When watching video streaming sites or social media, it may seem like professional traders win every single trade. But is it really possible for FX beginners to operate in the same way?
This time, to address this question, we will explain whether “it is possible to earn money with overseas FX without failing.” For those who want to minimize mistakes as much as possible, please also refer to the “ways to prevent major failures” introduced in this article.
Is it possible to earn money with overseas FX without failing?
Let’s get straight to the conclusion. By understanding the answer here, you will be able to proceed with your future trades more advantageously. Additionally, your perspective on failure might change. In some cases, it may be beneficial to slightly adjust your way of thinking, so keep that in mind as well.
It is impossible to earn without failure
To get straight to the point, it is impossible to earn money with overseas FX without experiencing failure. In the world of overseas FX, those who have made profits exceeding 100 million yen are called “millionaire traders,” but even they say it is impossible to avoid failure. If someone claims to teach you a way to earn money in FX without failing, it is highly likely to be a scam. Be careful not to fall into such traps.
Adopt the mindset of “earning without major failures”
If you are going to engage in overseas FX, adopt the mindset of “earning without major failures.” This is something even active millionaire traders emphasize. As long as you avoid major failures, you can keep trying again and again. Instead of thinking about “how not to fail,” focus on “how to minimize failures.”
What to do to prevent major failures
While it is impossible to completely prevent failure in overseas FX, there are ways to minimize the extent of failure. For example, “not trying to make money in a short period” or “not attempting to recover losses in one go.” By learning these methods, you can avoid being forced out of the FX market due to significant losses. Now, let’s go into the details of “what to do to prevent major failures.”
Do not aim to make money in a short period
The first point is to “not aim to make money in a short period.” Generally, speed and risk are proportional, meaning the faster you try to earn, the higher the risk becomes. Moreover, making money in a short period is extremely difficult.
For instance, earning 1 million yen in one month versus earning 1 million yen in one year—don’t you think the latter is easier? If you’re going to achieve the same amount, it’s better to take the option with lower risk. If you want stable income, focus on earning over the long term.
Do not try to recover losses in one go
The second point is to “not try to recover losses in one go.” This mindset is particularly common among overseas FX beginners, so be cautious. This overlaps with the concept of “not trying to make money in a short period.”
Attempting to recover losses in one go is essentially the same as trying to make a large amount of money in a single trade. As mentioned earlier, speed and risk are proportional. The more you try to recover losses in one trade, the greater the damage when you fail. In fact, there are traders who, in an attempt to recover losses quickly, ended up incurring additional losses of tens of millions of yen.
Do not bet large amounts from the start
The third point is to “not bet large amounts from the start.” While it’s true that betting large amounts can lead to higher returns, it also comes with the risk of incurring significant losses.
People who end up in debt or lose all their assets in overseas FX often follow this approach. Start with a small amount. Even 10,000 yen is enough. Begin with small amounts, and as you gain experience, gradually increase your investment funds.
Do not use high leverage from the start
The fourth point is to “not use high leverage from the start.” Leverage allows you to trade with more money than you actually have by using your investment funds as collateral. For example, if you have 100,000 yen in investment funds and apply 100x leverage, you can trade as if you have 10 million yen.
Leverage is an excellent system for earning large profits with small funds, but it has one drawback. Leverage applies not only to your investment funds but also to your profits and losses. For instance, if you make a profit of 20,000 yen, applying 100x leverage would turn it into a profit of 2 million yen. However, you also face the potential for a loss of 2 million yen.
As such, misuse of leverage can lead to extremely dangerous situations. Beginners in overseas FX should set their leverage to 3x or less until they become accustomed to trading.
Do not trade with minor currencies
The fifth point is to “not trade with minor currencies.” In overseas FX, there are two types of currencies: major currencies and minor currencies. Major currencies, such as USD/JPY or EUR/USD, are highly liquid and have relatively stable price movements.
Minor currencies, such as GBP/JPY or TRY/JPY, are less liquid and have highly volatile price movements. Minor currencies are difficult to predict and are therefore more suited for advanced traders. Beginners in overseas FX should start with major currencies.
Do not trade during economic indicator announcements
The sixth point is to “not trade during economic indicator announcements.” Economic indicators are economic news released periodically by various countries. During such announcements, the market fluctuates significantly. The charts can swing wildly, making trading during this time highly risky. In fact, there are traders who incurred losses of several million yen by trading during economic indicator announcements.
Do not rely on guaranteed strategies or tools
The seventh point is to “not rely on guaranteed strategies or tools.” Generally, guaranteed strategies or tools won’t make you consistently profitable. This is because the market is not simple enough to allow such methods to work indefinitely. Naturally, once such strategies or tools become widely known, there will be people who exploit them. While they may provide temporary profits, they often stop being effective quickly, so be cautious.
Make sure you can trade based on your own knowledge and experience. In fact, all millionaire traders earn their profits through “discretionary trading.”
Do not blindly trust professional traders or experts
The eighth point is to “not blindly trust professional traders or experts.” While it’s fine to use their opinions as references, always make the final decision yourself. Otherwise, you won’t improve.
Those who trade based solely on the opinions of professional traders or experts will stop being profitable the moment those individuals are no longer available. Additionally, there’s no guarantee that professional traders or experts are always correct. Generally, “the easier it seems, the higher the likelihood of losing,” so be cautious.
Do not trade when you are not in a stable state
The ninth point is to “not trade when you are not in a stable state.” To succeed in overseas FX, in addition to financial management skills and strategies, you need the ability to make calm decisions. Essentially, the moment you lose the ability to make calm decisions, you are likely to lose.
In fact, there are traders who, driven by emotions, incurred losses of tens of millions of yen. If you’re feeling irritated or down, take a break from overseas FX.
Do not trade when you cannot read the market
Beginners in overseas FX tend to trade frequently, but choosing not to trade when you cannot read the market is also an effective strategy. By doing so, you can avoid unnecessary entries. Most millionaire traders adhere to this principle strictly. This is because they know that entering only in high-probability situations allows them to win efficiently.
Ideal initial capital for starting overseas FX
There is no set amount of capital required to start overseas FX. However, this lack of clarity might leave some people uncertain. Starting overseas FX while feeling unsure about whether your capital is appropriate is not ideal for your mental state. To address this issue, we will explain the “ideal starting capital for overseas FX.”
The ideal starting capital is 1 million yen
To get straight to the point, the ideal starting capital is 1 million yen. This is because, with 1 million yen, you can aim for relatively low-risk and substantial profits. While it’s possible to start overseas FX with less than 1 million yen, you will need to take on slightly more risk.
Simulating how much profit you can earn with 1 million yen
Let’s simulate how much profit you could earn with 1 million yen in starting capital. This simulation focuses on “earning with low risk.” The conditions for the simulation are as follows:
Number of traded currencies: 50,000 units (5% of investment capital)
Target profit: 20–30 pips/day
Win rate: 50%
Under these conditions, you can earn 5,000–7,500 yen in profit daily. If you continue this for a month (22 trading days), you will earn 110,000–165,000 yen in profit. On an annual basis, this amounts to 1.32–1.98 million yen.
Even with relatively low risk, this simulation shows that you can achieve a decent income. If you gain more experience and are willing to take on slightly more risk, your potential profits could increase further.
Points to note when starting overseas FX with 1 million yen
When starting overseas FX with 1 million yen, the key point to remember is “don’t get overconfident.” With 1 million yen in capital, you can earn profits more efficiently than you might expect. Some people may even feel that it’s “easy.”
However, most people become overconfident at this stage, neglect risk management, and end up incurring significant losses. Even if you start earning profits successfully, avoid getting carried away and maintain strict risk management.
(Bonus) Why people with less than 1 million yen should also start overseas FX
While 1 million yen is the ideal starting capital, we also recommend overseas FX to those who cannot prepare 1 million yen. This is because starting with a small amount has its own advantages. The main benefit is that even if you fail, your losses won’t be significant.
Even if you get overconfident and make mistakes, the losses won’t be devastating. Additionally, starting with a small amount allows you to gain plenty of experience with low risk.
Advice for those starting overseas FX
For those about to start overseas FX, keeping the following points in mind can increase your chances of success:
Always set stop-loss rules.
Regularly review your trades.
Gradually increase your knowledge, even if it’s just a little at a time.
In particular, gradually increasing your knowledge is the most important aspect. Just like studying for a test, if you study daily, you will achieve better results than others. Even if the difference doesn’t show immediately, after six months to a year, the gap will be significant. Millionaire traders also acquire new knowledge every day. Even if it’s just five minutes a day, make a habit of studying consistently.
Summary
This article explained whether it’s possible to win in overseas FX without failing. In general, it’s impossible to win in overseas FX without experiencing failure. This is because the market moves unpredictably.
It’s impossible to perfectly predict an unpredictable market. Therefore, rather than aiming to invest without failure, it’s important to focus on investing in a way that avoids major failures.