Forex trading is usually described as a part-time job or a “hobby”. It’s true that a majority of forex traders is doing this part-time, while they’re keeping their steady, full-time jobs. This turned out to be a great way of generating extra income for many. However, all these part-time traders probably dream of quitting their 8-hour jobs so they can start earning money while working when they want and from anywhere in the world.
This is a dream that can come true, but you need to have in mind that it will be a hard road to get there. Persistence, a high level of knowledge, and experience are the first steps toward the goal, but they are not enough. Like in any other small business, 95 percent of traders will lose and many of those will give up on trading eventually. Here are some tips that will help you to fulfill your dream and start making real money through forex trade, full-time.
1. What skills do you need?
Before you even start thinking about trading forex full-time, you’ll need to obtain the necessary knowledge and skills. There are lots of websites that are sharing their knowledge with people and provide forex training guides. Even beginners need to learn the essential terminology and most simple trading strategies. If you want to do this professionally - you’ll need to put much more effort into gaining skills and experience. You’ll need to create your own trading style by mastering several strategies and knowing when to apply them. Some personality traits will certainly help in this venture as well: rationality, cautiousness, and analytical mind.
2. What’s your current capital?
One of the best things about forex is that you don’t need much capital in order to start trading ($1000 is enough to open a small account). How much money do you currently have in your forex account and what sum can you add to it? Think carefully before you give up your steady job - have in mind that pips bring less when converted into cash. Wait until you raise enough capital for further trades, focus on slowly building it and becoming a better trader - and the money will come eventually. Don’t go into debt just to start trading big time. Be patient and slowly build your capital up without taking too many risks.
3. Profits - what is enough?
Top traders will tell you that there’s no limit on the amount of money you can earn but know that this won’t be an easy task. Regardless of whether you want to trade forex as a hobby, or do it for a living, don’t expect to earn much at the beginning. However, when the money starts coming, you’ll need to calculate how much you need to earn on a monthly basis in order to quit your daily job without worries. Rent, utility bills, groceries, credit card balance, mortgage, holiday and other planned and unexpected expenses have to be on your list. Your profit should cover all those expenses and then, you can start thinking about quitting your job.
4. Managing risks
It’s said that new traders are mainly focused on how much money they can earn. On the other hand, experienced traders focus on how much money they can lose. They invest more time and energy in calculating risks and preventing great financial losses. This is why professional traders are called “professional” – managing risks is what makes the difference between a part-time and a full-time trader who can earn their living this way. They will always carefully manage their risk and reward ratio, and never risk more than they can lose.
5. How to motivate yourself?
The greatest motivators for becoming a full-time forex trader are freedom and money. You won’t find many people who don’t find the idea of flexible work hours appealing. Let’s add the fact that these working “hours” might be an hour or two in some cases. You might have a look at these traders who made it, read their stories, and learn from them. Most of them have used their knowledge to become trainers and share what they do with other (future) professional traders. Read about the most effective trading strategies they use and try to implement them in your trading plan.
□ How to Have a Forex Trading as a Full-Time Job
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