Trading forex for a living is definitely not something that anyone can do. Can you make a living off forex markets? It is hard to say — perhaps you can, perhaps not. Still, it is better to find out how much can you make trading forex and where could you rank among the more successful forex traders before you decide this is something you want to do for a living.
In order to trade forex for a living, first you need to learn how to earn money from forex. Trading forex for a living is not something that people should get into lightly.
Most traders blow through their first account without achieving anything. The same goes for the second. Then they get wiser and quit — or go broke, and then finally quit.
Quitters have no business trading forex for a living. The best forex traders often suffer losses as well, but they are patient, persistent and most importantly, they learn from their mistakes. This is what you need to do as well, in order to make it in this business. So, can you make money with forex? Not right away, and this is something we really need to stress out from the very beginning. A lot of brokers sugarcoat the reality and make it seem like you can make millions overnight, becoming the next Warren Buffet or George Soros.
And while nobody in their right mind would believe such a thing, people still wonder if this approach could make their lives better. Because most people believe it is possible for them to make a decent living without working too hard, and this is a common misconception. Some people have a knack for these things; others are simply good enough.
On the other hand, most end up losing a lot more than they gain. And yet, trading forex for a living is no mere pipe dream for anyone, even you. There is more money in it that it easily trumps any other financial market in the world. Forex is where the real money is at, and there is more than enough to go around.
The only problem is the way it is distributed. Not to go Marxist on you or anything, but forex started out as a playground for the rich — a place where people like J. Morgan and Rockefeller would go to exchange currencies. If a bank, or a government or some other major player needed to exchange cash at bargain rates, this is where they would do it. This still happens today. The only difference is that now, even ordinary people have access to this market and could get in on the game.
This is something that was impossible for us just a few decades ago. Trading forex for a living is possible. It absolutely can be done. These guys have attained something of a celebrity status over the year.
Regardless of how you might feel about his political and social ideas, his influence and business savvy cannot be overstated. He started as an ordinary employee in a financial firm and 15 years later he had amassed enough means to start a company of his own. Of course, back in the day not everyone could make it to the forex markets, but this is exactly what he did. He became famous in by accomplishing something that was unthinkable at the time. A man who came from nothing single-handedly performed a coup de grace on the British pound; it had to be withdrawn for failing to sustain the trading band, as nobody was willing to touch it with a ten-foot pole.
They still call it the Black Wednesday. Not bad for an ordinary guy. Then again, not all traders were as successful. Statistically, even the best forex traders in the world lose every now and then, but then their track record that they built up trading forex for a living is sullied irreparably. Just look at Bill Lipschutz. Successful forex traders can amass incredible power and influence. They can break entire countries, if they feel like it. By combining his capital with a There is a lesson to be learned here.
For a no BS assessment of what it would it take for you to trade forex for a living, let us look at all investments you would need to make. We will ignore the quest for the right broker, education and whatnot, focusing solely on the hard facts.
So, assuming you got everything else covered, is your success guaranteed? The short answer is — hell, no! There is still a lot that need to be said and done before you can even consider trading forex for a living.
I am not even going to dignify them with a comment. In order for your hard work to pay off, first you need to work hard in the first place! Even then, making a consistent profit that will sustain both your running costs and your costs of living. Think about your family as well. But how much money is enough to secure these costs? Well, assuming you are doing everything right, or at least reasonably well, it would take some serious capital to get you started.
While it is possible to earn this kind of money in a single week, it would have to be a really, really good week for you. There is no way someone can pull this off on a regular basis. In our humble opinion, people like to exaggerate and brag about a lot of things. Not in a Western country. If you do not have that kind of money and no hope of raising it anytime soon , consider this — most people start off small and end up having to try several times before the pieces fall into place and they start making a steady income.
Of course, this is assuming there are no major losing streaks and they do everything right. If you apply all that knowledge and trading strategies, you will still lose every now and then.
If you trade small, you earn small, and you end up losing small. If you plan to trade forex for a living, you are going to need some serious investments. Our advice would be to keep on to your day job at least for a while, until you figure out how good you are at this whole forex thing. Most importantly, you need the right kind of mentality. Trading forex for a living takes a lot of meticulous preparation, if you wish to be successful.
The worst thing you can do is start a career in forex unprepared. Our three examples can serve as a way to demonstrate some key points that determine the right kind of mentality. After all, how can you make predictions on U. How can you trade New Zealand dollars and ignore their agricultural sector? Here are some suggestions on where to start. Do you think Soros has magically acquired his forex skills? That he is talented beyond imagination? No, he is just meticulous, unscrupulous and patient.
It took him 15 years to get the resources and the know-how to open his own firm, and then another 20 years or so to make his bones, if you will. During this time, there were ups and downs, but he never gave up. In order to start trading forex for a living, you are going to need some strong determination as well as a clear vision of what you are trying to accomplish.
Next, you need to prepare yourself for some losses. What is important is to learn how to manage risks and not be discouraged. Lipschutz lost his entire fund but still turned out as one of the best forex traders in history. The golden rule is to keep the rewards greater than risks on every trade you make.
No point to target 40 pips of profit if the risk is 50 pips or more. If possible, try to keep it to 4: Also, limit your exposure as much as possible. Some traders seek to take a shortcut and choose brokers that allow them to copy trades from more successful traders. You effectively give up control over your finances to a complete stranger and hope he does everything right. Can you sleep tight knowing all this? Even the best traders end up losing money.
He has a backup plan. If you are going to rely on other traders to make the calls on your behalf, you need to take a few things into account. First of all, this does not qualify as trading forex for a living. You need to set your parameters right and learn to trade as soon as possible. What this trader does is essentially getting some free leverage on the side. And he is not responsible for any losses he incurs on your behalf. You might as well make your own fortune in life.
When trading forex for a living, all sorts of things can and will go wrong.More...