By Cedric Welsch
If you invest on the Forex market to earn a steady stream of income it is important to invest in a quality Forex trading income calculator to monitor your investment. Many investors set income goals each year in hopes of not only meeting these goals, but exceeding them. If you set annual income goals you must be practical. Most investors with experience in the Forex market will base their goal on the current condition of the market. Know how to set your monthly and annual goals and why an income calculator is beneficial and step up your investment portfolio.
The primary purpose of the calculator is to calculate how many PIPS you must make on a daily basis to achieve the amount you set as your annual goal. Most advanced calculators will factor in casual losses and a quality calculator should not assume you will make the same amount of PIPs on a daily basis. Allowing some wiggle room in the calculations is extremely important.
The basic calculation tool will ask your annual goal amount and will simply calculate the number of PIPs you need per day. More advanced calculators will ask how many weeks you trade on average per year, how many days per week you dedicate to trading, dollars per pip, and lots per trade. With the advanced features of a calculation tool you can come to a more accurate calculation based on your own trading schedule and trading portfolio. Failing to tailor the calculations to your portfolio could cause you to miss your goal by thousands even if you are averaging the pip per day figure.
There are several different calculators available on the Internet. Some of these computer tools are available for free download while others will charge you for use. Be aware that free calculators can be developed and distributed by anyone who knows how to computer program. If you choose to use a free tool be sure to do your research to ensure accuracy. There should be a number of reviews are pretty much every calculator on the Internet. Figure out the general consensus of the tool and see if it is accurate and reliable.
Forex trading can be a wonderful opportunity to earn extra income. If you have been trading full-time or part-time and you are ready to set goals sit down and review your trading trends. Set a realistic goal and access a Forex trading income calculator to help you achieve your goal.
About the Author
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