Today, global markets are more reachable than ever. Millions of individuals trade currencies, stocks, and derivatives online. There is no need for a centralized exchange: parties connect directly on an over-the-counter market. But can you make profits consistent? Here is how to turn trading into a steady source of income.
Prerequisites for Profit
Although trading is accessible to anyone, it brings profits to the most persistent. A common claim is that most individuals end up losing their deposits. Critics cite shocking figures like 80% or 90%. However, actual stats on client profitability are different.
Brokers are obliged to disclose the average retail investor’s gain or profit. This figure may be found on official brokerage websites. According to the largest brands, it now stands at 70% for CFDs, meaning that 30% of traders end up in the black.
Similarly, experts believe around a third of currency traders make money. So, what sets them apart from everyone else? This includes:
- consistency of approach;
- risk management;
- careful use of leverage;
- emotional control;
- willingness to learn;
- acceptance of failures.
Inexperienced traders tend to abuse leverage. This is a double-edged tool. On the one hand, you may deposit less and have their buying power boosted. On the other hand, as volumes grow, so do the risks. Eventually, a sloppy trader using high leverage ends up losing their deposit.
10-Percent Monthly Return
This is a realistic goal for day traders. It is possible to make $1,000 every month if you follow a prudent strategy. Here are the key elements.
Starting Big or Small
A sizeable deposit means even a modest profit percentage brings a decent sum. On the other hand, if you start small and aim for larger returns, you will eventually reach the same level. Of course, if you follow a solid strategy and stay rational.
It Takes Time
Do not expect quick results. On average, it could take you 6-12 months to achieve a 10-percent return monthly. You need focus, patience, and emotional control.
Risk Management Is Vital
Allow up to a 1% risk on each trade. This is easily managed via Stop loss. Volume (the size of position) must be calculated based on this value and the current entry price. As long as your winning positions are the largest, losing streaks aren’t detrimental.
Trading is not for everyone. It requires a special mindset, financial foresight, and solid knowledge. With these conditions met, you may expect consistent results. While mistakes will always happen, a wise strategy will ensure your profits are steady. For the most successful players, trading is a full-time job that brings a hefty income.