Though it is quite likely that most forex traders enter the ring as part-time players, deep inside they would like to learn more about it. Given a chance they would prefer being full-time players. However, this is easier said than done because there are quite a few things to be learned and perhaps even more things which have to be unlearned. However, those who wish to wish their bosses “good morning” each day and carry a lunch bag along with them would certainly like to become full-time forex traders. While there is money out there to made, there are many pitfalls along the way.
Over the next few lines we will try and have a look at the various points to be kept in mind and the risks involved for those who wish to find answers to the question how to trade forex full time. In fact unless one does an honest evaluation of the following few things, it is doubtful whether he or she will be able to make it big in this field.
There are many part-time forex traders who get into the market with $1,000 or $2,000. This may not be sufficient to become a full-time player in this field. If you wish to replace your current salary and on top of it make some money, then you may have to invest at least $15,000 to $20,000. If you are not able to do it, it would be prudent to continue being a part timer till you are able to save enough money to be a strong full-time forex trader.
It is important to do a realistic estimate as to how much profit you need to make each month so that you are able to stay afloat. The bigger dreams of buying a Porsche or other such luxury car can be handled once we cross the bridge. You can take the risk of quitting your job if you are alone or staying with your mom or dad. But if you are married and have mortgage payments and car-loan repayments lined up, then you have to act with caution and ensure that you act in a responsible manner. Do not take hasty decisions and regret it later.
Always think long term
You might find things going your way in the short term, but you must clearly evaluate your long-term needs and objectives before you actually decide to pull away from your job. Along the way you must learn to manage risks efficiently. Risk management is having a clear understanding the distinction between making decent money and getting by. You must find out ways and means by which you can manage reward-to-risk ratio.
Keep your strategies red hot
If you wish to be professional in your forex trading business, you must learn to be professional. You must be an accounting firm of your own and keep careful record of daily happenings and experiences in the stock market. Doing so for a period of time will help you to form some patterns and then come out with some well-thought-out strategy.
Being emotionally detached from your trading is extremely important. This is what well known service provider like CMC Markets will teach you. This perhaps has got to do a bit with managing risks. You must never act in a hurry and let your emotions get the better out of. Greed, anger, trying to be revengeful and other such traits should be avoided because of obvious reasons.
It is a long drawn-out battle
Those who have made it big in the forex market, even as full timers, have not amassed wealth overnight. It is a project, at the end of the day. Any project takes time and requires patience, perseverance and being at it constantly. You must keep chipping at the big and hard rock inch by inch and only then you will have a well-chiseled image at the end of the day. Pipelines from the water sources to the cities were not built in a day and it must have taken years for it to fructify.
Finally, you must have a buffer which will keep you going even if the chips are down. On a rough estimate, at any point in time, you should have resources to sustain you for at least one year if things do not work out the way you want.