Many people who are interested in trading Forex like to think they can quit their jobs and then trade Forex.
Trading Forex is very easy and traders can make a large amount of money in very short time. Open an account with a reputed broker like Saxo, place your trades and wait for the market to see when to close your trades to achieve a profit.
It sounds like the happy ending to a movie. The only problem is, it’s not a movie and Forex has random winners. Even with the most successful strategy, in this industry you will always lose some trades in the market, this is particularly normal for new traders.
Every trader has their day in Forex, but you need to develop a risk management strategy to make sure your money isn’t at the mercy of the market, when placing trades.
Your job is your saviour
Trading in Forex is very hard and you will only make it harder when you do not have a job or leave your job for Forex trading, therefore your job is your saviour when it comes to the Forex market. If you lose your money, blow your account, or you don’t know how to trade the market, it acts as your back up plan.
If you think the brokers are going to guide you so that this does not happen with your managed account, you will be disappointed. Brokers also have their own accounts to trade in Forex therefore they have no time to help others.
The best and safest way of trading in Forex is along with a job. It is your lifeboat in this financial sector. This market is very large and traders can easily lose themselves in the Forex market.
You need to know how to trade like the professional traders in the United Kingdom and the best way is to start trading with demo accounts. A large number of traders do not do this and end up loosing money.
If you trade along with a job in Forex, you can still keep trading in this sector even if you lose your money. Professionals who trade this market have years of experience and you are unfortunately no match for them.
Your job can then help enable you to make your trading consistent and allow you to invest more money when you have fully grasped the market. Plus if you ever lost your capital, you can start again if you also have a job.
Learn from mistakes
Trading should be considered as your alternative source of income for the first two years even if you’re consistently making a profit.
Those who are involved in options trading are mostly part time traders and consider trading as an extra source of income. The market is extremely volatile and no one can predict the market price movement with 100 % accuracy.
So unless you have financial backup to support your family for at least 6 months you should never trade the market as a full-time trader. Even the professional traders have other sources of income since they know that they will have some losing months in every year.
Summary: When traders consider trading as an alternative source of income they are under far less pressure to make money. This more stress-free option is extremely important for your self-development as a trader. If you trade the market under pressure then you can never really understand the nature of this market. Therefore, consider trading as your alternative source of income for at least the first two years.