How to Make a Living by Trading Forex

Filed under: Learn Forex Trading |

Perhaps the most common reason why people start looking into trading forex is because they want to escape their day job and be independent and financially free. However, it is not an easy task so I would like to talk you through a possible way that you could do it.

 

To begin with, you need capital – and if you want it to be more than just a hobby, you need a fairly substantial amount to start with. I would say that 10,000 GBP is a reasonable, bottom line figure if you want to make it a full time occupation in a reasonable amount of time. However, while you are saving that start-up capital (just as you would for starting a new business), there is plenty that you can be doing in the meantime. Open a demo account with a forex broker and start practicing and honing your skills. You should not start trading with real money until you are confident that your system or methodology has a significant edge over a long series of trades.

 

Even once you have saved some start-up capital, you may still need to keep your day job unless you have other money to live off. The ideal scenario would be to have your start-up capital of 10,000 GBP, plus three years’ worth of salary to live off. Then what you need to do is use the power of compound interest. If you can double your bank every year – then you will be well on your way to becoming a professional forex trader. After three years, your starting bank would have risen to 80,000 GBP, and you could then start to withdraw some of your profits as a salary. This has got to be the ultimate aim of anyone trading the forex markets. It is possible, but it is not easy and you must treat it like a business and be patient.

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