Forex Money; One question that often comes up frequently in the forex trading industry is: Is Forex Trading Profitable Today?
Often than not, this question comes from retail forex traders who’re not making it headways due to their flawed trading approach.
Whether you’re using a proven trading strategy, a trading strategy is more important than the strategy
you’re using to trade.
However, some traders take it the other way round.
So, if you’ve been wondering whether forex trading is profitable or wondering if forex trading is safe, the
answer is pretty straightforward: yes, forex trading is profitable today!
However, you might find it difficult to trade and make profits always.
Like in any other currency trade and other markets by extension, even the most season trader hit a
snag and slid into some kind of losses.
Sounds scary? Probably not!
Due to the uncertainty in the forex exchange markets, wins and losses come randomly. As such, your profits and losses are always randomly spread.
However, with a tried and proven trading approach and a profitable trading strategy, wins can turn out more often than losses.
How to Double your Money in Forex Trade
Typically, to trade forex and make profits, you should use some of the proven ways that
can help you double your money more often.
Are you wondering how to trade forex and double your money? Even though it could sound a
bit tricky, you shouldn’t worry.
We’ll walk you through some tricks and hacks to help you trade forex and double your
money with any forex broker.
Ready to get started?
Here are some of the ways to trade forex and double your money.
The Easy Way to Double Your Forex Money
Keen traders know it takes a lot of work and time to see their forex money double.
So, while it’s possible to increase your profit, it doesn’t happen overnight; it rather requires patience.
Fortunately, there are no hard and fast rules to follow – no need to learn about confusing strategies or follow complicated charts.
The best way to go about it is to open forex savings account in a currency with a higher interest rate.
The interest rate will slowly accumulate, increasing your compound interest and subsequently increasing
the money in your trading account.
Rule of 72
How long will it take for your money to double? That’s where the rule of 72 comes in handy.
With the “Rule of 72,” you have to wait for many years to watch your money double.
However, you don’t have to follow complex chats and advanced techniques to get your trading going.
This rule lets you calculate the actual number of years required to see your money double.
Thus, the number of years needed to double your investment equals the value of 72 divided by the expected rate of return.
Therefore, if long-term patience isn’t your type, you can try using other techniques discussed in this article.
This trick comes with its own pitfalls, though. Like the high-return and high-risk investments, currencies
with the highest interest rates usually experience steep inflation rates, which could depreciate their value too.
But if you pick a currency with a fairly stable interest rate, you’ll be good to go.
Suppose you’re based in the US, opening a savings account may not be ideal since the US dollar can
reduce the interest rate by rising in value against your currency down the line.
On the other hand, if you live outside the US, a savings account could work perfectly for you and help double your money in a few years.
Furthermore, the US offers extremely lower interest rates expected to worsen in the coming years.
But the dollar is considered more resilient as it can retain its value during hard times and appreciate with time.
The Classic Way
The classic way is an investment strategy used by many in the old days.
The method involves buying stocks without leverage, charts, real-time news, and trading on margin and holding it down. Many old-school traders employed this strategy and ultimately doubled their accounts.
You can use this method as long as you trade in low-risk markets.
In this case, buy low-quantity currency pairs and hold them for months or as long as you need to realize high returns.
Forex trading offers almost unlimited profits and losses. However, it requires self-discipline,
education, and dedication to succeed.
Using the conventional 1:2 Risk-reward Ratio
If you use a risk-reward ratio of 1:2, you will likely double your investment in just 35 trades, presuming
you analyzed the market properly and don’t have losses.
Below is how it works.
|Opening Balance: 1000|
|Trade 1||1020||Trade 19||1457|
|Trade 2||1040||Trade 20||1486|
|Trade 3||1061||Trade 21||1516|
|Trade 4||1082||Trade 22||1546|
|Trade 5||1104||Trade 23||1577|
|Trade 6||1126||Trade 24||1608|
|Trade 7||1149||Trade 25||1641|
|Trade 8||1172||Trade 26||1673|
|Trade 9||1195||Trade 27||1707|
|Trade 10||1219||Trade 28||1741|
|Trade 11||1243||Trade 29||1776|
|Trade 12||1268||Trade 30||1811|
|Trade 13||1294||Trade 31||1848|
|Trade 14||1319||Trade 32||1885|
|Trade 15||1346||Trade 33||1922|
|Trade 16||1273||Trade 34||1961|
|Trade 17||1400||Trade 35||2000|
- The position trading and the long-term trends of currency pairs don’t affect their course.
- With time, you’ll learn how to identify the market cause, sell, or buy only on pullbacks, and the process will become easy as you trade.
- Common Pitfalls
The 1:2 risk-reward ratio isn’t constant and varies depending on your scope of knowledge in the trading market and risk appetite.
Since this method of doubling your income relies on accuracy, this strategy’s effectiveness depends
on your trading methods.
Going the Speculative Way
Contrary to the classic way, the speculative way involves high-risk short-term trading. In fact, what
sounds like noise to a trader focusing on a long-term goal is what intrigues a speculator.
If you’re a risk-taker/ speculator, you may find yourself attracted more to the speculative trading method.
But, you still have to follow all risk and money management principles to mitigate some avoidable risks that can result in losses.
This trading approach is the riskiest as it relies on short-term price changes that are almost impossible to interpret even for trading experts.
Using the speculative approach, you’ll have to select a risk-reward ratio most suitable for your trading style and risk appetite.
The main difference between speculative and classic trading approaches is the frequency of trade.
Assuming you went with the 1:2 ratio, take high-risk trades in a sequence and close down at 35 trades in a
few days to see if you can hit the spot once you complete the 35 trade cycle.
But still, is forex trading profitable? You might ask.
Here is the most preferred way to trade forex profitably.
The Best Way to Get a Double Profit on Your Money
Whether you’re an expert or a newbie, cracking the 35 trade cycle is a game of chance.
However, you can easily double your profits in a short time if you use a good trading strategy.
You can use an indicator, Pipbreaker, to achieve this purpose.
This indicator has built-in functions for long-term trading, short-term trading, and scalping.
In addition, the Pipbreaker generates signals with matching accuracy, enabling you to realize the
expected returns every time you invest.
The indicator also produces much more precise signals than other indicators, making it highly effective and reliable.
The Pipbreaker is resistant to market upsets and can help reduce your losses, giving you a safe
environment to double your money.
How to Outdo Market Uncertainty for the Best Trading Outcomes
Is forex trading profitable? Given the uncertain nature of the market, it is normal to worry about your investment.
What will happen once you start trading? Luckily, there are tips to help you navigate the market uncertainties
Master the game of probability – Like a coin, the market is two-sided, and you’re never 100% sure of the outcome.
So you either succeed or fail – the probability value varies from 0.01 – 99.99 percent, depending on your interpretation and analysis.
Embrace the market uncertainty – Another way to outdo market uncertainty is to be well-informed of the
market setup and understand what heightens the uncertainties. Sometimes, the most uncertain
times can lead you to greater opportunities if you diligently take advantage of the situation.
Take a break when you’re not certain – The forex trading market is characterized by several factors: interest
rate, technical trend, inflation, and GDP, which are usually unstable. When these factors align, you can enjoy trading and possibly increase profit.
However, this state can quickly change without you having the slightest idea, and with the spirit of
trading still high, everything would sink. It’s also hard to figure out if the trend will consolidate, continue,
or reverse at the very time, so it is better to stay out and watch.
Is Forex trading profitable today? A precise answer is yes! But, it will depend on your trading approach,
trading strategy, your trading discipline, and to some extent, the trading platform you use for your trade.
While there is no guarantee to rounds of winning in every trade, you close in forex markets,
using tried and tested trading approaches compounded with a good trading plan and discipline pays off.
And with the money doubling strategies, you can always double your money through forex trade and even trade forex trade for a living.