You will find no part-time trader out there who doesn’t have a desire for becoming a full time Forex trader. Everyone trading part time right now has a dream to reach the point where he or she can leave the current day job and start trading for a living. Of course, it is a legitimate fantasy that a few traders will eventually achieve but others will probably never find such opportunity.
Factors to consider for Becoming a full time Forex trader
There certain factors that you must consider, otherwise, there will be no chance of success at becoming a full time Forex trader. We hope you will honestly evaluate the following factors to see if it is viable in your situation:
Trading account Funding Ability
Answer honestly! Right now, how much fund do you have in your Forex account? $ 500? $ 1,000? 2000? Can you add more to it? Remember, pips don’t equal much when converted into cash and not even leveraging with that amount of money is going to make you self-sufficient any time soon. Brokers don’t leverage more than what you have on hand to lose.
Look! If you still love to go on with small Forex account, don’t have confidence enough to quit your day job. You can focus on slowly building that amount up by managing your risks. You are going to find at this point in the game, if you focus too much on how much you win and lose you are never going to get out of the starting gate. Instead, focus on becoming a better trader and the money will soon follow.
Covering up your living costs
Now, answer another question- how much you need to profit monthly in order to get by? Please, be realistic with yourself on this matter! Let’s just start with getting by and worry about buying a Porsche later. If you live with mom and have no real expenses other than take-out food then maybe you can quit your job now. But if you have rent or mortgage payments to worry about along with all of the other cost of living expenses adults are responsible for, you are going to have to wait.
At first, write down your housing expenses and utilities. After that add any car payments, insurance premiums or any other type of loans that you have to make monthly. Don’t forget to mention your credit card balances. Now add it all up. Now calculate and determine whether you are making that much profit each month by trading? Oh! I think your forgot to add in food costs yet.
Plus don’t forget that when you withdraw the money from your account to pay all of those bills, you have to leave some to start trading again. And now this amount has decreased dramatically, so you are basically starting the next month off from scratch.
Do You Really Think That You Can Make It?
In the event that the financial gods are working in your favor and you can realistically pull out from your day job to focus on Forex, there are going to be a number of traits that you must adopt immediately to make it work:
Strict Risk Management Measures:
It is my strong belief that managing your risk is the difference between getting by with Forex and earning with Forex. This starts with never risking more than you can afford to lose. There is the obvious reason for this of course, but there is an underlying reason as well. When you stake too much money in one trade it will mess with your psyche and cause you to make irrational trading decisions. If you want to become a full-time trader, you need to avoid this by always managing your risk to reward ratio.
Building Strategies and keeping a Journal:
If Forex trading is to become your full time job, than you have to be professional about it. Just like an accounting firm or stock broker keeps careful notes of their transactions, you need to do the same. Take your time formulating strategies and keep track of your progress in your trading journal. This will keep you in the mindset that your Forex trading is indeed serious business.
Making Emotional Distances:
A full time trader must have a mindset that is strong enough to allow them to remain emotionally unattached to their trades. Part of this goes back to managing risk, but part is also tied into other emotions such as greed and anger. Revenge trading after a loss is one example of this that can quickly lead to accumulated losses.
Patience and Focus:
Above all else, a professional trader has to be patient. You need to know when it’s a good time to just sit back and wait out a storm, even if that means not trading for a few days until the markers line up right for you.
The Bottom Line: Becoming a full time Forex trader
As you can see form the above discussion- becoming a full time Forex trader is not easy and obviously a time worthy process! If you are going to make Forex your full time profession, you should always have a buffer in mind. This will help you to protect yourself during those times when the risk is too high for making trades. You are better off to make use of money you have set aside during these times than to risk a big loss by making a risky trade.
An analysis report has shown that out of the hundreds of thousands taking advantage of Forex trading to make money, only 5% are eventually able to make a successful full-time profession of it. If you have a strong desire for becoming part of that 5%, that means becoming a full time Forex trader, you should start now by educating yourself and working on those great trading habits you are going to need. Only when you have the skills and capital in place will it is possible to pull up a pool chair every morning and be at work.
Don’t forget that you must continue trading with a high quality forex broker with fair trading conditions in order to trade on a full time basis. So, Choosing Forex broker wisely is a vital task for every trader. So, we would like to recommend you to start trading with HYCM Broker who has friendly trading conditions for traders. Read more from HYCM Broker review.
|Chapter 11||Further reading about Forex Trading|
|Lesson 1||Full time Forex trader|
|Lesson 2||Forex Trading signals|
|Lesson 3||TRADING BINARY OPTIONS|
|Lesson 4||How to Become an Introducing Broker|