Many aspiring traders want to know if it is possible to make Forex trading your primary source of income. Experts say, yes, it is. However, there is a catch: you have to consistently make the right moves. This means that you should probably hold off writing your resignation letter until you are satisfied that you have acquired the necessary skills in Forex trading.
In addition, you need to have made the right trading moves consistently and made money to be sure that you can keep the trend up. Many traders are yet to develop the necessary skills, the right trading attitude, discipline and patience to succeed in the money market in the long term.
Does this make it impossible?
No, it doesn’t. It means that you have to develop the necessary skills, trade consistently -maybe have more gains than losses -then take the leap. This is, of course, all theory. However, there are people who are making money consistently trading the currency market. That means it is possible for anyone who is willing to put in the work. Learn more from here https://sec.rakuten.com.au/.
What it Takes to Trade Forex Fulltime
- How much money should you have to make Forex trading your fulltime gig?
First of all, you must have substantial capital to start you off. If you do not have enough money, then you might have to wait a while before you can hand in your resignation note. Just to clarify, capital in this instance means disposable income which is not a uniform amount for everyone. Why this is important is because you need an amount of capital large enough to trade a large enough position to support yourself while not risking your Forex account on any one trade.
The best thing to do is to start trading while you are still in employment for that extra cash. This way, you can build up your capital as you gain the necessary knowledge, skills and attitude towards achieving your dream. You will then be sure whether you can make the move to be s fulltime trader or not.
Note that even with a huge capital base, you still need to learn the ropes. Therefore, start small and build it up. The focus should be on being a good trader as opposed to how much money you are trading. Once you acquire the skills and people realize that you are good, they will be blowing up your phone with requests to trade for them.
- Trade the Daily Charts
This is the best way to have get anywhere close to earning your bread from Forex trading. Trading the daily charts is the most important skill you can learn before you move on to other skills.
With the daily charts, you get the most balanced combination of accuracy and frequency of the price action set ups in Forex trading. The weekly and monthly charts also provide a great view of the market’s trends, but it is the daily charts that will give you multiple setups which are the best for short term to mid-term Forex trader.
Trading full-time gives you the time and experience to ensure that everything is running as it should in your trading endeavors before you risking anymore of your money.
- Consistence is key
Before you take the plunge, you must be making gains consistently by making the right choices almost always. Here are a few things you should do:
- Find out and learn the most effective trading strategies, for instance, price action.
- Come up with a workable trading Forex plan and work around it. Adjust it as often as you need to perfect it.
- Design a trading journal and update it often in order to have a track record. This helps to not only keep you accountable but also maintain your discipline.
- Trade with money that you can afford to lose.
- Avoid over-trading.
Finally, learn as much as you can from expert traders. They also started from somewhere and have a lot to teach you from their errors and successes as they perfected their trade.