How much do forex traders make a day?
The answer to that question varies from forex trader to trader. But generally, forex traders as a group can make more than the average salary in any country if they work a full time job. This is not just a question of how much are the traders paid, but also how much do they spend their day perusing the market (system development), strategizing how to best apply their knowledge (strategy development), and developing their own trading strategies (strategy design).
As mentioned earlier, the average day job does not allow forex traders to spend much time with their families or their friends.
Some may consider this to be “risky”. If so, how much are traders in general ‘risky’?
To answer that question, we need to look at the nature of the trading business.
A day forex trader is entering a highly liquid financial instrument. The nature of the instrument is change. The nature of the instrument is unpredictable. The price range of the instrument is known. The price range is known before the trade is placed.
So when do we know what the range of the market is?
The risk is not in the trade itself. In the course of the business business, some days the risk is even lower. But the risk is always there.
Risk comes from placing the wrong trade. The wrong trade may have only small reward. The wrong trade may have significant reward. The wrong trade may have medium or large reward. The wrong trade may have medium or large risk.
The wrong trade may have only small reward and the wrong trade may have medium or large reward and medium or large risk. When the reward is only small, the risk is always there. When the reward is medium, the risk is medium, and when the reward is large, the risk is still there.
So the question is not how risky are your trades. The question is how risky are your judgment while placing the trade. A wise trader will always have a risk management strategy in place. The question becomes how many trades a day should a trader accept to minimize the risk and maximize the reward?
Some might answer that it is impossible to manage the risk in each and every trade while still having a profitable and normal day. That may be true. But then the trader must ask how many trades are too many? How many trades do you think you should take before you are sure that you have overdone it? How much risk is too much? How much is too too risky? That is a decision that must be made after the trader has evaluated his trades and the results have been in.
The question then of how much do forex traders make a day is based around the level of risk and the amount of money you have to trade to start with.
Posted by Mark Sisson at 1:13 PM
A Message From Mark Sisson, Ph.D.
Mark writes: “As I get feedback from the team and from members of the public, we are going to be implementing certain techniques as to how to execute EMF trading strategies. The team has been out for several months with the EMF software so they don’t really have much time to test new things.
We also have several EMF strategies that have gone through the full testing and are ready to go with only a small change or tweaks. We are going to implement techniques such as short term reversal stop loss strategies that are ready for prime time. Other strategies are ones that we need to thoroughly test in order to make sure that they will work as intended. I have already added new strategies to the system.
We will also implement the EMF software’s ability to create portfolios based upon indicators we have applied. I hope you will find this article about the future of EMF for futures trading interesting. I have been doing a lot of reading, working on my EMF software, and discussing EMF strategies with some of the best minds in the industry in hopes of being able to bring a bit of magic to the table. I also want to give you a big thank you for making such an interesting website and website that has helped me to understand and come up with some great strategies to help you make money in the markets. I wish you the best of luck!”
Visit the Future of EMF Traders Website
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