Is it possible for an amateur forex trader to make sustainable profits trading forex?… It is possible, however research and retail broker data clearly states that less than 1% of traders can actually make profits.
Let me briefly answer the questions, and then develop the subject:
Is it possible for an amateur Forex trader to make sustainable profits trading Forex?
No. It is possible for an amateur trader to simply make some profits, but it is quite sure he will sooner or later get his balance to negative until he does not upgrade to the professional level. And by professional level I don’t mean having certificates of a trading academy. The key thing is the experience and being conscious about every decision you make. It’s like in any other business.
How specifically do you make money in Forex?
Well, technically speaking, the steps are as follows: you choose a reputable broker, register, download its terminal (platform), choose the leverage, make a deposit, and just trade the currency pairs by anticipating if these will go up or down (Buy or Sell). The currency pair price changes will generate your profits.
Does a broker pay you some quarterly dividends?
No, you just have a balance on your account that constantly increases or drops based on your trading activity. If you carried out profitable trades, you can then withdraw your money if you want. For this, you just need to know the deposit/withdrawal specific rules of the broker you choose.
Now, returning to the first point – it is not a good idea for a trader to accept his amateur level. You should know that only 5 % of traders are making consistent profits. It is not because Forex is so risky. It is because people have a wrong attitude about the trading process.
They don’t see it from a professional perspective as a business. Many traders perceive Forex as an activity that can give you easy money, which is not true.
You have to learn, to exercise, to analyze, to test many strategies, to develop some skills, and most important of all – to develop a professional attitude. You should dare for more, but do it gradually. There are tons of materials online about Forex, so you can start by learning the basic concepts.