Aspiring Forex traders often wonder if it is possible to make a living from trading the Forex market. In short, the answer to this question is yes – but you have to do a lot of things right consistently. Because of this, making a career out of trading is not possible for a lot of traders who lack the patience, trading skills, discipline and realistic attitude to trade in a smart way. However, this doesn’t mean that it is impossible for traders to make a living – you simply have to learn what needs to be done to become a consistently profitable trader, and apply what you have learned to your trades.
How much initial capital do you need?
When starting out as a Forex trader, the first thing that you will need is enough starting capital. If you are underfunded, you won’t be making any money from trading Forex anytime soon. The exact amount of disposable money which you will need to start trading Forex full-time will depend on your situation and is usually different for everyone. But generally speaking you will need a decent amount of cash available so that you can trade enough to make money to support yourself whilst also not running the risk of losing too much money on one trade.
Learn to trade the daily charts
Before anything else, you should learn to trade the daily charts to set yourself up as best you can to trade Forex full-time. Mastering the daily charts is essential to your success as a career trader and is recommended by the vast majority of professional Forex traders who have been trading for a long time. The daily charts will provide you with the most up to date combination of frequency and accuracy of trading setups for price action, meaning that you’ll get a more accurate, relevant and consistent view of the market’s price action on the daily charts than you would on a weekly or monthly time frame.
Learn to trade from a professional trader
Learning the skills of Forex trading from an experienced and professional trader can help you achieve your goals faster. Just like any other skill or profession in life, having a skilled mentor is arguably the most efficient and effective way of building your own trading skills and getting the right start when trading Forex. You will need to learn and master an effective Forex trading strategy, and design a tangible, working Forex trading plan around it which you should try to improve and tweak each day as your experience grows. These are both skills that a professional and experienced trader will easily be able to help you to achieve. You should also learn how to record your trades in a Forex trading journal and create a track record which is important to help you to maintain your discipline and keep yourself accountable.
Would you like to be able to give up your day job and trade Forex for a living?