Can you make money trading

Updated: 7 November 2026

In short: You can, but most beginners lose money. European brokers must publish the figure, and between 70 and over 80 percent of retail CFD accounts lose. Those who make money learn, calculate their risk and stick to their own rules for years.

Why most people lose

A beginner enters without a plan, risks too large a share of the account, skips the stop-loss and tries to win it back after a loss. No strategy survives that kind of money handling.

What sets profitable traders apart

A fixed risk per trade — usually 0.5–1% of the account. A trading plan with entry and exit rules written in advance. A trade journal and an honest review of mistakes. And time: the skill builds over months, not a week.

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Account curve

Realistic expectations

Promises to "double your account in a month" are a sign of fraud or gambling. A sensible goal for the first year is to learn not to lose money and to keep statistics, not to get rich.

Why "a steady 10% a month" is a red flag

Even well-known funds consider 15–30% a year a good result, and in some years they lose money. Someone promising a steady 10% a month is promising 214% a year — not even professionals with huge resources trade like that. Behind such promises there is usually a course, a signal channel or outright fraud being sold.

An example of honest statistics

A trader risks 1% of the account per trade and uses a 1:2 reward-to-risk ratio. In a month there are 20 trades: 9 winners (+18%) and 11 losers (−11%). The result is +7%, even though they were wrong more often than right. Another month may end at −5%. This is what real trading looks like: an uneven curve and a result that depends on following rules, not on "intuition".

Where to start if your goal is to earn

Not with hunting for a strategy "that works" but with testing yourself. Make 50–100 trades on a virtual account using the same rules and log every one. If you did not end up in the red and kept your risk, you can think about a small real account. If you did, you just saved real money. In Extremum your virtual results are compared with a "twin" — you, had you followed your own plan.

The maths that decides everything

A trader's result comes down to three numbers: the share of winning trades, the average win and the average loss. If the average win is twice the average loss, being right in 34% of trades is enough not to lose money. If the win equals the loss, you need more than half. That is why experienced traders don't think "will I guess right" but "how much do I get if I am right and how much do I lose if I am not". This is called expected value, and it — not the percentage of correct calls — is what sets profitable trading apart.

Why most people lose money

European regulators require brokers to disclose statistics: on CFDs, 70–80% of retail accounts are usually in the red. The reasons are almost always the same: too much risk per trade, no stop-loss, trying to win back losses, trading without a plan, and high leverage. Note that none of these reasons has to do with a person "not finding a strategy". Money is lost on risk management and emotions.

What sets those who earn apart

Fixed risk per trade — usually 0.5–1% of the deposit. A written trading plan: which setups to trade, where the entry is, where the stop is. A journal and an honest review of every week. Limits: no more than two or three trades a day and a break after two losses in a row. And time: profitable traders worked on small accounts for years before increasing their size. None of this takes talent — only discipline.

An example year of real trading

Say a trader with a $2,000 deposit risks 1% ($20) and aims for a 1:2 ratio. Over a year they make 200 trades and are right 40% of the time: 80 winners at $40 = +$3,200, 120 losers at $20 = −$2,400. The result is +$800, or +40% for the year, minus commissions. Some months will be −5% and −8%. That is a good result — and still far from "living off trading". That is exactly why the sensible path is skill and statistics first, capital later.

Realistic expectations year by year

Year one: the goal is not to earn but to learn not to lose, keep statistics and follow your plan; many finish it slightly in the red or around zero. Year two: if your statistics are stable, a modest profit appears on a small account. Year three and beyond: growing capital and possibly extra income. Those who promise "income within a month" are selling courses, not sharing experience.

How not to fall for scammers

Red flags: guaranteed income, "a steady X% a month", an offer to hand your money over to be managed, a request to transfer money to a personal card, a platform without a regulator's licence, and being unable to withdraw without paying a "tax" or "insurance". Real trading never guarantees anything, and an honest person will be the first to tell you so.

Where to start if your goal is income

Start by testing yourself without money: 50–100 trades on a virtual account under one plan. Compare the results of "by the plan" and "off-plan" trades — in Extremum the "twin" curve does exactly this: it shows what your account would look like if you followed your own rules. If you are in profit by the plan, you have a foundation. If not, you have saved real money and know what to fix.

Trading, deposits and investing compared

A bank deposit pays an interest rate known in advance and takes almost no time. Long-term investing in the broad market has historically returned more than deposits, but with drawdowns you have to be able to sit through. Trading can give more, but it demands skill, time and readiness for losing periods — and most beginners lose money at it. So it makes sense to see trading not as a way to keep your money safe but as a profession you learn over years, risking a small part of your capital.

What learning from your own mistakes costs

Almost every trader pays for their education — the only question is how much. Those who start straight away with real money usually lose their first deposit within a few weeks. Those who first build statistics on a virtual account pay only with time and come to a real account with tested rules. The most expensive mistake is topping up an account after blowing it without understanding why: the same mistake repeats with new money.

Why knowledge is not enough without psychology

Many people know the rules and still break them: they close a winning trade too early out of fear, move the stop out of hope, double the size after a loss out of anger. That is not weak character but the brain's normal reaction to risk. Three things help: small risk per trade so a mistake does not hurt; a plan written in advance so you don't decide on emotion; and a journal that shows what each violation costs.

What the numbers say about timelines

If your goal is consistent results, count on at least a year of study and practice. The first 3 months are theory and markup, the next 3–6 months are virtual statistics over 100 trades, then half a year on a small real account. Only after that can you see whether your approach has an edge. It sounds long, but it is cheaper than losing several deposits trying to cut the path short. And remember: there are no guarantees in trading — even good statistics don't promise a profit every month.

FAQ

What percentage of traders make money?

According to the CFD statistics brokers disclose, 70–80% of retail accounts are in the red. Those who earn consistently over the long run are far fewer. The odds are better for those who strictly limit risk and keep statistics.

Can you make a living from trading?

You can, but it takes both a consistent skill and capital. To get $1,000 a month with a good result of 3% a month, you need a deposit of about $33,000 — and that is without counting losing months.

How much can you make trading per month?

Experienced retail traders consider a few percent a month a good result, and not every month is profitable. In the first year a beginner is better off setting the goal "don't lose" and learning.