If you begin trading foreign exchange in the UK, you must be sure that the volume you trade at can sustain your livelihood. The same holds true for any other freelance endeavour. You must make sure that your business (and income) are sufficient to support you full-time.
Are you considering making a career change to become a full-time Forex trader, but are unsure of whether it would be a wise decision or even be feasible?
Many people have quit their “day jobs” to dive headfirst into the Forex market, and you would astonish to learn that many of them have not only replaced their prior full-time income, but have multiplied it (sometimes dramatically). That being said…Can you work full-time in forex?
For many traders worldwide, forex trading is a full-time profession and may be. Since they do not earn enough money from trading to support this, the vast majority of forex traders do not trade as their primary source of income. However, if you are talented enough, it is extremely feasible to trade forex full-time.
Can You Work Full-Time in Forex?
It’s crucial to note right away that while trading forex can be a full-time profession for anyone, this does not imply that it will always be a successful full-time employment.
Many investors in the forex market will spend the entire morning tonight studying charts, analysing various reports, and keeping an eye on the movement of currency pairs across the market – yet they will still end up losing enormous sums of money.
To see what a day in the life of a full-time forex trader actually looks like, I’d suggest watching Michael Bamber’s video here.
Although that strategy is undoubtedly a full-time job (and then some), argued that most people don’t mean it in that sense when they ask if trading forex can be a full-time career.
What are the Benefits of Working a Full-Time Job Versus Trading Forex Full-Time?
Flexibility Unlike Anything Else
Leaving your limiting workplace hours behind is a requirement for becoming a full-time FX trader. The foreign exchange market is open every day of the year, 365 days a year. You are free to create your own trading schedule and not constrained by concerns such as how long it will take you to get to work or whether you need to finish up at the office for a few more hours. A flexible schedule can better fit your life than an office job ever could. The flexibility that forex trading provides could be particularly helpful if you have children or other family obligations.
Simple to Begin
Once you made up your decision to do it, getting started with forex is pretty simple due to the low entrance requirements. Of course, all you need to trade is an Internet connection and a laptop, smartphone, or tablet, in addition to the hours you must invest in study and education.
No Centralised Control
No management or a boss to answer to! The only person you should answer to regarding your finances is yourself because you are the master of them.
As a global over-the-counter market, forex lacks any centralised oversight, central exchange, monitoring, or reporting.
Markets that decentralised and unregulated eliminate the element of surprise, so you can’t just show up at work one day and learn that your employer is firing you or going bankrupt.
Additionally, because the currency market depends on external variables and perceived economic trends, there are no insiders in it.
The minimal costs should also be taken into account as a benefit of a full-time career in FX trading. In a strict technical sense, there are no commissions. Spreads between currency pairs are how forex brokers generate money.
The cost of paying brokerage fees is not a concern.
When deciding where to draw the line, a trader should take into account the brokerage fees associated with other markets, such as stock or securities trading, which have different structures.
Although it may not be a benefit compared to your regular employment, this is unquestionably a benefit of forex trading to consider.
Elasticity of Liquidity
Compared to other financial markets, the FX market has the most active participants. There are benefits to having the most liquid market in the world.
The forex market has very few instances of price manipulation, anomalies, and deviations, which promotes more effective pricing. With the exception of significant national events, you can see consistent price patterns developing throughout nonstop trade.
Although we cannot directly compare the favourable nature of the forex market to your regular employment, it is something to keep in mind when making the decision to become a full-time forex trader.
Technologies and Trading Techniques of All Kinds at Your Disposal
We would assume that you initially had an interest in the financial industry and currency trading if you decided to become a full-time trader. As you are aware, there are numerous tools, tactics, approaches, and strategies that can help you expand your financial horizons and your trading horizons. If you work for a firm, you might never have this flexibility to explore on your own.
Following stringent laws and regulations might get tiresome, but if you decide to make trading your full-time job, you can study as many tactics as you like and employ automated signals, software, tools, trade copiers, and other methods to boost your trading account’s earnings.
Additionally, you have the option to create a trading style and technique that is unique to you and consistent with your personality, objectives, and ambitions. A trader, whether seasoned or just starting out, has a huge selection of tools and fundamental analysis theories to choose from in addition to the hundreds of technical indicators available for forex.
Making the most of technology, abilities, and strategies to further your objectives is perfectly acceptable. If you continue working your 9–5 office job, you could not have this freedom.
Getting a Job Trading Forex Full-Time
There are a few things to think about if you’re determined to pursue your dream of working as a full-time Forex trader and want to quit your job right away.
There is no room for error when you are trading Forex full-time because it is a high-pressure career that eventually becomes your only source of income.
Before you get into this type of investing, and especially before you consider quitting your day job and working as a full-time Forex trader, you should be aware of these fundamentals:
Take Care of Your Forex Trading Like a Business
You’ll need to shift your perspective from merely having a little fun to running a business full-time.
Although you don’t have any merchandise to sell or property to manage, psychologically speaking, the situation is precisely the same.
You must do every effort to protect your funds and keep the business’s doors open because your trading account is your entire operation.
Make a company plan to follow, in our case a trading strategy with guidelines and risk management ideas.
Never allow emotions to influence your company decisions; instead, discipline yourself to work full-time hours to carry out your business plan.
Make Sure You Have Enough Money
People who make the switch to full-time Forex trading frequently fail because they don’t realise how much capital they really need to succeed.
There isn’t a magic quantity that turns someone into a full-time Forex trader, but you must keep your trading capital distinct from the cash you’ll spend to support your lifestyle.
Your trading cash should be kept intact and used to generate income; only then should you permit yourself to withdraw.
You’re not ready to be a full-time Forex trader if you don’t have enough money to withstand drawdowns or cover your expenses while you’re losing money in the markets.
Ensure your readiness to the utmost or you won’t succeed.
Demonstrate your trading approach under all market conditions.
In the foreign exchange markets, there are no repeating days.
Markets may be constrained to a narrow range one day and then move in a single direction with the might of a freight train the next.
Therefore, your trading technique must be effective in all market conditions, and if it isn’t, you must have a backup plan that is.
Before trading full-time, make sure you have forward-tested your trading technique by trading on a live account in addition to back-testing it.
Trading any strategy on a live account is different from trading it in a demo account!
Not to mention how drastically different trading psychology is when actual money is at stake and you still have bills to pay.
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