How much can traders earn?

Ted Capwell

Private investors have only been able to trade online for a few decades. Today there is an army of traders that make up millions of users and their numbers grow with every day. Forex appeared in the very early days of the internet. We’ve seen its surges and falls, however, most importantly, we’ve laid witness to the rise of new trading tools such as over-the-counter futures contracts and cryptocurrency assets. However, neither the appearance of new trading assets, not the active flourishment of online trading gives users an answer to the more pressing question of how much can traders earn using the financial trading tools at their disposal?

How much can traders earn?

There are many different stories on the topic circulating online, giving entirely disparate accounts, ranging from millions in profit to the complete loss of capital. In this article, we will shed some light on how much traders can earn. Here we will go through the various approaches to trading available and identify the financial indicators that users can achieve.

So, let’s begin with the main topic of the article. It is vital to have an understanding of the primary directions of trading out there today that online investors use to generate profit. Currently, the overwhelming majority of traders trade with three online tools:

Forex – An online exchange that provides access to over-the-counter CFD contracts on a wide array of financial assets
Over-the-counter futures contracts – an online tool comprised of futures contracts from The Chicago Stock Exchange CHX
The crypto exchange – This exchange offers specialized online trading services, such as margin trading for cryptocurrencies, as well as classic exchange operations

Every trading direction has its own algorithm for generating profit and has an array of advantages, as well as disadvantages, that go along with them. This has lead to a wide range of financial indicators for profitability and influences the level of profit generated by traders both in the long-term and in the short-term. Before we get into the nuances, you need to understand the general factors that influence profitability in trading.

What influences how profitable trades are?

Despite the variety of technical algorithms of trading tools, you’ll encounter an array of classic signs and drivers influencing traders’ results on the financial market. The following factors are worth note:

The concrete market situation – Traders are continuously working under dynamically changing conditions, which have little in common with one another. Of course, particular patterns and indicators are cyclical, however, that does not mean that there will ever be two identical situations. Therefore, investors who have a feel for the market and take a selection of professional approaches to analyzing market conditions are more likely to generate profit. For this, it is very important to not only analyze the market when placing a trade but in the future as well. Identifying trends is critical, the periods of consolidation and flats, because this is what should influence your choice of strategy for a specific trading period, and accordingly how effectively you trade.

The level of risk – Financial risk, in particular, plays a critical role in your trading results. The problem here lies not only in the potential of losing investment capital but, more often than not, in a trader’s attention to detail and psychology. The desire to profit as much as possible, as quickly as possible, as well as greed, can impair an investor’s ability to accurately evaluate their financial prospects and the trading risks. In this case, the vast majority of traders make the same mistake by increasing the total investment in one trading position and, as a result, lose all their funds.

Personal characteristics and experience – The main problem has two aspects, an investor’s psychological resilience to stressful situations and their level of experience and drive to learn new trading approaches as well. If you are the kind of trader who invests time and effort in self-improvement, can effectively analyze your past mistakes and accurately evaluate your own actions in any given situation, then you can generate highly-accurate trading indicators.

These classic drivers are universal factors that influence the trading results of any investor. Now, let consider in further detail the opportunities available to investors in specific areas of trading.


On Forex, the process of producing profitable trading contracts itself, despite the classic approach, is difficult enough. For an investor to profit, they not only need to identify the direction of price movement but the level as well. For example, in order to produce a 100% return on capital, even when using leverage of 1:1,000, the asset rate must move a minimum of 100 points. This level of market fluctuation is common, however, over a relatively long period of time. So, it can take days or even weeks to generate profit.

Moreover, by placing trades on Forex, investors are left with an all-around ineffective regime for money management. There are no clear indicators of a contract’s likelihood to be profitable. Of course, by setting a strike level for the profitability of positions, an investor can identify vital indicators. However, following some research into the psychological aspects of currency trading, a growing number of specialists are now saying that this approach isn’t entirely effective. Therefore, the loss of capital on Forex is very common.
The risks and technical algorithms at play when working with currency assets don’t identify the general financial indicator. Profitability is directly tied to the level of capital. The logic is simple, the more funds you have to invest, the more profit you can generate. It is all a result of secondary factors. Considering the operating mode of contracts, the profitability level, and complexity in regards to generating medium-term and long-term trading forecasts on Forex, we receive the corresponding low levels of liquidity. The vast majority of successful trader say that a good indicator in this sphere is 20% capital growth over the period of a year. Of course, that isn’t a lot for an active trader, taking into account the amount of time and effort necessary to do so. Therefore, by investing larger amounts of capital in typical trading conditions, you can earn a higher income.

Given these indicators, it is hard to say much about large amounts of profit in this direction of trading. Investors who can over a large number of years grow their capital or traders who pool the funds of a large number of investors in PAMM accounts can produce multi-million dollar returns. However, if you’re a beginner with a starting capital of several hundred dollars, taking into account all the possible factors that influence losses, in the period of a year, you could expect no more than 20% returns on your initial investment.

The market for over-the-counter futures contracts

Let’s start with a bit of theory. Over-the-counter futures contracts, as a financial trading tool accessible to private investors, appeared on the market not all that long ago in 2008. The general principle for generating profit with this type of contract lies in forming the correct forecast on future rate fluctuation of a specific base asset within a clearly-defined period of time. To make it slightly more comprehensible, market participants should generate a forecast on where the rates will go and how long the movement will continue. If the forecast is correct, the trader makes upwards of 87% profit (on average 85%) of the total trading position. When the forecast is proven false, 100% of funds invested are lost.

The leading problem that stands between traders and the stable generation of profit is the fact that the negative mathematical expectation of generating profit is 15%. Taking into account that the probability is 50/50 and the negative expectation of producing a positive result, it is fairly difficult to earn anything at all! If these issues couldn’t be overcome, then this type of contract would be considered as an ineffective financial tool, and simply relegated to history. On the contrary, we’ve seen surprising growth in the popularity of this tool among private traders. That means that it can’t be all bad. If you perform all the complex mathematical calculations, analysis and technical trading optimizations on the stock market, then this will be the result:

• You’ll maintain a strategic balance between profit and loss of at least 65% so as to generate a stable income. Once you’ve achieved this balance, and as a trader, you’re still wondering how much you can make because you want to exactly how lucrative it is.
• Your trading result will entirely depend on how actively you trade, your total capital and the price of the contracts you trade with. The approach you take to money management when trading has an influence as well.
• These so-called trading strategies consist of rules for conducting analysis when generating forecasts for options so as to trade stably with a positive result. These days there are an innumerable amount of these systems, however, we will consider the main ones.

In regards to the concrete profitability indicators of this trading sphere, it is worth mentioning that, thanks to simple algorithm protocols, the presence of clear trading signals (the profitability of the trading operation, its duration on the market, the level of loss), as well as the speed and trading dynamic of this tool, we rarely see this indicator shows 100% capital growth within a 24 hour period. That being said, to reach that level, you need to be a very disciplined and active trader who uses a wide array of technical strategies able to accurately identify short-term trend vectors. However, these days that is completely possible and enables you to generate highly-accurate trading signals. On average, stock market traders can expect growth of several thousand percent in a year.

The cryptocurrency market

You must have a tailored approach to investing in the cryptocurrency market, as there are many factors that influence trading results that are exclusive to it. In general, this direction of trading is very similar to working on the stock market, where the primary goal of any investor is to find lucrative assets for investing and identifying to most opportune moment to purchase the asset.

The issue is that the rise in the popularity of cryptocurrencies online has led to the dynamic growth of new crypto coins. Therefore, the number of assets on the cryptocurrency market has become difficult and time-consuming to evaluate. In turn, these factors significantly influence traders’ results. To demonstrate the possible level of income generated through trading cryptocurrencies, take the simple example of the first cryptocoin, Bitcoin. In its case, when the asset was launched on the exchange, it was worth a fraction of a penny (2009), by the end of 2017, the coin reached the level of $20,000. Potential cryptocurrency investors find this fact unsettling, which only serves to popularize this trading direction further.

So, in order to generate profit here, you need to accurately and highly effectively evaluate the perspective price growth of a specific asset. To do this, follow these simple approaches and recommendations:

• Properly evaluate the idea of the crypto-coin project – The more innovative and widespread applicability of the cryptocurrency or the more obvious its perspectives are as a payment system or in other areas of activity, the higher potential it has for price growth

• Analyze the project’s end plan – What does the developer want to achieve

• Find out how many of the cryptocoins will be released – If the cryptocurrency release isn’t limited to a certain number of coins, it is very bad!

• Learn how to withdraw from the investment – The means of monetization, the dividend payment scheme, the methods of buying and selling the coin

Follow these recommendations when you are choosing an asset to invest in and you will find the most lucrative tool to invest funds. With regard to the possible level of profitability of this approach to trading financial assets, if all goes well, investment activity can total tens of thousands percentage-wise, however, don’t forget about the financial risks, you could lose it all!


A trader’s profit level is determined by their preference of which direction to trade, their activity on the market, their ability and their forecasting approaches. In general, every investor has the ability to regulate their own profit level, taking into account the nuances of trading with different financial tools. If you operate within a specific category, then you need to participate in that system in order to know the level of profit you can make!


“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”