Is it possible to do Forex trading for a living?

Trading Forex for a living is very challenging and it is associated with many risks. It requires a lot of preparation from traders that are really serious about it, but if they manage to do all the preparations right, Forex trading for a living is actually possible.
 
Some of the most successful full-time Forex traders are suggesting to take things very slow and follow the trading process step by step. In order to turn this business into a source of sufficient income, they usually start by acquiring some general knowledge first.
 
These traders also develop a specific mindset which helps them realize that success doesn’t come in an instant. They tend to mix working hours with trading, gradually moving towards Forex and increasing the budget.
 
This is the initial stage that many full-time traders have begun their careers. They realize that the first couple of years of learning and acquiring experience won’t allow them to pursue full-time Forex trading just yet.

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Making a living from Forex trading is challenging

When people hear Forex success stories from their friends or family members or read them on the Internet, they usually get the impression that trading FX for a living is very easy and doesn’t require much knowledge or experience. They tend to believe that it doesn’t take much effort or financial commitment to start Forex trading as a full-time job.
 
But oftentimes, the reality behind such stories is less exciting. Sure, buying currencies at one point of time and selling them at another while getting large payouts might seem easy, but it’s most certainly not. There are so many things to consider before one becomes a successful Forex trader and gets sufficient income from it.
 
Now, it’s not to say that trading Forex for a living is impossible; it is, but it usually requires getting knowledge and experience, as well as opening huge accounts with hundreds of thousands of dollars in size.


Popular misconceptions with trading FX for a living

Before we get into what it takes to become a successful full-time Forex trader, it’s worth taking look at some of the common misconceptions behind the Forex failure stories because, again, these are the expectations that many people have when wondering, if can anyone trade Forex for a living. Here are some of the most popular mistakes new traders make:
  • They believe success will come to them even if they have no experience;
  • They think the payout they’ll get at the initial stage will be sufficient for their expenses;
  • They fail to recognize the fact even if they have the experience, Forex trading is still risky and when someone succeeds, others usually fail;
and in general:
 
  • They don’t have experience/knowledge;
  • They don’t have proper expectations.


Success doesn’t come knocking on your door

The first misconception is associated with the above-mentioned success stories that people hear. But what they fail to realize is that those successful Forex traders have also been beginners at some point and that they have made mistakes - a lot of mistakes, probably.
 

And believing in sudden success usually has a bad effect when people start trading Forex for a living. Either they make a deposit of couple-hundred dollars and expect to get a fortune out of it, or spend thousands of dollars and lose it shortly afterward.


Smaller positions don’t bring large payouts

Another misconception that we mentioned earlier is the belief that traders can turn Forex trading into a full-time job right away. But the reality is different. In the initial stages of trading, people tend to get smaller payouts.
 
And what is more, if they want to actually make a career in Forex, they usually take a very small amount of that payout for everyday expenses. This means that when they suddenly switch from full-time jobs to full-time Forex trading, they find themselves in a bad financial situation.


Even the experienced traders can lose

This next mistake is associated with the safety of Forex trading. Many beginners think that if they acquire enough knowledge and experience, the risks will suddenly go away.
 
But with that belief, it becomes easy to make bad financial decisions. For example, a moderately experienced trader, who thinks that their knowledge won’t allow them to make mistakes, might put large funds into trading and with a sudden change in currency prices, all the money simply goes away.
 

How much capital to trade Forex for a living?

So, these common mistakes and misconceptions are making it hard for beginner traders to actually switch to full-time Forex trading for a living. But it doesn’t necessarily mean that one cannot avoid them and become a professional Forex trader in the future. This next section will cover the most popular suggestions that successful full-time traders offer.


Taking baby steps and not expecting instant payouts

First things first, traders at the beginning of their trading career tend to take things slowly and learn new things along the way. This means they’re reading books and articles, watching educational videos that explain how Forex trading is done and what its main elements are.
 
This method also includes a certain mindset that we have already mentioned in the misconceptions part. So, instead of expecting big payouts right away, traders make up their minds that their trading funds probably will not be able to support them financially for a while.

Combining Forex trading with existing job

Beginner traders tend to ask: Can you really trade Forex for a living? While at the initial stages, the answer to that question is probably “no”, some traders try to combine Forex trading with their existing jobs. This way, they get the idea about how easy it is for them to actually trade and get real payouts. And their jobs are still there to provide financial stability while they test themselves in the new field.
 
Now, this combination of Forex trading and a full-time job depends on many things. For example, if you don’t have sufficient experience in trading, it might be a good idea to use all the spare time that you have for Forex while still maintaining the job. As you become better at it, you can combine, say, 90% work and 10% trading (the numbers can be different for various people).


Gradually increase the budget

One of the main points that are very important to keep in mind is that when trading Forex, the majority of funds on the account stays there. Usually, a trader can withdraw 1% to 3% of their funds from their accounts for everyday expenses. The rest of it is used to buy and sell currency pairs.
 
So, this means that the initial stages don’t usually allow Forex traders to support themselves financially. That’s because to trade Forex for a living, smaller deposits and position sizes are almost never sufficient. That’s why it is usually a good idea to maintain the existing job and gradually switch from it to Forex.

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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

Can you make a living trading Forex?
Show answer
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 much do professional Forex traders make?
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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.
 
How safe is Forex trading?
Show answer
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.
 
Is it possible to trade FX for a living without investment?
Show answer
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.
 

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