Forex trading for a living, can you escape the 9-5?

Trading for a living, the dream we all want! 

The majority of traders, whether retail or institutional, approach the markets as a hobby. They dabble in the market on the side with their savings account and any other disposable income they may have. These traders may make a few trades a month or a few trades a year.

When you embrace trading as your career, it is no longer a hobby. It is your job and your livelihood. Trading for a living requires that you become more than just an avid trader. You must operate as if every trade has the potential to be your last profitable trade. 

This mindset shift will require some significant adjustments in your life. It will put immense pressure on you to perform and be successful. However, if you can accept the challenge of such responsibility, there is no greater feeling than seeing your hard work pay off with massive profits over time. 

The idea of working from home in your pajamas sounds appealing to so many people, but can it be done? What are the steps to take to trade for a living? Here are tips that will help you escape the 9 – 5 grind: 

Find out if you have the right personality for trading 

Prop Trader Trading for a living Personality

If you’re dreaming of a life on your terms, trading can be an enjoyable way to make a good living. It also offers the chance to work from anywhere in the world and with minimal capital requirements. 

To decide whether trading is suitable for you, answer these questions: 

  • Are you disciplined and patient? Trading is a business, and like any business, it requires time and energy to succeed. To capture the most profit, you’ll need discipline and patience to stick to your entry and exit points. 
  • Are you an entrepreneur? Just like in any other business, you’re going to have to take on some responsibility for managing your trading account. This means that when things go wrong, you’ll need to figure out what went wrong and how to fix it. 
  • Are you willing to lose money? If you’re starting in this business, there’s no way around it — you will lose money. The best traders lose money less often than everyone else, but they still lose money sometimes. Can you accept that? 
  • Can you handle stress? Being a trader is not all about making money. Sometimes there are losses involved. If losing money stresses you out too much, then this might not be the right career for you. 

Pick your favorite trading style, short term or long term 

Prop Trader Trading for a living Trading Style

There are two basic styles of trading: short-term and long-term. Both have their merits, and there’s a place for both in a complete trading strategy. 

For the short-term trader, price fluctuations are a part of life. You profit from a quick entry and exit from the market. This can be from a few seconds to a few days. If your risk is defined, you have a high probability of success over many trades. 

The long-term trader is more concerned with fundamental analysis or technical indicators that point to price trends lasting longer than just a few hours or days. These trends can last for weeks, months, or even years. The longer the time frame for your trading, the less you have to think about risk management, but it also means that your trades take longer to mature, and you need more capital. 

Your choice should be based on your personality and availability to monitor positions; if this is not possible, you need to use shorter time frames to take advantage of smaller moves in the markets. 

Get the right education 

Prop Trader Trading for a living right education

Trading for a living is possible. You do not need to graduate from an Ivy League school or work for a Fortune 500 company. The power of the internet has made it possible for people to make money online. The key is to find something you like doing. 

Getting an education is the first step in making money trading the markets, but not all education is created equal. Today, many online courses are promising their students millions of dollars, but they don’t deliver on their promises. However, there are articles that contain vital information, at no cost, just click here!

To make money trading for a living, you need to be honest with yourself about your abilities and the time frame it will take you to succeed. You may or may not become a millionaire overnight, but if you’re willing to put in the hard work and learn the skills required, then there is nothing stopping you from making a good living from trading. 

Set realistic expectations & goals 

Prop Trader Trading for a living expectations and gaols

When starting as a trader, you should expect to lose money at first. That’s right; it’s normal and expected to take your lumps as you experiment with different methods and markets. This is particularly true as a new trader, as you’re learning how to read charts, place orders, manage risk, and so on. It is not uncommon for newer traders to lose money in their first six months of trading! 

However, there are some things you can do to minimize this risk. The first is trading on demo/paper money. Paper trading allows you to experiment without risking any of your hard-earned funds. It also allows you to get comfortable with your trading strategies before adding more money at risk. 

When it comes time to start trading real money, treat the account like an “experiment.” You are testing out this method or strategy on “real” money. If it doesn’t work out for whatever reason, no sweat! Just try something else until you find something that works. 

Taking the Leap 

Prop Trader Trading for a living leap

The biggest mistake new traders make is they don’t take the time to learn the basics. They don’t understand that trading is a business, not gambling. 

There are too many sad stories of people who lost their life savings because they didn’t know the essential rules of money management and risk control. 

But there are also thousands of success stories about people who took control of their financial future by learning how to trade for a living. The only way to become a profitable trader is through practice. There will be plenty of opportunities out there for you to test your skills while improving your mental toughness. Don’t let fear stop you from taking that first step into the world of trading. 

As we all know, fortunes can be made and lost in the market, but trading as a profession is a highly viable option. 95% of retail traders lose money trading for the first time. It would be best if you were willing to put in the time and effort to learn how the markets operate and apply that knowledge consistently.