Forex Trading: A Balancing Act

Filed under: Learn Forex Trading |

For the average person out there, starting out trading forex can be something of a balancing act. Unless you are very lucky and are in a situation where you do not have to hold down a 9-5 job to pay the bills, then you will have to make a few concessions. To begin with, you will need some capital to start trading with (although before trading with real money, you should of course develop your trading methodology on a demo account!). A good amount to trade with would be 10,000 GBP. This would give you the chance of making some meaningful money in the markets. However, if you are doing it more as a hobby, then you could even start out with as little as 2000 GBP or perhaps even less.

 

Now, if you are working during the day, then you will obviously have to conduct your trading activities at night. This happens to work out just fine as the forex markets are 24-hour and the New York close happens at around 11pm UK time (and 10pm when the clocks go back an hour). Therefore, you could conceivably just look at your charts once per day at the New York close. This is when new daily candles are formed and the old ones close. This is a good time to assess the daily charts and make some trading decisions.

 

If you trade in this way and you are successful, then perhaps after two or three years, if you have grown your bank sufficiently and perhaps saved even more money to put in your trading bank, you could start to take your trading more seriously. Of course, it is very difficult to give up your day job to start trading, especially if you have a family to support. It is simply too much of a risk. However, if you can save enough money to live off of for a year or two, and have adequate funding in your trading bank in addition to this, then why not give it a go if things are going well and you are confident in your trading abilities? There is great potential for success in the forex markets – but you should remember that such success will not come overnight.

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