Is forex trading worth it or is it a waste of time and money? This is the question that most people ask. They ask the same question about stock trading too. The answer depends on who you ask the question. If you ask those who have lost their shirts in Forex trading, the answer will be a big NO definitely. If you ask the consistently profitable Forex traders, who can be found very rarely, they will answer yes, but at the same time they will explain how to do it, not to waste time and money.
Is Forex Trading Worth It?
If you are looking for a quick answer to whether Forex trading is worth it or not, I must say yes and no. If you succeed to become a consistently profitable Forex trader, then the answer is yes. Forex trading makes lots of money for professional and consistently profitable Forex traders. If you can succeed to reach this level, it can even make you a millionaire. However, for those who cannot become a consistently profitable Forex trader, it can be nothing but wasting time and money. So, if you really like to know the answer to this important question of whether Forex trading is worth it, make sure to read the rest of this article.
What Is Forex?
Most of those who ask, is Forex trading worth it or not, they don’t know what Forex trading is all about. Forex trading is a business that is based on buying and selling currencies against each other. Forex traders learn how to guess the next direction of the currencies’ prices. Then they buy and sell according to their forecasts. When they are right, they will make profit. However, if they make any mistakes in their predictions, they will lose. Read this article, if you are new to Forex and you don’t know what Forex trading is all about.
Like other businesses that only some of them become successful and make profit consistently or they succeed to grow their profit from time to time, many Forex traders lose and wipe out their trading capital several times. Also, some Forex traders risk too much money in Forex trading and before becoming a professional and consistently profitable Forex trader (read this). They lose their shirts and Forex trading becomes a disaster for them. If you ask these traders, is Forex trading worth it or not, many of them will say “no” because they are upset. They accuse the Forex market or brokers for their losses. Although some Forex brokers make their clients lose, still most Forex traders lose because of their own mistakes.
It means, this question, whether Forex trading is worth it or not, should not be asked from losers. You should ask the fair Forex traders who have been profitable for a reasonable length of time. If you ask the wrong people, they can easily mislead you.
It is not only the Forex losers who can mislead you. Some so-called Forex traders exaggerate about their success, or they even talk about the huge profits they have made, whereas they have never been able to make any profit as a real Forex trader and in a real trading process.
For example, there are some novice Forex traders who get lucky and turn a small account into thousands of dollars with one trade. It is like winning the lottery that can happen for one person out of millions who buy the lottery tickets. However, these Forex traders get overconfident and think that they have become the best Forex traders of the world by taking just one position. And, if you ask them, is Forex trading worth it or not, they will say, “Definitely! You can turn a small capital into thousands with one click.”
As a result, you will wipe out your capital if you try to copy these lunatic people. Years ago, I read a book about some of the best and most successful Forex traders. One of them could turn a $1,000 account into $70,000 with one position. The shocking thing was that the author of the book had included this person as one of the best and most successful Forex traders of the world. It is stupid, isn’t it?
Being faced with these kinds of Forex traders is a big bad luck for a newbie trader because they make them think that they can repeat their fake success. You will lose your capital once you try to copy these people. Therefore, if someone tells you that they are a great Forex trader who can enable you to duplicate their success, ask for their track record. If they refused to share their track record, just run away from them.
Successful and profitable Forex and stock traders must have the minimum of a few years of track record to prove that they have been trading and making profit professionally and consistently. Even many of these traders have been losing for a long time, before they find and follow the right track. That is why they will tell you that Forex trading is worth trying and spending time. However, if they are honest, considerate and caring, they recommend you start from the right track, not to repeat the same failures they had.
Is Forex Trading Worth Losing Money Before Becoming Profitable?
You don’t have to lose money to become a profitable Forex trader. Those who say Forex trading is worth losing money are 100% wrong. It is like you say, “becoming a good driver is worth getting accidents”. It doesn’t make sense. It is insane. Forex trading is worth spending time, but it is not worth losing money. Losing money can cause you to give up on Forex trading for good. It can establish and develop fear in you that won’t allow you to trade properly. However, if you learn how to trade Forex without losing money, you will build the confidence you need.
In a more detailed article (here), I have explained how to become a professional Forex trader. In that article, you will see that becoming a professional Forex trader has a long process, but it doesn’t need you to lose money at all. Forex trading is worth trying and spending time, only if you do it in a way that I have explained in that article. Those who say you must practice with real money to learn how to manage your losses and not be afraid of losing money in Forex trading, are 100% wrong.
If Forex Trading Is Worth It, Then How Much Money I Am Going to Make With It?
Yes, Forex trading is worth it because you can make lots of money with it. Your Forex trading income has to be explained in detail, in a different article. For example, in this article I have explained how you can turn a small $500 account into hundreds of thousands of dollars, IF you become a consistently profitable Forex trader.
Lucky Forex traders are the ones who follow the steps that I have explained here. They will become professional Forex traders without losing any money. Even if you have lots of money to risk in Forex trading, you should not do it because risking and losing too much money don’t make you a professional Forex trader. Forex trading is worth spending time, when you succeed to grow a small capital into a big wealth, at the beginning of your Forex trading journey and after becoming a consistently profitable demo-trader.
The reason is that this process will build your confidence and will improve your skills in trading with real money. However, when you start with a big capital at the beginning, your mind always magnifies your losses, and ignites some emotions that will trigger more wrong positions and losses. For example, you take revenge positions that is a horrible behavior for a trader. The most important thing that you must note is that it is your money that is worth protecting, more than making money in Forex trading. Forex trading is worth spending time on, only when you start with risking a small capital and growing it into a big wealth.
Even if you can afford to start with a big capital like $200,000, you should not do it, and you’d better start with a $20,000 account and let the rest of your money stay in your bank account. If you make 20% profit per month, which is a reasonable profit for a Forex trader who has become consistently profitable, your $20,000 turns into $213,986 after 13 months of trading. Most Forex traders don’t do this calculation before they start with their first live account, and so they don’t know how much money they will have if they start with a small capital and grow it slowly but surely.
Calculations like this are worth doing and looking at them every day to remember where you currently are and you will be after one, two, three years of trading and beyond. That’s why we have created an Excel Spreadsheet to enable you to do these calculations. This article is worth reading it, every now and then, to (1) prevent yourself from risking your hard-earned money, (2) keep yourself always in the right track, not to forget where you want to reach after different time frames, and (3) prevent you from getting emotional to over-trade or risk more than what is recommended.
Forex Trading Is Worth Spending Time
According to what you learned above, and also based on the articles that I have placed their links in the text above, and also based on what our Excel Spreadsheet tells you, now you know that Forex trading is worth spending time to learn the basics and master your trading system to become a professional Forex trader eventually.
What other business do you know that can turn a $500 capital into $354,401 after three years, just by making a 20% profit per month? There is no such a business in the world. Therefore, Forex trading is worth spending time to master.
And, for those who say it is impossible to make 20% profit per month, I must explain that if you master your trading system the way I’ve explained here, and you succeed to take 1:2 positions (which means if your position hits the stop loss, you will lose 2%, and if it hits the target, you will gain 4%), and while your success rate is only 50%, you can make much more than 20% profit as a day trader. In the above example, I have considered the worst case scenario for a professional Forex trader. However, many professional Forex traders are able to have much better positions with higher R/R ratio, and will have a much higher success rate. If you cannot make a 20% profit per month by taking a 2% risk in each of your positions, you haven’t become a professional and consistently profitable Forex trader yet and you need more practice.
Forex Trading Isn’t Worth Spending Money
As I’ve explained so far, you must spend time and energy to become a good Forex trader, but you should not spend or waste money on it. Everything you need to learn can be found on the Internet for free. You don’t need more than what we have on our website. And, once you reach the level to start trading with real money, you should not open a big live account, as I have explained above. You can easily grow a $1,000 to $5,000 account into millions, if you don’t lose your patience and not to try to shorten your way and boost your profit by taking too much risk, overtrading or trying several different trading strategies. Consistency is the success key here.
Therefore, although Forex trading is worth spending time, it is not worth spending money because you don’t have to spend money to become a good Forex trader, and you don’t have to risk too much money to start making real money through Forex trading.
Forex Trading Is Worth Your Patience
Patience and consistency are the success key in this business. Those who try to get rich through Forex trading overnight will fail and will wipe out their accounts. Make sure to learn more about this here, here and here. So, Forex trading is worth spending time and being patient. If you are ready to do it, you can start from here.