Make a Living Trading the Forex MarketFebruary 25, 2020
Many would-be traders believe that trading can only be a part-time activity. Consequently, they fail to even give it a try. The truth, you can actually make a living trading Forex. However, there are a number of things you have to do right consistently.
In order to succeed in the Forex market, you need to learn the essential trading skills. Also, you must be disciplined, realistic and most importantly, patient. Some people approach trading with a rather unrealistic attitude where they expect to earn millions almost immediately.
The question then arises; how much money does an aspiring trader need to make a living trading Forex?
The first thing is to ensure that you have enough starting capital. The amount of disposable money varies from one individual to the other. The idea is to have enough money to trade a sizeable sum so that you can make enough to support yourself. You do not want to risk it all on one trade.
Without enough funds, you will not be able to trade forex for a living. You need a large enough amount of money in order to manage your risk on every trade efficiently. If you do not have a substantial amount of money to trade, keep your day job for a while.
You can start your journey by trading part-time for extra income. You can make regular income every month and this can add up with time. While making your plans to trade full-time, you can learn and gain confidence and also build your starting capital gradually. Learn to think rationally like elite investors at Saxo. Stop thinking about big deposit rather concentrate on quality trade execution.
Some of the experienced UK traders you see today started small. They gradually built up their capital and when they had gained enough confidence, they source for capital from others. Eventually, they were able to build up even more capital and now trade independently.
The trick is in paying attention to the lessons and experience that will turn you into a good trader. Then you will be able to make money and interested investors will give you theirs to trade for them.
The Daily Charts
The best place to begin your trading adventure is the daily charts. Many experienced traders not only trade off these charts but also advise new traders to do the same. The first step towards trading Forex for a living is to grasp how the daily charts work.
The daily charts contain a great blend of frequency and accuracy. In other words, they give you an explicit and accurate view of the market’s price action. While you can also check the weekly and monthly charts out, they may not be as practical for your purposes.
What you want are adequate trade-worthy setups every month in order to make regular returns. At the same time, you will be able to eliminate trade signals that are not very reliable. Therefore, focus on the daily charts.
In order to risk their money, traders ensure that everything is as flawless as possible. In fact, they approach trading with the mentality of a sniper who weighs his odds before pulling the trigger. Your focus should be on trading higher timeframes to reduce chances of making trading mistakes.
Things You Must Do Right
As earlier suggested, there are a number of things you must do right consistently. These include the following:
- Create and master an efficient trading strategy.
- Devise a concrete trading system that works around your strategy and update it as you grow.
- Create a trading journal for recording your trades to keep you accountable and on track.
- For every trade you make, come up with a risk amount that will not ruin you if you lose it.
- Avoid over-trading. This is the number one reason why most traders fail.
With enough funds, a mastery of the daily charts, consistency and discipline, you should be trading full-time soon. Follow your trading plan strictly and record your trades to stay on track. Also, remember that all these must be done right every time.