One of the more popular topics in the BabyPips.com forums is the possibility of making a living from trading. Believe it or not, there ARE traders who are making enough moolah from trading alone.
But not everyone can hack that kind of lifestyle.
Like any other business, forex trading has its pitfalls that could eat up the hard-earned money of newbies who have jumped into it without enough knowledge and preparation.
If you’re determined to make full-time trading work for you, then here are four simple steps you can take:
- Ask yourself if you’re ready for full-time trading
Consider the logistics of trading full time. Do you have enough capital? Imagine months of not getting salary and not making profits while STILL having to pay for your food, rent, utilities, and Netflix and Amazon Prime subscriptions.
Can’t live without your job yet? Can’t afford to take big drawdowns for weeks and still maintain your lifestyle? Don’t do it.
Have you spent enough time trading live? Before you take the plunge, make sure that you’ve found brokers that you can trust and trading strategies (yes, that’s plural) that have yielded you profits across all types of trading conditions.Of course, it goes without saying that you should have experienced being CONSISTENTLY PROFITABLE before trading full time.Shifting to full-time trading also requires conviction. Do you REALLY want to be a forex trader? You shouldn’t just trade because you know that if you don’t, you won’t have a day job to go back to.Are you prepared to weather months of not making money? How about doing forex-related research all day every day? If you think that you’re only in it for the profits and lifestyle-friendly hours, then you shouldn’t take the leap just yet.