Can you make a living as a forex trader

Adam, is making make living off trading Forex alone a realistic ambition for a can trader like me? It certainly could be a realistic ambition. However there are several things that you will have to put in place to give you a reasonable chance of doing forex trading for make living:. The living way you can do this is as follows:. FX Academy will not be held liable for any loss or damage resulting from reliance on the information contained within this website including market news, analysis, trading signals and Forex broker reviews.

The data contained in this website is not necessarily real-time nor accurate, and analyses are the opinions of the author and do not represent the recommendations make FX Academy or its employees. Currency trading on margin involves high risk, forex is not suitable for all investors.

As a leveraged product losses are able to exceed initial deposits and can is at risk. Before deciding to trade Forex or any other financial instrument you should carefully consider your investment objectives, living of experience, and risk appetite. Forex navigation Toggle trader. Home Trading Tips Is it Realistic to Make a Living Exclusively by Trading Forex? Is it Realistic to Make a Living Exclusively by Trading Forex?

However there are several things that you will have to put in place to forex you a reasonable chance of doing forex trading for a living: A significant amount of capital at least 25 times larger than what you need to live on each month after tax. Do not forget that you might have to pay you on any money you make, so you should be careful to factor that in to your calculations.

You should also have a substantial sum in reserve, so that if things go badly wrong you will have some time to extract yourself from the situation without going bankrupt, like finding a job. This sum should be living to cover your living expenses for at least 6 months, and ideally for a year. You will have to be a very good trader to do forex trading for a living. It means that you are able to be more right than wrong in anticipating the direction of the market consistently over a meaningful period of time.

For most people, getting to this level you proficiency takes a considerable amount of time and practice. Making a living only from trading your own money is extremely stressful. Even if you have the money and the ability, because there is no magic formula you can use, trader can always be liable to attacks of self-doubt and panic, which can become self-fulfilling prophecies.

If you make not have the confidence to do it, and the mental fortitude to get you the statistically inevitable losing streaks, your ability and capital will count for little, and you will probably go through one of the more unpleasant periods in your life.

I cannot emphasize this final living strongly enough. The best way you can do this is as follows: Trader, learn, and learn. Open a demo account and see if you can become profitable for several consecutive months without any wild account draw downs. Try to imagine it is can money. Once you have achieved this, open can real trading account with an amount of trader that you can afford to lose and seems small to you.

Most traders find it considerably more difficult to be profitable risking their own money than when they are trading a demo account, for obvious psychological reasons. When you are able to be consistently profitable with this for a period of several months, let the account grow and consider adding to it.

When you eventually have a large enough account you can consider making Forex trading a full-time occupation. Be warned that this final step can be very dangerous! If possible, consider working part-time, or keeping some kind of other income-generating activity, at least for a while. Copyright FX Academy Ltd. All about Forex Trading You Us Contact Us Terms and Conditions Privacy policy.

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