Many forex traders want to know how to make $3000 a month. And probably for good reason. For a lot of people, generating that kind of money every month is potentially a full-time income. In this article, we’ll go through this popular target and some ideas on how it could be achieved with forex trading.
How to make $3,000 a month with forex trading
Before we explore this topic, first of all, we need to consider some forex trading psychology.
Perhaps the most important forex trading rule of all is that your expectations are realistic.
That’s because forex trading does not reward unrealistic expectations or fantasy, or excitement. It prefers to reward discipline, patience, and consistency instead.
A lot of people think you can make $3,000 a month by putting a couple of hundred bucks in a forex trading account, increasing it six-fold or even ten-fold, and withdraw the profits at the end of the month and do it all over again the next month. And the next month, and the month after that.
It’s time to take a reality check: that just isn’t going to happen.
Yes, it’s theoretically possible, but it’s extremely unlikely. You would end up risking so much of your account per trade, that the likelihood of you losing everything is enormous. You will almost certainly blow the account.
If you’re serious about making $3000 a month with forex trading, you should eliminate risk wherever possible.
An obvious route map to this target is:
- Create and test a trading strategy on a demo account, to prove that it’s profitable.
- Once you’ve got a profitable strategy, trade with a proprietary trading firm (prop firm) instead of your own capital.
Prop firm trading
Prop firms are awesome because they allow you to trade with significantly larger sums of money than you would be able to trade with on your own.
You don’t have to pay for any losses out of your own capital, because most prop firms cover the risk themselves. And the majority of the profit goes to you. In some cases, up to 90% of everything you make.
How to make $3000 a month – video analysis
Here’s a fantastic video breakdown from Arty, the man behind The Moving Average, an extremely popular forex trading YouTube channel, on how he actually achieves this goal.
Arty uses a $50,000 account and trades just one pair, AUD/USD. His trades have a risk-to-reward ratio of 1:2, and he never risks more than 1% of the account balance per trade. With this risk management strategy, he can lose two trades, win the next one, and still break even.
As for his actual strategy, he focuses on the 15-minute time frame, with support and resistance levels plotted on higher time frames. He then uses the 21, 50, and 200 Smoothed Moving Averages to identify trends and move with them.
In one month and in just nine trades, Arty makes 6% – which is $3,000. Pretty impressive, right?
And the secret? It’s actually no secret at all – just patience, discipline, excellent risk management, and keeping a journal of your trades.