Forex trading is fascinating and offers traders a lot of opportunities. And most important, this is you can quit your 9-5 job once you are profitable trading Forex.
Therefore the question, can you make living trading forex? The answer is YES. You can make living trading forex if you Have a profitable strategy, Follow a strict money management plan. And when you trade forex using proper technical and fundamental analysis before trading. Making a living from forex requires practice and dedication to achieve the points mentioned, but it is absolutely possible.
Forex trading offers traders a lot of opportunities to make a profit.
The important thing you need to do before jumping into forex trading is to know what you are aiming to achieve at the end of it.
In this article, you will see how possible it is to make living trading forex.
Below Are the Main Reasons Why You Can Make A Living Trading Forex
1. Almost No Cost to Invest in Forex.
Despite requiring little capital for entry, the forex market offers low transaction costs.
Typically direct transaction cost is around 0.1% under normal conditions.
And when making larger transactions, the spread could be typically as low as 0.07%. Usually, this depends on leverage.
Is this cost not reasonable?
It is. The transaction cost in this market is pretty reasonable compared to other markets.
2. Forex Trading is a 24 Hours Market.
The rolling hours of the market are what make trading forex an excellent opportunity for you.
Forex trading is not subject to the opening and closing hours. There is no waiting for the opening bell.
Even if you want to trade on a part-time basis, you can choose when you want to trade – let it be in the morning, evening, at night, or even when taking lunch.
The business operates 24/5 in a week; the market is always functioning no matter what the situation is.
This is among the best markets you can make money by working on your schedule.
Also, in forex trade, you enjoy the flexibility of the market. There are no regulations of when to trade or when not to trade.
Therefore a trader is in the position of making extra earnings even when their current job cannot pay enough to satisfy their needs.
3. Take Advantage of Leverage
The availability of leverage is the most exciting thing in the forex market since it allows you to open a high position with a small amount of capital.
With leverage, you can make a higher profit.
For instance, a forex broker might decide to give 50 to 1 leverage, which means that a trader can buy or sell $2,500 worth of money from a $50 margin deposit and so on.
The forex trade market provides maximum leverage compared to all financial markets in the world.
This facility is an added advantage to leverage your trading investment.
Therefore, in the forex market, the traders end up gaining a significant amount of money.
4. Enjoy the Liquidity of the Market
You can sell trades as you like any time since there will be someone willing to buy on the other end.
FYI. The forex market has the highest number of traders compared to other financial markets.
The global scare of the market, plus high volume as well as 24 hours activity, makes the forex market a highly liquid market.
You can also set your automatic online trading platform to close your position when you achieve your desired profit or close a trade when a trade is going against you.
5. Ensure you don’t lose Money – Set a Take Profit and Stop Loss
You can use a protecting stop loss method.
This approach is useful to protect your profits or more losses by considering a stop-loss command or a limit order.
This is the best way of ensuring that losses do not go beyond a certain limit.
Also, you can use it to set a determined loss amount for each day. With this, all positions would be closed, and no other trade will be started until the subsequent trading session begins.
This is very important since it protects your profit and limits losses.
So, setting the stop loss or take profit will offer you peace of mind of not losing more than what is set as a limit.
In this case, a stop-loss would not be achieved at the determined level but will be triggered in the next period when the prices reach that level.
This is an excellent opportunity to monitor your profit.
How Much is Required to Start Trading For You to Make a Living?
You can start forex trading as a part-time business and use the profit as an additional income because this requires smaller initial capital.
By starting as a part-time business, helps you to understand the market and build confidence.
Once you understand the market, you can invest a larger amount of money.
Before you decide the amount of money to invest, first know how much you can risk. So, choose how much money you can afford to put in while building your trading strategy.
You can start with as little as $50, but if you can afford to invest more is okay because you have more benefits from many activities in the market.
A reasonable capital will let you avoid risking a lot of money on one trade. Therefore the risk is spread, which can consequently lead to large amounts of earnings.
However, the amount of money you put in trading will significantly affect your ability to make a living.
How Much Money Can You Make Trading Forex?
The exact amount you will make depends on what happens in the market. You cannot predict the market with certainty.
Let’s look at this example; at the major forex pair for the first 10 months of a particular year; the market was extremely flat.
During this period, it would be hard to make a profit. But later at the end of the year, there was a big downwards trend, which gave traders a chance to make a lot of easy money.
So the market is not easy to predict.
Therefore, you can take a sensible approach in deciding what you reasonably aim before you start trading live.
You can calculate an expected income in terms of probability. For example, in 15% of months you expect to make 5% profit, 30% of months you expect to make 12% profit, and so on.
Also, the knowledge and experience a trader has will critically help in making a profit. Still, there is no way to tell precisely how the market will move to be able to calculate the exact profit.
Remember that focusing on making a 50% profit per month is unlikely and might put you out of business very early.
Ensure you make a reasonable target and work towards it.
The Secret of Becoming a Professional Forex Trader and Make a Living from it.
If you want to become a good trader and make a living from it, you must be ready to commit your time and money.
You must be ready to spend time and energy and build a winning attitude with a realistic mindset,
Develop your patience and discipline, acquire trading skills and knowledge that will allow you to be making a profit consistently.
The slightest mistake or a challenge should not make you give up or even make undisciplined trade which can frequently make you lose more.
Also, ensure you do not trade with emotions, as they can affect you negatively.
Another thing that can help you in becoming a professional trader is by keeping on learning and practicing the best and accurate technical and fundamental analysis techniques until you become a consistently profitable trader.
Whether you are trading part-time or full-time, your main goal should be mainly becoming a successful trader and making a living from it.
It is possible to make a living through forex trading only if you use the right techniques. This is the only thing that makes you a good trader. By having your strategy, you can make money consistently and become rich.
So the answer to the question of whether you can make living trading forex is YES.