How much do traders earn, examples and specific figures
The most common question that newbies ask is – How much do traders earn?
It is quite difficult to answer such a seemingly simple question, the reason for this is that traders do not have the rates and salaries we are accustomed to.
The work, so to speak, is piecework and the amount of earnings directly depends on the abilities of the exchange player and on the amount of capital with which he works.
Therefore, work efficiency is often assessed not only in absolute values, but also as a percentage relative to the deposit.
In this case, the annual income is assessed, and not the monthly salary, since in different months the trader could trade with different efficiency.
At the same time, the working deposit at that time was in the amount of $80,000, that is, I earned 62% of the deposit amount in a year. This amount may seem small to some, but it is what it is, besides this I have other sources of income.
How much do traders earn depending on the exchange?
It should be noted that the amount of earnings also depends, not least of all, on which market you trade and which strategy you use.
You can buy shares and calmly wait until they rise in price for a couple of years, while receiving dividends, or you can open a hundred Bitcoin transactions per day.
The foreign exchange market allows you to earn the most money due to the large amount of leverage . Now its size reaches 1:3000.
It is on Forex that such strategies as scalping and pipsing ; some traders manage to earn money by trading currencies up to 1000% per month of the initial deposit.
In fairness, it should be noted that rarely anyone can trade for a long time with such efficiency; the use of risky strategies often leads to a complete loss of the deposit .
Stock and commodity markets - here traders do not earn much, on average, from 30 to 100 percent per annum.
But this income is less risky and more stable, and the amount of deposits in the stock market is usually several times greater than in the foreign exchange market.
Also in the stock market, trust management is more often practiced, when traders trade clients’ money.
How much money do traders earn in specific figures?
To be more objective, let’s look at examples of annual earnings and not talk about random records.
The most famous example of making money on Forex is the record of Larry Williams, who was able to increase his deposit from 10,000 to 1 million 147 thousand dollars in a year.
There are more impressive results, for example, John Paulson, manager of the Paulson & Co hedge fund, earned $5 billion in 2021. Moreover, the bulk of the earnings came from transactions with securities.
In 2016, the record holder was James Simons from Renaissance Technologies; this trader earned $1.6 billion in a year.
There are many other equally impressive examples of how much successful traders earn. For most people who open transactions on the stock exchange, trading is more of a hobby than the main source of income; their earnings amount to several hundred dollars a month.