How To Trade Forex For A Living
Every independent forex trader wants to make money from forex trading, that much is for certain.
However, it is surprisingly difficult to get an honest answer from industry professionals on exactly how you can go about making a living from forex trading.
Having unrealistic goals that are really just a fantasy is a massive issue in the forex industry.
You will never be able to achieve any of the goals and find yourself feeling defeated and stop trading. But if you have realistic goals and expectations you can actually achieve, confidence and success can create momentum in your trading which will push you forward towards profitability!
So let’s do away with the fantasy, the bull, and the lies. Let’s see what the real requirements of trading forex for a living are so that you can put yourself on a path to success.
Want to know how to trade forex for a living?
What are the actual risks you will face?
What do you need to do to prepare?
How can you generate multiple streams of income?
Read on to get the answers to all of these questions and more!
Fantasy Vs. Reality
It can be really difficult to separate fantasy from reality when it comes to forex trading. A lot of influencers and supposed forex “mentors” will show you Cars, Lamborghini’s and a chart saying how they have made millions in a month and how you can do just the same.
The reality, however, is not this. Maybe this person is an outlier and found huge success with their trading.
But the majority of traders will start with lower capital and have a much different journey.
You can’t skip to the end where you are making hundreds of thousands of dollars unless you have the capital to do so. The more money you have in trading, the more you make.
The Three Paths in Forex
In forex trading there are three broad paths you can choose from when it comes to what you want your trading career to be:
Make stupid money.
Make a good living.
Grow your wealth.
These options are all open to you but they impact your life in very different ways.
If you want to make stupid money from trading then you are going to need to put a crazy amount of time and effort into it. You can work for prop firms or managed funds – either way, if you want to make stupid money you will have to put in the effort.
What you put in is what you get out. This would be a high-stress lifestyle where you would dedicate a huge chunk of time toward your work.
That works for a lot of people though because the reward is a big salary.
Option number two is the route I have taken where you make a good living, can pay your bills, and be your own boss. You make a living out of forex but not to the financial heights of working for a managed fund.
If you want to make big money, trading with your own capital is not going to get you that big pay day unless you already have a lot of capital.
The last option is a more relaxed approach to trading that still earns you money. You would approach trading as if it were an index fund or an investment.
Building up your wealth with steady progression and no need to make it big. This is a low stress approach that you will typically see older traders take on or traders that have another job.
You would invest your money into your trading account and trade it on the side, growing your wealth.
Each of these paths are viable choices when you look to start trading. Each path will suit different people’s needs and part of your forex journey is figuring out what trading career you want!
Preparing to Trade for a Living
Have An Emergency Fund
Create Additional Income Streams
Don’t Invest All Your Capital On One Trading Account (I Discuss This In-depth On My Program - Diversification)
Invest In A Qualified Forex Mentor
You are self-employed if you are trading forex for a living so you need to protect yourself.
Your first step is to create an emergency fund.
This is an amount of money that you can fall back on in case you get injured, ill, or times generally become hard.
Without an emergency fund you have no floor beneath you to land on in case of an emergency.
Now when it comes to your trading capital you need to be smart. Do not put all the trading capital you have on one trading account. Diversify your trading accounts based on risk level.
The most important part of making forex a living is finding a source for multiple streams of income.
I am the most qualified to discuss this route of trading out of all the other paths because it is what I have done.
I learnt trading and turned it into my career. However, what I learnt early on is that you cannot rely on one single source of income.
You need to diversify your income and that is why i have turned a skill i have learnt into a business, in turn it also allows you to empower people around the world.
It is also important to invest in a qualified forex mentor, you need like minded people that will keep you engaged and build you as a trader.
The thing with forex trading is that the more capital you have to trade with, the more money you make. So the key to making a living out of forex is building your capital up.
If you are solely relying on your trading to do this, it could take you a while. Having that extra income from a different source will help accelerate your forex earnings.
Obviously your trading skills need to be good enough for you to make profits, but once you are confident in your trading you can focus on building up your capital.
Once you have built up your forex account, you can earn a very healthy amount each year without putting your capital in as much risk!
Happy Trading
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Risk disclaimer: The information presented on our blog are for educational and entertainment purposes only. Nothing on this website serves as investment advice or recommendations. Trading is risky and you can lose more than your initial investment. MyFxMentor cannot be held responsible for any decisions visitors make. Please consult a financial advisor before making any investment decisions. Risk disclaimer.
