With a surge in interest in forex, investing and having a side hustle, there are a lot of new traders coming into the markets looking to just make small amounts of money daily to boost their monthly income. The forex market is very liquid and can provide a huge amount of opportunities for traders to capitalise on each and every week. With that being said though, can you make $100 daily with forex?
It’s very possible to make $100 daily from forex trading, but the majority of traders will fail at this due to lack of risk management. Due to the amount of opportunities in the forex market, paired with leverage offered by brokers, earning $100 daily from forex is very possible but this will come after months of mastering the markets. Let’s take a look at how realistic this really is…
- Is Making $100 Daily From Forex Realistic?
- How Much Money Do You Need To Make $100 Daily From Forex?
- How To Start Making $100 Daily From Forex – A Step By Step
- In Summary – Can I Make $100 Daily With Forex?
Is Making $100 Daily From Forex Realistic?
The forex market is a 5 trillion dollar per day market and is by far the most liquid market in the world. It’s more than possible to expect to make $100 daily from trading forex, being that it’s rife with opportunities, liquidity and brokers offer very high leverage to traders.
With that in mind, 90% of traders actually lose money due to a lack of knowledge and risk management, leading to them eventually losing the majority of their trading capital. However, if you’re a consistently profitable trader and actually dedicate the months, or even years, to studying the markets, $100 daily is a very achievable goal.
Thinking In Percentages, Not Money
When you start trading forex it’s natural to only think about the monetary value of the trade (how much money you’re risking and how much money you’re making in that trade). Although there’s nothing technically wrong with that as we are all here to make money trading forex, it’s much better to view your trading in terms of percentages and ignore money. There’s a few good reasons for this:
- When you come to compounding your forex trading account, it’ll be crucial to work in percentages to increase the rate of growth.
- In terms of psychology, having large money floating in losses and drawdowns can be extremely hard and lead to mismanagement of trades. However, looking at floating losses and profits as percentages is much easier to deal with.
- It’s easier to monitor month on month growth, with money.
- It’s much easier to set fixed risk with percentages, rather than a monetary figure.
It’s definitely natural to think ‘I want to make X amount per day trading forex’ initially, but after a few months of being in the markets you should start to view it as a percentages game.
Thinking Monthly, Not Daily
Although the forex market is very liquid and currencies will typically move a lot in a day, there isn’t always good opportunities everyday. By putting pressure on yourself to make $100 every single day in the forex markets, you’re likely to start taking lower quality trades that break your trading plan. This can lead to frustration, mismanagement of accounts and worse trading results.
I’d highly recommend thinking of your trading as a business, rather than just something you do everyday. Businesses typically don’t look at profits and revenue daily, they would look more on a monthly or even quarterly basis.
It’s important to know that some days or even weeks in the forex markets can be slower, due to a number of economic factors like before NFP or any other huge news announcements. As you can see in the screenshot, GBPCAD has been extremely slow and range bound over the last few days – trying to force trades during that time would be unwise and most likely lead to losses.
How Much Money Do You Need To Make $100 Daily From Forex?
It’s all well and good knowing that you could make $100 trading forex each and every day, but how much money are you going to have to invest in order to make that happen? We’ve covered, in a lot of depth, how much money you need to start trading forex in this article but let’s cover it again here in brief.
Let’s use some basic, average numbers to work out the account balance needed:
- You’ll want to be risking no more than 1% per trade, in order to net your $100 profit.
- You’ll need to have a risk:reward ratio of at least 1:2, in order to remain profitable.
- Therefore, you’ll be risking roughly $50 per trade, to make $100 profit – on average.
For a trade with $50 risk (being that we want this to be 1% risk, you would need an account of at least $5000 to remain safe within the forex markets. If you’re coming into the forex markets with $5000, I would certainly advise using one of the top forex brokers and stay away from the offshore, unregulated brokers.
We know that you will need a $5000 account in order to safely make $100 daily trading forex, but that doesn’t guarantee you’ll be able to make that profit. As we have already discussed, 90% of traders are going to lose money anyway, regardless of their account size. By limiting our risk to only 1% per trade though, we put ourselves in the best position to limit drawdown, limit the psychological effects of drawdown and hopefully protect your trading capital.
Can you trade forex with less than $5000 and still make $100 daily?
If you don’t have enough capital to invest $5000 into your trading account, it may lead you to starting with less capital, say $1000. This can lead to over leveraging as you’ll be trying to make 10% per day in the markets. This means you’ll be risking roughly 5% per trade. After a pretty savage losing streak and a slip of your emotions, you could easily lose 100% of your trading account, with 5% risk.
So, what should you do? I’d recommend looking into prop firm funding.
Prop firms are essentially trading companies that will offer you a large funded account, for a small fee. You will trade their capital in exchange for a 60-70% profit split at the end of every month – with 0 risk to you! An example of this would be DT4X Trader. They will give you a $10,000 trading account for just $275. Or even a $50,000 trading account for $575. It’ll be much easier to make $100 daily in the forex markets with $50,000, rather than $1000!
I actually have a handy list of the top prop firms here, for you to compare and contrast your options. Some prop firms like FTMO require you to do a challenge to prove your profitability, where some firms like MyForexFunds instantly fund traders with no challenge!
How To Start Making $100 Daily From Forex – A Step By Step
Now that we have covered exactly how much money you’ll need and how realistic it is to make $100 daily trading forex, we need to look at how we can actually do it – some actionable steps to get you on the right track…
1. Learn To Trade Forex, Properly
The first and most important step is going to be to learn how to trade forex, properly. We have a list of the Top Forex Courses and I’d certainly recommend checking them out. You don’t have to pay for a course necessarily, there are plenty of free resources online, like Babypips, where you can learnt to trade without spending a penny.
In all honesty, you’re most likely going to pay for a forex course. I’d recommend having a look at Trading Masterclass or perhaps Transparent Fx. When you’re first exposed to forex, you don’t know what you don’t know. I personally had a few good weeks on a demo account just messing around, thought I’d figured it out, went live and lost my whole account instantly. Take your time learning, it’s not going to be a 5 minute process but once you have learned to be a consistently profitable forex trader, you’re going to be able to scale this up – fast.
2. Practice On A Demo Account For Months
Don’t rush into trading live, it’s just going to cost you money – trust me, it cost me a lot of money. As I’ve said many times before, you really don’t know what you don’t know and after being in the industry for nearly 5 years I’ve seen hundreds of traders losing their live accounts in the first few weeks of their journey.
All of the best forex brokers offer free demo accounts where you can practice, exactly the same as with real money, but with 0 risk. I personally recommend an ECN broker like IC Markets to start with.
It’s important that not only do you trade the demo account for a few months, you have to trade it like real money. What do I mean by this? I mean use 1% risk per trade, use a stop loss, use a realistic amount of trading capital and manage trades like you would with real money. I would even go as far as to say track your trading results with MyFxBook.
If you can’t consistently make $100 daily on a demo account, you’ll never be able to with live money – remember that! Once you’re consistent, then you should be moving onto trading real money accounts.
3. Deposit On A Live Account, Or Get Prop Firm Funding
Once you’ve proven yourself to be consistent and profitable on your demo account, it’s time to sign up with one of the top forex brokers and fund a live account. For this, again, I’d personally recommend IC Markets.
If you’ve read our ‘How much money do I need to start forex’ article, you’ll know that we recommend starting with a minimum of $1000. To remain as safe as possible whilst trying to make $100 profit daily from forex, an account of closer to $5000 would be much more realistic. But what if you can’t afford that?
Well, forex prop firms like DT4X Trader and MyForexFunds offer large trading accounts to forex traders for a small fee. You will trade the companies money and keep around 70% of the profits each month. This can be a great option for traders looking to make around $100 daily from forex, as you can get an account worth upwards of $100,000 – meaning you can risk a very small percentage per trade. I have a whole list of the top prop firms here, so check it out!
4. Risk 1% Per Trade With Your Trading Strategy
Now that you’re:
- A consistently profitable trader
- Have a funded live account, or prop firm funding
You’re ready to go! Now you should be risking around 1% per trade, sticking to your trading strategy and taking profits out of the markets. Don’t focus on the daily results, look at the monthly and quarterly results, like a business would! This is your business after all.
In Summary – Can I Make $100 Daily With Forex?
It’s possible to make $100 daily within the forex markets, but certainly not easy. Around 90% of traders that try to do this will end up losing money over the longer term. If this is your goal, you need to dedicate years to learning to trade forex, manage risk and compound your trading account.
Not only that, the forex market is heavily moved by fundamentals so there’s unlikely to be high quality trading opportunities each and every day. It’s much more realistic to look at earning an amount of money monthly, than it is per day. I’d recommend thinking in terms of percentages too, rather than monetary amounts as thinking about money in each trade can be hard to work with psychologically, especially if you’re on a losing streak.
If you have any experience trading and making $100 daily from forex, I’d love to hear your feedback in the comments down below.