On the face of it trading for a living is easier said than done. However, it is entirely doable with the right approach and mindset. The stories that we keep hearing every now and then about forex millionaires are not hearsay but very relatable and about real-life traders. Of course, currency trading is not a get-rich-quick scheme, is fraught with risks and requires patience, discipline & tenacity. The forex market is the largest financial market worldwide offering maximum liquidity to investors. So, if you do the required legwork and research eventually you can switch to fulltime trading by leaving your day job and may even be able to sustain your livelihood through it. The journey won't be a smooth one, there will be bumps and setbacks, false starts and disappointments galore. But you must have what it takes or in other words possess an indomitable never-say-die spirit. Becoming a millionaire overnight is rare or maintaining a consistent winning streak requires extraordinary discipline. However, the proof of the pudding is in the eating.
Following the below-mentioned steps will take you a step closer to taking up trading as a full-time profession.
Demo Trade to build your confidence:
Most brokerages provide users with a free demo account where you can trade in virtual money. You can execute endless number of trades, learn through trial and error and perfect your trades in a simulated environment. Unless you have gained sufficient confidence and set up a consecutive number of winning trades you must not venture into live trading.
Build a winning strategy:
There is no set formula for success in forex trading. You have to try out several methods and figure out what works best for you. Also, no one can control the markets. But through charts and indicators, news updates and trading signals you are much better equipped to take on the markets. Also, you can always back-test your strategies on a demo account. Back-testing simulates the effectiveness of a strategy using historical data.
Always be ready to learn and educate yourself:
The currency markets are always in a flux and however experienced or knowledgeable one maybe there is always something more to be learned. Any enterprising trader must always be open to knowing about newer aspects on trading, learning from their mistakes, staying constantly updated for enhancing their knowhow and staying relevant. Refer to www.alfafinancials.com for an in-depth understanding of the currency markets. Nowadays, you can easily trade at your fingertips through the mobile apps of your trading application. Also, applications like MT4 allow you copy trading and even automated trades.
Slow and steady wins the race:
At the outset, it's always better to have a stable source of income so that if things go wrong you are not left completely broke. If you have a long track record of winning trades and have substantial savings only then can you slowly transition into earning your bread and butter through trading. Do not overtrade & wipe out your account and learn to curb your emotions when trades turn against your favour. After all it takes money to earn money. Trading with leverage is highly appealing but if your strategy backfires then your losses will also be magnified.
So, can Forex be traded for a living? Definitely committing your hard-earned savings to the markets where you are liable to lose the entire amount requires a calm demeanour, the ability to remain unfazed even in the face of reverses and the capacity to withstand constant stress and anxiety. Trading for profit is always easier than trading for a living. Stop following the Joneses and while you are at it work towards your goal of trading for a living at your own unique momentum with bravura and without quitting midway.