What is My Income Earning Potential in Online CFD Trading

Online CFD trading comes with risks, and obstacles. Which wise traders see as opportunities. In fact, no obstacle in life is ever seen as a totally bad thing.

Online CFD Trading Reflects Life Itself

Online CFD trading through the volatility of the financial markets, reflects life itself. Which is full of obstacles and challenges, as well as huge disappointments from time to time. The truth is humans are made to face and solve problems. The biggest problem we can have is having no problems at all. With every problem comes a challenge, and this keeps us motivated. Financial trading is difficult and tricky, but those determined enough to tackle its problems. They do make it through successfully. The good news is that no one can fully assess the true skills of any single person. Because humans have very strong imagination and problem-solving skills. And that’s why limits are exceeded. When it comes to CFD trading, it is also impossible to estimate the amount of success a trader can achieve. Some traders achieve consistent profitability in less than 5 years of active trading. And they are a minority, since most successful traders go through decade-long learning curves.

How Much Can I really Earn from Online CFD Trading?

Earnings from profitable online CFD trading depend on account size, trade size, and many other factors. But it is realistically possible to fund a CFD account with $5,000, and to make the equivalent of a basic salary, of around $500 to $600 per month. Which in some countries is enough to live on, in other countries is nowhere near enough. This is a conservative estimate, based on a strategy which is relaxed, and imposes little stress on the trader. But basically it safe to assume that a good trading strategy can make 10% per month, without taking silly and excessive risks. Traders living in high cost cities will have to scale up their trade size, and account size, in proportion. Traders who are wise and confident enough to scale up, do use $30,000 or more, in their CFD accounts. Traders on the other hand, who are not as confident in the markets. Or traders who don’t know how to trade CFD contracts to the best of their potential. May have to trade slower, and expect smaller monthly gains, perhaps 5% or 7%.

Leverage  and Account Size Matter!

Leverage in CFD trading is provided up to high levels. But wise traders never really use more than 100:1. That is the best leverage level. Any online CFD course which recommends using either lower or higher leverage may fail to address key risks. Risks such as account survivability and maintaining sufficient margins so as to implement hedging trades. And hedging losing trades, at least temporarily, is a very smart concept to look into. In any case, traders need to trade at small size relative to their account size, use leverage of around 100:1. And to also use large stop losses, definitely larger than many market gurus would suggest. By taking these requirements into account, traders can trade safer and better. Because most traders blow their accounts because of over-leverage and small account size. Many traders actually have partially winning strategies, but the timing of the trades is often off. And because either the account is too small, or the leverage used is too much. The account is stressed to the limit, and they are unable to sustain their losing trades for just few more days. Then the market turns around and moves in the direction that they had originally anticipated!