Is it possible to trade FX for a living? - It depends
Forex trading, just like any other field of occupation, is not for everyone. Some people are naturally good with numbers, statistics, and financial trends and find trading more or less easy. But there are also those who cannot do that.
But even the first group of people usually need experience and knowledge, as well as a proper mindset in Forex in order to be successful in the field. As we looked at the common misconceptions regarding how to make a living trading FX, beginner traders tend to think that trading is really easy and large payouts come without hard work; some of them believe that small deposits are sufficient for full-time Forex trading; while some fail to recognize that usually, out of 100 people, 90 of traders lose money and even the experienced ones aren’t totally protected.
So, to avoid such mistakes and really make efforts to switch to Forex trading, successful traders tend to take smaller steps and gain knowledge along the way; combine existing jobs with trading, and start with smaller deposits and slowly increase them to finally get enough payouts for regular expenses.
In conclusion, it is definitely possible to do full-time Forex trading by replacing existing jobs. However, it takes a lot of hard work and dedication from traders.
FAQ on whether Forex trading for a living is possible or not
Is it possible to trade FX for a living without investment?
A successful Forex trading process, the one that allows traders to get sufficient income from it, is associated with big deposits and massive purchases of currency pairs. That’s usually the case because only a fraction of the actual account size, somewhere around 1-3%, can be withdrawn for regular expenses.
Other than that, there are actually some ways in which traders can still earn money by not making financial commitments. One of the methods is called no deposit bonus. This method is offered by some service providers and it allows traders to open accounts, get initial deposit bonuses from the provider like $100, and if they fulfill some deadlines and goals, they can get whatever payout they have generated as a result.
Can you make a living trading Forex?
Trading Forex for profit is the main reason why people engage in this field of financial activity. And there are certain things that need to be taken into account if a person wants to get real payouts from it.
Many successful traders suggest that people who are serious about Forex get an education first, learn the basic elements and mechanisms of Forex trading and then get to the trading part. This way, they won’t make as many mistakes that would put them in a bad financial situation.
Another important thing to keep in mind is that trading Forex for a considerable size of payout requires large account sizes as well. For instance, if a trader wants to get around $2,000 a month from trading, they would probably need to open up an account of around $200,000-$500,000. That’s because, usually, traders can withdraw about 1%-3% from their accounts to actually spend it.
And finally, taking things slow, increasing the trading size step by step, tends to be a sustainable strategy towards a successful Forex trading.
How safe is Forex trading?
Forex trading, along with other types of trading, is a very risky job and requires a lot of attention from traders. And there are various reasons why this is the case.
First, the currency prices can be quite volatile, meaning they can go up and down very quickly and with large differences. Anyone who has bought a large number of currency pairs is risking their funds because of such sudden price movements.
Another risky element that is necessary to understand when trading FX for a living is leverage. Many service providers offer leverages to increase payouts received from trades and it can be quite useful for traders as well. However, this indicator also increases the size of the potential loss of the trader. So, it’s an indicator that needs to be used safely.
How much do professional Forex traders make?
In the Forex trading industry, there’s common knowledge about how much capital to trade Forex for a living, that traders can withdraw about 1-3% of their funds that they can actually spend, while the rest of the funds is returned to the trading process.
Based on this information, one can get a pretty good idea of how much capital they need to put into the foreign exchange to actually get a decent monthly salary. And when it comes to professional Forex traders, they usually open accounts that are no smaller than hundreds of thousands of dollars in size.
This way, their income can vary from thousands or tens of thousands of dollars per month. But there’s a catch to it: by increasing their account sizes and possible payouts, they also risk more money for a loss.