Are you ready to be a full-time trader?
While the prospect of making money on the forex market full-time seems like a very enticing career for many, it is not for everyone. It takes a specific kind of individual with certain must-have traits in order to succeed in this battlefield.
Of course this is not to discourage those who are looking to pursue trading as a full-time career, as some believe that these traits can be developed. For instance, the Turtle Traders came from various backgrounds and were trained under a specialized forex trading method, eventually achieving success in the field. In fact, many believe that successful traders are made, not born.
Since 90% of people lose
It is not an easy feat though, as statistics reveal that nearly 90% of traders wind up failing. For the fortunate 10%, the road to forex trading success probably hasn’t been all too easy, as it requires a lot of patience, fortitude and discipline to make it.
For one, having enough capital is a huge consideration, as it would take a reasonable trading balance to be able to generate returns enough to sustain a living if you’re trading full-time. Bear in mind that there will be losing days and there will be instances when the markets barely move, so the profit potential is not always guaranteed.
Another thing to consider if you’re thinking of trading full-time is whether or not you are able to generate consistent returns in your part-time forex trading stint. If you have the track record to show that you can be able to stay profitable in the long-run, then you have a better shot at making it full-time.
Aside from that, you have to keep in mind that the pressure to make money in full-time trading is considerably stronger. If you’ve had trouble adjusting to the pressure and staying focused when transitioning from demo to live trading, then you might not be mentally strong enough to withstand the shift from part-time to full-time trading.
You decide because you can lose
As mentioned earlier, this is not to discourage those looking to trade full-time but rather to disclose the risks involved. If you feel that you are not emotionally or mentally ready yet, you can always take your time to develop your skills or to train your mind in order to be in a better position to trade full-time. As always, the importance of keeping a trade journal comes in, as this will allow you to keep track of your progress and pinpoint areas which you can improve on.
It might help to think of full-time trading as a business, wherein you evaluate the strengths, weaknesses, opportunities, and threats. Once these have been determined, you can better align your skills in order to come up with a good strategy to stay profitable. You need to be aware of the risks involved so that you can prepare for these beforehand and limit your exposure.
Above all, it is important to be honest with your self-assessment before making the transition from part-time to full-time trading. There’s no use fooling yourself or being in denial about the skills you haven’t mastered, as these can lead to costly mistakes. Instead, examine your motivations for going full-time in forex trading and make sure you set reasonable expectations for yourself.