The forex (currency exchange) market is very accessible thanks to its low entry barriers and high leverage (borrowed capital) available. This makes it popular with novice traders investing small deposits for modest profits, as well as more experienced traders.

Successful forex trading is hard and it doesn't happen overnight. However, for those who are willing to put in the time and effort, and take the necessary calculated risks, it is possible to get rich trading forex.

How some merchants make a living?

A professional forex trader is generally considered to be someone whose primary income is derived from trading in the foreign exchange market. They may be self-employed, investing their own capital, or they may work for hedge funds or international banks, trading clients' money.

Those who work for an employer receive a salary that can range from around £45,000 to over £150,000.

The average income of someone trading on their own behalf is more difficult to quantify because the forex market is highly decentralized and trading budgets vary widely.

Different forex traders will have different definitions of success, so you need to understand what you want to achieve with your trades and set realistic goals.

Case Study 1: George Soros

George Soros was born in Budapest in 1930 and survived the Nazi occupation of Hungary before immigrating to the United Kingdom in 1947, where he attended the London School of Economics. He began his career working for commercial banks in the UK and US and then started his own hedge fund, Double Eagle, in 1969.

At the time, Britain was part of the Exchange Rate Mechanism (ERM), which was created to create more stable monetary policy across Europe and make exchange rates less variable.

Case Study 2: Bill Lipschutz

Bill Lipschutz began his business career in the late 1970s while he was still attending Cornell University in upstate New York. He made over $200,000 in that time, but lost it all on a bad trade, learning a hard but valuable lesson in risk management.

He joined investment bank Salomon Brothers in 1982. Foreign exchange markets were just taking off and Salomon Brothers had formed a new foreign exchange division which Lipschutz was asked to join.

He was instantly successful, and by 1984 he had become the company's leading foreign exchange trader. The following year, he was reportedly earning $300 million a year for Salomon Brothers.

Case Study 3: Stanley Druckenmiller

Stanley Druckenmiller joined Pittsburgh National Bank as a management trainee in 1977 and rose rapidly to become the head of the bank's equity research group.

In 1981 he created his own company, Duquesne Capital Management. He then went on to work for George Soros for many years, taking on the role of Senior Portfolio Manager for Soros's Quantum Fund and working with Soros on his famous British pound short sale in 1992.

He was featured in the best-selling book, The New Market Wizards, by Jack D Schwager, and survived the economic crash of 2008.

However, he subsequently closed Duquesne Capital Management, announcing that the constant pressure to live up to his own success had taken a "high emotional toll". The net worth of him has been valued at more than $4 billion.

Only a few will make billions trading forex. However, as we have seen the above, some traders have been successful.

Even professional traders will lose money, but if you can start making profits on a regular basis, then you are well on your way to becoming a professional trader.

It pays to start by learning from the achievements of others and implementing your own carefully researched trading strategies and risk management systems.

WikiJob does not provide tax, investment, or financial advice or services. The information is presented without regard to the investment objectives, risk tolerance or the financial circumstances of any specific investor and may not be suitable for all investors.