Many traders are attracted to the foreign exchange market when they see the bright promises that lure them to make huge returns. Have you ever seen an advertisement for trading systems that can double your account balance in a week? Or will it make you a 1000% return? Those who promote these systems claim that they will deliver the promised results because the Forex market allows the use of leverage — which allows you to control much more money than your actual balance, and thus allows you to make huge profits on these huge deals. Of course, they fail to mention the fact that leverage can also cause huge losses, to the point where you can wipe out your entire account in one night and sometimes a few minutes or seconds.
The fact is that the majority of leveraged traders invest no more than 2.5% to 5% of the account balance in one trade. Of course, this is a very small percentage, but it brings the desired safety. Thus, the amount of profits that you can achieve during a certain period depends on the number of deals that you will open during this period and also the extent of their success. Realistically speaking, successful Forex traders will be happy if they can make a return of 5% to 10% per month!
The point is to make your expectations realistic and to be wary of far-fetched illusions. You may make a 1000% profit in a week, but that will not happen unless you are lucky. You cannot build your life on irrational speculations, but you can make enough income for yourself through continuous trading in the forex market.
So how can you increase your winnings without gambling? One way to achieve this is to open more trading positions. However, you should not compromise on the quality of the trades you intend to take as you should limit yourself to those that have the best prospects of success. In other words, the only way to increase trades is to follow more currency pairs or find more opportunities on the same pairs by looking at faster timeframes.
Forex trading requires a lot of patience, unless you started with a large amount of capital, and therefore you should be happy to make a monthly profit of between 5% to 10%. Remember that in theory you may experience exceptional earnings growth at a given moment, however, real and sustainable growth requires sustained earnings over the long term.
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