What do you think Professional Forex traders Make? | Forex Factory

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What do you think Professional Forex traders Make?

  • #1
  • First Post: Jan 16, 2006 7:43pm Jan 16, 2006 7:43pm
This could be a silly question, but I was just wondering if anyone can estimate how much a professional forex trader might make.

Obviously this depends on the size of their account and how much they want to risk, but I was unsure if there are any implications in trading once you have so much money (maximum on trading lots, etc.?)....

Thanks for your input!
  • #2
  • Jan 17, 2006 1:32am Jan 17, 2006 1:32am
Quoting newbieforexer
This could be a silly question, but I was just wondering if anyone can estimate how much a professional forex trader might make.

Obviously this depends on the size of their account and how much they want to risk, but I was unsure if there are any implications in trading once you have so much money (maximum on trading lots, etc.?)....

Thanks for your input!
Though not a "professional", but yesterday I made $150000 with 2 trades. Account size was $5m. Lots traded was 100.

With this account size, I've notice that you're more relaxed. You only need a few good trades. Also, the peace of mind knowing that 2% of your account size gives you a big stop-loss (100 pips in this case). I've also stopped looking at the number of pips profit/loss, but rather to the dollar amount.

Cya
Habeeb

PS: currently standing on $20k for today
Keeping it Simple
  • #3
  • Jan 17, 2006 4:06am Jan 17, 2006 4:06am
Did I mention that this IS a demo account. Quickest way to feel like a millionare ... InterbankFx demo.
Keeping it Simple
  • #4
  • Jan 17, 2006 11:09am Jan 17, 2006 11:09am
Shame you added the note that it was demo. Thought I was in the presence of a 'Market Wizard' for a moment.

I believe it is best to think in pips rather than money, especially if you suddenly increse your account size.
  • #5
  • Jan 17, 2006 5:51pm Jan 17, 2006 5:51pm
Quoting hagadol
Shame you added the note that it was demo. Thought I was in the presence of a 'Market Wizard' for a moment.
Sorry for bursting the bubble

Quote
I believe it is best to think in pips rather than money, especially if you suddenly increse your account size.

I don't think so. The reality is the money. If you made 20 pips a day, you'll eventually get frustrated with the slow progress and then the greed and mistakes will start to creep in. But, if you made $1000 a day (same 20 pips), then you'll be more relaxed and more focussed.

I don't think the pro's count pips.

Take Care
Habeeb
Keeping it Simple
  • #6
  • Jan 17, 2006 6:17pm Jan 17, 2006 6:17pm
Quoting newbieforexer
This could be a silly question, but I was just wondering if anyone can estimate how much a professional forex trader might make.

Obviously this depends on the size of their account and how much they want to risk, but I was unsure if there are any implications in trading once you have so much money (maximum on trading lots, etc.?)....

Thanks for your input!
I don't think the question is how much, but simply "How?" How do they do what they do in order to be considered a professional? I would consider myself to be a Professional Forex Trader if my wife and I did not have to work for someone other than ourselves as a result of my consistent profits. I would not owe anyone any money as a result of my consistent profits. I would only trade 3 days per week and enjoy life the other four as a result of my consistent profits. I may not own million dollar homes, cars, boats, etc. as a result of my consistent profits, but me and everyone associated with me would be very comfortable. There is no dollar amount that can be determined in order to reach such a status, but reaching goals and dreams can certainly qualify one as a professional.

Hope that helps,
Mark
Because helping each other is a good thing.
  • #7
  • Jan 17, 2006 7:23pm Jan 17, 2006 7:23pm
I think a profesional trader should make arround 30 to 50 pips a day. Well my boss make between 500 to 700 pips in a month for eurdoll only, is that a lot??

protraders......
  • #8
  • Jan 17, 2006 10:22pm Jan 17, 2006 10:22pm
How much does a pro make?

If I told you, would it make any difference in YOUR trading? Would it make you more disciplined or would you go for the fences? Would you finally do the things pro's do to get where they are?

I'm not trying to dis anyone or be a smart-ass, but asking the question says more about you than any dollar amount I tell you I make. I know everybody would love to have figures, but they are meaningless to everyone but me.

I simply don't care about money when I trade. I trade the trade. I know what I can handle before I push the buttons, so money doesn't become the issue. If every pro had to trade with actual cash, trading wouldn't have 1% of the volume it has.

Happy trading everyone
vegas
  • #9
  • Jan 18, 2006 12:38am Jan 18, 2006 12:38am
Quoting newbieforexer
This could be a silly question, but I was just wondering if anyone can estimate how much a professional forex trader might make.
well, if your Bruce Kovner, you make about 300mil a year. if your a pro at goldman, your probably taking in around 10mil. if your a CTA, your probably making few mil per year. pretty much everyone else is paying these guys salaries

these are generalities, check out market wizards to read some case studies on individual traders, you'll find there is a large range of personalities and profits.
Relax and be happy.
  • #10
  • Jan 18, 2006 9:05pm Jan 18, 2006 9:05pm
Avergae trader makes 100k per year. Average hedgefund manager makes 400k per year.
  • #11
  • Jun 14, 2009 3:32am Jun 14, 2009 3:32am
Quoting habeeb
Did I mention that this IS a demo account. Quickest way to feel like a millionare ... InterbankFx demo.
omg i was shoked till death with all those figures....
  • #12
  • Jun 14, 2009 8:31am Jun 14, 2009 8:31am
Quoting johns
Avergae trader makes 100k per year. Average hedgefund manager makes 400k per year.
Hmm. OK. Sure.
There's always money in the banana stand.
  • #13
  • Jun 14, 2009 8:53am Jun 14, 2009 8:53am
Quoting johns
Avergae trader makes 100k per year. Average hedgefund manager makes 400k per year.
Ex: 1 trader makes $1 000 000/yr
9 traders make $0 /yr

====> Average trader makes $100 000/yr
  • #14
  • Jun 14, 2009 11:42am Jun 14, 2009 11:42am
Any trader worth his salt would be compounding so hopefully no 2 years profits would be the same, better to ask about % of invested capital.
Economists have forecast 9 out of the last 5 recessions
  • #15
  • Jun 15, 2009 4:21pm Jun 15, 2009 4:21pm
Quoting habeeb
Did I mention that this IS a demo account. Quickest way to feel like a millionare ... InterbankFx demo.

LOL i was about to call major BS on you right there lol. it does NOT become easier, quite the opposite and it's not because of the amount of money either. it's mainly because instead of trading your own money, you are most likely trading other people's money. and the more money you have, the more clients you likely have and the more people you can possibly let down. that becomes pretty stressful after a while. especially when trading a 6 mil account and a one percent loss is 60K.

as for the professional trader thing, you need to make a distinction. a PROFESSIONAL trader is one who works for a bank, an investment firm, a broker, or any other financial institution. a FULL-TIME trader is one who either trades his own money or others' as a CTA or CPO. although technically, a CTA is a professional trader, they are two different concepts.

PROFESSIONAL traders earn a salary possibly with a commission aspect. salaries probably range anywhere from 50-60K a year to 300-400K a year. commissions can add another 30-50K to either of those numbers.

a FULL-TIME trader, one who trades his money or others' full time, can make much more than that, but also much less. a trader who has been in the market for years and has a bunch of clients can probably net 1-2 mil each year easy. probably even more. a typical full-time trader will probably make anywhere from 75K to 300K a year. the money flow for one of these guys is variable based on skill, experience, and market conditions.

so yeah, i'm assuming you are talking about the full-time type of trader so it can honestly be any number that you make it. like i said, it depends on a ton of factors. if you are thinking of going full-time, good luck to you dude. i wish you the best.


a quick note: these are all low estimates. i'm sure there are tons of traders out there who make much more than these numbers. imagine these as more of a starting salary or something.
  • #16
  • Jun 15, 2009 4:42pm Jun 15, 2009 4:42pm
LMAO! some of these answers are blindfolded dart throws......A "pro" trader looks at ROI and the end of at least a month if not longer and runs trades out to completion....the amount he makes, is or should be of secondary concern... He finds the best of the best trades and only takes those..He trades set ups like Vegas said. he may not trade for days waiting and watching....expect to make single digit returns a month with a couple big months mixed in, because he can't be an adrenaline rushed balls to the wall trade junkie
  • #17
  • Jun 15, 2009 5:02pm Jun 15, 2009 5:02pm
Quoting waves
LMAO! some of these answers are blindfolded dart throws......A "pro" trader looks at ROI and the end of at least a month if not longer and runs trades out to completion....the amount he makes, is or should be of secondary concern... He finds the best of the best trades and only takes those..He trades set ups like Vegas said. he may not trade for days waiting and watching....expect to make single digit returns a month with a couple big months mixed in, because he can't be an adrenaline rushed balls to the wall trade junkie

ummmmmm let me guess, more than five years of experience right? you make "X" amount of pips a month - guaranteed!

i'm sorry but some of your "facts" are really specifics applied to a very subjective and general term. not every pro trader waits and watches for days. those kinds of people are a minority, albeit a famous one. as for the best of the best trades thing, you can never know how good a trade is going to be until after you are closed out. so if he is taking the best of the best trades, hes not calling them that while he's trading. the fact that he has a ton of good trades is a reflection of his skill as a trader, not the fact that he can choose the "best of the best" trades. also, the whole "makes only a few trades a month" stuff is just wrong. most "pro" traders need a consistent return so they cant afford to not make any trades in a month. they need to be trading all the time. most professional traders at institutions make 10 to 20 trades a day. most individual pro traders make at least 1 or 2 a day. at LEAST. i dont know where you are getting your info dude

as for the ROI thing, he wasnt asking how people thought of their profits, whether they are looking for pips, dollars, or a percent. he asked how MUCH MONEY THEY MADE. he asked for a dollar amount dude. a percent is fine, and you are right, that is so much more important than a dollar amount, but that isnt what he asked.
  • #18
  • Jun 15, 2009 5:23pm Jun 15, 2009 5:23pm
Quoting markmm
Any trader worth his salt would be compounding so hopefully no 2 years profits would be the same, better to ask about % of invested capital.
From Your, present, viewpoint.
Actually,there comes a point where, Compounding is a bad idea.

Think about it...
  • #19
  • Jun 15, 2009 5:25pm Jun 15, 2009 5:25pm
I once made $17.
  • #20
  • Jun 15, 2009 5:27pm Jun 15, 2009 5:27pm
Quoting Bemac
From Your, present, viewpoint.
Actually,there comes a point where, Compounding is a bad idea.

Think about it...
When your orders are getting partially filled or moving price as they are so big? I would love to have that problem!
Economists have forecast 9 out of the last 5 recessions
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