Can you say that earnings on Forex are easy money?
Lately, dealing services have been increasingly advertising the Forex market. The exchange is being dressed up like a simple and affordable way of making money. However, you shouldn't fully trust advertising promises. The truth is that participation in trading is a full-time job. That's why many beginners who were seduced by promises and lost their deposit lost their faith in trading for good.
What should you recognize in the very beginning?
Trading is a job. To get a stable income, you have to improve your knowledge and skills all the time. You may visit various courses, workshops, find a good mentor, etc. However, you need to understand that your learning must never stop even for a day.
- Education requires financial investments. To develop and earn, first you need to spend a lot of money.
- There's no point in waiting for an income in the first months. Working on Forex is a business, which needs time to develop. A beginner may make many mistakes before he finds success and gets a stable income. You don't have to worry about taxes in the beginning since the profit from trading in the first months is usually small.
Moreover, a beginner trader has to do a little work on his feelings, learn to control each of his steps by relying on logic and not emotion. It's important to recognize that you'll have both ups and downs at the stage of the whole career and you need to perceive them as experience.
How much time trading should take?
While common exchanges are strictly time-bound, you can trade in Forex at any time convenient for you. For this reason, many beginners make the same mistake at the beginning of their careers – they fully immerse into the world of exchange trading falling out of touch with reality. You shouldn't do that! Time management plays a crucial role in trading. That's why you need to learn to properly apportion your time.
So, you may devote off-duty time to trading in the very beginning. If possible, view charts from time to time from the workplace too. However, you shouldn't go over the edge here.
You see that professional traders who work at home do not sit at a computer day and night. To this end, they learn to predict, analyze the market, work with charts.
It appears that for the first several months you'll have to take time to learn the basics of trading and work on your personal qualities. The faster you gain your experience, the faster you'll start making money. As you go on, you'll develop your trading schedule to stick to. You can sit at a computer all day long but that's counterproductive and may affect your personal life.
Do you have to quit your job for trading?
That's the most popular question. If you are a beginner who decided to devote your lifetime to trading, do not quit your main job no matter what. Firstly, most beginners often break even or even suffer losses losing their deposit. Secondly, you don't have an accurate picture of what your trader career may be in the future: it may be that you'll get your first income in a year only.
Until you get a salary at the primary work – you are protected. In no case deposit all you have. You should always have a safety cushion to get through unsuccessful months.
When you may quit the job? If you decided to quit the job for trading, you can do that when the next criteria are met:
- You've got a money holding, which makes it possible to survive challenging times.
- You've got a possibility to earn a bit on the side, for example, freelance.
- You've got relatives or close people ready to help you if you fail.
Trading is a full-fledged but extremely risky job. There is no way to tell if your strength and patience will be enough to achieve success. This is precisely why you should always have a safety net. Keep in mind that exchange trading is a job for people who can think without passion, are provident and emotionally cold. If you strive for success in trading, that's the person you need to be.
Can you get by on income from trading?
A beginner who believes that he can reach the level of a stable income in the first months is profoundly in error with his illusions. That's a great mistake, which will further result in a rude awakening.
A job in Forex may be compared to a traditional job at the office: to get a substantial wage, you have to pursue a career path. A trader has to constantly improve his or her skills and personal qualities. Indeed, trading gurus get a high income giving them a bed of roses. However, they also did work their way up to a seasoned market player.
To get a stable income, a beginner needs to work this way up:
- Learn the basics and nuances of technical analysis: study available tools, choose a proper strategy.
- Learn to feel the market, understand how world events impact the course of trading and the cost of different currency pairs.
- Start with a demo account. This approach to trading allows for avoiding serious mistakes, helps to learn the basics of trading and gives a confidence boost.
- Work on your personal qualities. Uncontrollable feelings and emotions may result in serious loss and/or loss of deposit.
- Accumulate experience. Always improve your knowledge and skills, study the strategies of experienced traders, ask them to share their experiences, visit workshops, watch video tutorials.
- Carefully design every step of yours. Do not risk the deposit unless necessary. You should always have a safety cushion.