My full-time job and only job is trading forex. I make $100,000 a year doing so and need to make at least this much to keep up with the cost of living in New York City. The first year I started, my expectations were to have returns of 20% a year while risking only about 1% on any given trade. Based on my calculations, I needed $500,000 of starting capital to realize these expectations. I withdrew a half million dollars ($500,000 USD) out of my bank account to use as my initial capital. This was just money I had laying around and could easily afford to lose. I'm doing great.
This is not a true story but I figured I'd write it as a way of answering a comment I recently received. The comment was:
".... I don't understand why do you need a job... if u know and understand so much about forex ... why do you need a job?"
I'm not berating the commenter. It's a great question and one that I felt needed to be addressed. Does my make-believe story answer this question? I'm sure it is possible to make a six-figure salary trading forex with less capital but at the expense of using higher leverage consequently taking on more risk. But don't be lured by the marketers promises of untold riches. The bottom line is if you want to make money trading forex, you need money. How many sites have you seen pop up over the years that are dedicated to turning $1000 into a million dollars in a year trading forex? I've seen quite a few. They last 30 days and then the person running the site mysteriously disappears never to be heard from again.
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