The idea of trading for a living is appealing to lots of people. You get to set your own schedule and work from home, you get to be your own boss, and you have the opportunity to earn a decent sized income if you know what you are doing. Not only that, you also don’t need a university education to get started. But should you start up a forex trading business? Keep reading to find out more.
To give you an idea about what you can expect when working as a trader, here are a few facts:
- Independent traders can earn a decent income if they know what they are doing and know when to cut their losses. Whilst it’s always advisable to start out small, you do need to have money to make money. The more money you have available, the more you are likely to make.
- No matter how good you are at trading currencies, you will encounter losses during your career.
- Automated trading systems can improve your win-rate, but you need to remember they won’t win all the time.
- Whilst it’s not possible to completely eliminate risk, researching the markets can help you to increase your chance of success.
You Need a Trading Plan
Whilst we don’t want to put you off trading by saying that 90% of day traders fail within their first year, it’s important to note that the main reason for this is because they went into trading without having a plan. Companies like Synergy FX have seen huge gains in the business, but if you were to ask them why they would explain that they had a plan that they followed precisely.
Related: The Many Benefits of Online Trading
Although websites and advertisements on TV will have you believe that trading is easy, it isn’t. Just because you can open up a trading account within minutes, you need to know how to utilise it. This means you need to perform regular research into the trading markets, learn from the experts, and have the discipline required to avoid any trade that you are unsure about.
Whilst research and evaluation are vital components of a forex trading business, a successful forex trader also exhibits a few key personality traits. Before you give up your current job, ask yourself the following questions:
- Are your expectations realistic?
- How do you deal with stress?
- Can you afford to lose the money you are risking?
- Does your family support you?
- Can you stick to your trading plan?
- Do you have any experience? Or are you willing to put the time in to learn?
- Can you handle losing?
- Do you have a driven personality?
If you have positive answers to the above, you have a good chance of being successful at forex. Remember though, you need to have realistic expectations, you need to be willing to learn and keep on learning, and you need to be ready for your first loss. Treat trading as a business, rather than a get rich quick scheme, and you may just be able to have a successful career.