Is Full-Time Trading a Viable Career?
According to a study presented by Forbes, approximately 52.3% of Americans are unhappy with work, which explains the reason why professionals are constantly looking for a change in pace.
Every year, professionals who are tired of their 9 – 6 office hours take a leap of faith and decide that they’re going to earn a living by trading foreign currencies online
Forex trading is an attractive career path for those who are looking for a better life. One glance at the life of a successful trader on Instagram and it’s easy to see why Forex attracts people from all professions. In an article published by The Balance, it was discussed that a veteran trader with a £3,819 ($5,000) capital could earn a potential profit of £3,361 ($4,400) in a month. A veteran trader can make much more with a £15,000 ($20,000) capital.
However, unlike most desk jobs, trading for a living is one of the toughest careers on Earth. Trading Forex requires specific sets of skills, as well as a risk tolerance (the ability to stay calm despite huge losses in a trading day) that not all people possess.
To start with, you need to know how to take advantage of the volatile markets but keep risk management as your core principle. Volatility in the markets (the fluctuating prices of currency) is where the day traders of Forex make money. The price of currency can change very quickly and traders have to evaluate the risk of investing more money or selling. For example, if the price difference of the USD/EURO rose from $0.84 to $0.86, the trader would have to decide to buy more USD or sell them for a profit of $0.2 for each Euro. This is what it means to take advantage of the currency’s volatility. It may look like small-scale earnings but imagine if you traded £763 ($1,000) on the price of £0.66 ($0.86) for each Euro. That’s a £15.28 ($20) profit in just two minutes.
In order to become a good trader, you’ll need to spend a serious amount of time educating yourself. This means learning how to read charts, and studying the trading decisions of veterans who are much more knowledgeable than yourself. You can do this by looking at MetaTrader 4 programs that are being used by tech-savvy individuals. According to FXCM’s MetaTrader 4 software page, the program has an analytics feature that allows users to glance over interactive charts as well as technical analysis indicators. It also has a copy trading feature, which allows people to copy the trading strategies of other individuals. With this program, traders will be able to learn the ropes of trading while gaining good experience with the help of other traders. MetaTrader 4 is easy to use, and Investopedia has a step-by-step instruction guide which you can follow.
In a graph presented by the Business Insider, it showed that approximately $5 trillion is being traded every day on the Forex market. This means that there is plenty of money to make for every investor who’s willing to make a living out of trading. Is Forex trading a viable career path? The answer depends on whether you have the mental fortitude to train yourself on how to read graphs and historical data, as well as the discipline to keep your trading within your allotted capital. Without a great amount of knowledge and discipline, you will never be able to trade Forex properly. If you do learn to successfully navigate Forex trading then this is a career path that could be very profitable.