way you stay away from this though is to not trade around big news simple as that. Brokers are negative and positive. You can trade without a broker but I never will too much work. But with a broker there are usually fees and spreads to be paid so I would shop around and demo some different brokers before deciding on one. Do your research and demo it is after all FREE!

Advantages Of Forex Trading:

Well I can go on and on about this and I will in a separate article. All you need is a computer and internet connection to trade which means you have options on where you can trade. You want to go on vacation and take your work with you go for it. Want to trade on the beach have at it. I know people that trade on their phones and tablets. I myself have ordered a Microsoft Surface that hooks directly to my AT&T network then I can have some portable USB monitors to go with it. You don’t need 10 monitors to trade especially in the beginning when you are just learning you will get information overload if you do. Just start out with maybe a laptop and your phone/tablet there is your two screens to start.

After you get going re-invest your money into some monitors and a better computer if you want to. Just stick to what works for you and what you are comfortable with.

If you get into trading the forex for the long-term congratulations I hope you journey is as fun as mine.

 

Tab Winner

Hello I am Tab Winner welcome to my Forex blog. I have been trading Forex for over 2 years now and a stay at home dad for about the same amount of time.

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