A lot of people who are considering Forex trading want to know how to trade Forex for a living. They have heard about people making huge sums of money simply by playing the market and envision that for themselves.
But first, we must ask the question whether it is really possible to trade Forex for a living.
Why it’s possible
The answer is definitely yes. There are people who successfully trade Forex to earn money to put food on the table. They range from people who are making ends meet, to those making a lot of money.
It’s possible because Forex is the largest and most liquid market. It is open 24/5, and anyone can get involved.
How to get started
Nonetheless, getting to a point where you are confident to earn your bread of the Forex market won’t be easy. And you definitely won’t get there immediately. You’ll have to start small, staking only money that you can afford to lose. That money is your risk capital, which you need to save before you start trading.
Initially, you’ll need to keep your job and trade Forex part-time. The beginning of your Forex career will be all about education – training yourself to analyse the market and make great trades. You could also do this by starting a demo account, and getting experience without using real money until you feel ready.
Along with the experience you get trading small amounts or using a demo account, you’ll need to do the research. If you want to make a career in Forex, you’ll need to learn everything about the market, from how it works, to how to analyse it, to developing your own trading strategies. While novice traders just getting their feet wet can afford to know only the basics, you’ll need to know the market from top to bottom.
Plan long term goals
You need to know where you’re going from the start. Even if your initial goal is to learn about the market, you’ve got to write it up and stick to it.
Choosing a broker
The right broker can make or break your career. Choose very carefully, with a broker whose strategies, technologies, and services align with your goals. Also, it’s a good idea only to get a broker regulated by the FCA.
Start with a mini account, even if you have the capital to risk. Losing big sums can damage your morale irreparably, and lead to you giving up.
Prefer organic gains to greater deposits
The best way to trade Forex is through working up from your small initial deposit, rather than using greater capital deposits. Organic gains refer to the returns you get from that initial deposit, i.e. use the money you’ve earned to continue trading.
Thousands of people trade Forex for a living, so there is no reason you can’t be one of them. As long as you make sure that you do the necessary preparation, start small, and have the correct mindset, you’ll have a good chance of making it as a full-time trader.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.