The honest truth. Can You Make a Living Trading Forex full time? A daunting question on every new trader’s mind. This topic gets most of us extremely excited just thinking or reading about it, a dream of financial freedom and no 9 to 5. Technically it means more than that. It means more time with family and friends, the people you care about most!
How badly you want this and how much this dream or goal means to you, is what will be the difference between reality and fantasy. It is always good to dream big but you need to put in the “blood, sweat and tears.” In essence, this phrase refers to hard work and dedication. Is this even a possibility you may ask? Can this become your reality? If you believe, you can achieve. It is all a mind game but let’s not forget the financial aspect of it.
Even if everything goes in your favour, it might take longer for some than others. Should this crush your dream? No! Let’s break it down into bite-size chunks.
Trading Forex Full Time
When we mention full-time, we refer to it as more than a job. We refer to it as a business, your business. There is an old saying: “Treat it like a business and it will grow like a business.” What you put in, is what you can expect to get out! If you don’t acknowledge or accept this fact, you have already failed. A sad reality for most traders. Why? They think this can be achieved overnight, in a week, a month or even a year.
Yes, with the right amount of capital you decrease the time frame in which this can be achieved. It does help put is not the alpha and omega. We have seen lots of highly funded trading accounts go to zero. Greed, lack of discipline, over trading and FOMO (Fear of Missing Out). Let’s see if You can make a Living Trading Forex. Do you have what it takes?
How much should I start with?
Two things come to mind. How much should you, and how much can you start with. Both are two different yet important factors. I can start with x amount only can put you on the back-foot but should not discourage you. Some are more fortunate than others.
Read this in-depth article we wrote in our Forex Education section in regards to how much you should start your trading account with.
How much do you really need to quit your day job? As professional traders, we potentially and consistently can make up to 10% per month, return on investment. Don’t get us wrong, this is not easily achievable for beginners or intermediate traders. Take note of the word consistently and potentially. What gets them to those numbers? Good risk management! We cannot stress this enough, without good risk management you are setting yourself up for failure.
Your 10% should be equivalent to your current monthly income, which makes sense if you are planning to say goodbye to the 9 – 5. This should and will most likely not happen from month one, which is 100% normal. Work yourself up to that amount. Let us explain how in the next part of the article.
Compound Returns
Compounding your returns is your best friend! This is a great way to amplify and grow your account balance. Whenever possible, don’t withdraw your monthly profits. Put them to good use by “re-investing” them into your trades.
Obviously, this indicates, that if you have to build up to the amount needed for the 10% to cover your monthly expenses, you will get there a lot faster. If you can achieve this in 12 months, you would be part of the 5%. Don’t rush it, it will be worth it in the end.
The Honest Truth
If you cannot start with at least R1,000, start saving. The last thing we want is for you to risk money you cannot afford to lose! The more you can start with the better your odds to achieve the goals mentioned. Don’t forget to build experience, educate yourself and practise good risk management. Rome was not built in a day. This is not a race, it is a marathon. The conclusion, Can You Make A Living Trading Forex? If you have what it takes and can stay disciplined, Yes!