How to become a full-time trader is one of the most interesting topics in Forex. In fact, many people are interested in this problem. After all, most of those who come to trading see themselves in a comfortable chair, with several monitors and recordings. People want to work for themselves and allow themselves to rest at any time of the year, and not when the turn comes, or the cherished month comes. The article discusses several of the most important points that are needed in order to become a full-time trader.
Be realistic and honest with yourself
The first thing to do on the road to professionalism is to learn to be honest with yourself and make realistic plans. This applies primarily to the size of the trading account. Here it is important to learn how to roughly calculate how much you can earn per month.
Let’s say you have $2,000 on your account. On average, monthly income is 5-10% of this amount. Accordingly, you will not be able to become a full-time trader yet, since this income is clearly not enough to cover all expenses, at least.
It is also important to understand here that the amount that you can risk in each specific transaction depends on the size of your trading account. You cannot, for example, trade the entire volume because such risks are unacceptable.
Accordingly, you can try to guess when, with such an amount on the account, you will be able to earn enough to provide for yourself and your family, at least the basic needs. Until that time, all earnings on Forex will be just a side job. Moreover, it is mandatory to reinvest so that the total amount on the deposit slowly grows.
At the initial stage, you should not think about how to get rich soon or fear that you will make less money.
Create a quality strategy
Basically, you can choose some existing strategy and work with it. For example, the strategy can be based on any candlestick analysis setup, even the simplest one. On the other hand, Forex scalping strategy, another popular one in trading, can be both profitable and disadvantageous depending on the type of trader and how he or she uses it.
In fact, each system has its own signals and instruments. Not every trader, for example, can work well with indicators. Candlestick analysis may not be suitable for someone.
Also, in the process of work, it is important to decide whether trading will be carried out with the trend or against it. In principle, if trading is carried out according to candlestick analysis, you can combine it here since the work is carried out according to the situation.
Create and follow your own trading plan
The next step is to create a trading plan. Having a strategy is good, but a trading plan is still necessary. Without a trading strategy, you will hardly be able to become a full-time trader. It acts as a guide to the strategy and everything that a trader does in the financial market. A trading plan helps a trader to focus on important aspects and remain disciplined in any situation.
Emotions play a huge role in trading. Most traders lose money precisely because they trade emotionally and listen to their intuition. Meanwhile, creating a plan allows you to overcome the main obstacles that hinder learning and also improves your concentration.
In order to start Forex trading at first, you need to get familiar with the trading platform. One of the viral ways to do this is to make a demo account. It is needed not only to get acquainted with the platform but also to work out the strategy.
In this case, the only thing to know is that working with the demo for too long is not advised. To put it simply, a practice account is not the same as a real one. And it does not lie in the fact that, as many traders think, quotes on real and demo are different.
Indeed, they may differ slightly due to the difference in servers and the speed of information processing. The problem is that emotionally, demo and real are significantly different. On the demo, you risk nothing. You just open trades and don’t worry about losing money. And when it comes to real trading, you open trades, and you can lose. This is where the essential difference lies. And the result may depend on it.
Most importantly, the difference between beginners and full-time traders is that beginners and pros think very differently. After a succession of successful transactions, newcomers tend to overestimate their ability. Loss of a job, on the other hand, may result in depression. Despite the notion that the outcome of a trade is determined by chance, experts treat all transactions the same. It is also important to note that a single transaction does not solve any difficulties.
Once a trader understands and accepts this, he is no longer a beginner. He moves to the professional league, where it is important what the result will be in a month, a year, and not at the end of a particular deal.