How viable is it to live off the Forex?
Being here is synonymous with one thing, are you thinking about becoming a trader or making a living from trading? You’re probably saying that, but isn’t this the same thing? Well, no; living from Forex can be done directly or indirectly.
In simpler words, it is possible to both invest in the market and sell trading ideas or knowledge, which would involve living from Forex, without becoming a trader. In either case, undertaking the industry is not a decision you should take lightly, because although it is a growing financial market, it involves risks that deserve caution.
The purpose of this issue is to clarify the situation for you, offering you timely and interesting information that will allow you to evaluate the pros and cons of investing in this market, thus determining whether or not it is truly possible to make a living from currency trading.
Perhaps it is because of the simple fact that the market works 24 hours a day, 5 days a week, perhaps because of how easy it is to trade by offering ease and flexibility like few others, or simply because of how small your commissions are, as well as the spreads of the main pairs.
Regardless of the reason, Forex is the ideal place for the small trader to have the opportunity to hone his trading skills, before deciding to take him on as an exclusive means of multiplying his income, or making a living
Forex, a viable option to make a living, myth or reality?
All this sounds like heavenly music in the ears of those who are looking for a way to make money; however, making a living from Forex is something else, in fact, it is a market that tends to devour many small investors before they reach the minimum return.
In fact, it is a market that tends to devour many small investors before they reach the minimum level of profitability. In particular, Forex has what it takes to make money, but from there to being able to live on it – or on trading in general – there is a fairly large ceiling; so far, the traders who manage to make a living from it, are usually those who also sell something, or what is the same, offer additional services that allow them to multiply the profits.
Is it a good idea to leave a stable job to live off the Forex?
Among the reasons that motivate those who want to make Forex their way of life, without a doubt, is to leave jobs that are not attractive, in which they feel trapped or to which they simply don’t see a future. Does this sound familiar?
Faced with such a scenario, trading comes as a balm that promises freedom, as it breaks geographical barriers and the need to be tied to schedules; an internet connection and an online broker will be enough to trade from anywhere in the world.
An attractive decision that deserves a lot of analysis…
As wonderful as it sounds to get rid of the chains of an office job or one that does not arouse passion, while working from a paradise beach or under the sun in a swimming pool, making the decision to leave something safe by entering the trading industry is something that demands a lot of retraining.
What does it take to live on Forex?
Those who have made Forex their only means of earning money agree that there are two aspects to the practice:
1. Regularity in profitability:
It is obvious that those who seek to make Forex trading their way of life must have the necessary knowledge to operate, however, this is no longer enough, succeeding in the goal demands to be continuously profitable, after all, the bills do not come sometimes.
What does the above-mentioned imply? Simple, that the amount of profitability is sufficient to cover all needs and, if possible, leave flexibility for savings; a factor that is intimately linked to the second.
2. Having the right trading account:
Those who have been in the world of Forex trading for some time, speak of 20% annual profitability as an approximate margin, this implies the need for a monthly profitability that demands a 100,000 ? account if you want to make 2,000 ? a month, although these are approximate figures, since operations in this market are quite leveraged.
Living off the Forex, another job?
Making Forex the only source of income implies a reality, assuming the fact of continuing to be an employee with the difference of having to deal with the problems that comes with being autonomous What? depend on yourself and your effort to achieve profitability.
But that’s not all, also face possible contradictory scenarios such as complicated situations, illness and lack of access to the Internet, without removing the fact that this is a fairly fluctuating market, full of ups and downs.
The idea is not to discourage you in the idea of making Forex your livelihood, but to understand the pros and cons, as there will be many obstacles you can find along the way, if not, no trader would be looking for alternatives to supplement their income from trading.
Options to live from Forex trading:
As mentioned in Forex, not everything is limited to trading, so if you want to live from the foreign exchange market, pay attention to the following options:
1. Become a hedge fund manager or offer investment fund management services:
Today, only a few hedge funds have earned the distinction of successfully trading Forex; on closer examination, statistics show that out of 1,000 of them, the vast majority invest in stocks or indices rather than Forex or mutual funds.
2. Specializing in algorithmic trading:
Individual traders are in favor of the possibility of being part of a gigantic market, which is algorithmic trading, which is undoubtedly a direct consequence of the immense community that makes up the Metatrader 4.
Daring to look for opportunities as a programmer in this market, – either developing own systems or by order – and the option to apply the knowledge in additional assets of great demand – for example, cryptomonkets – represent additional ways to generate profitability.