Hello readers, welcome back. If you just stumbled upon this post, Hi to you as well and you are all welcome, I hope you like it here. Today I might not be your favorite Forex blogger after reading this post because I am about to be brutally honest and I might just burst your bubble.
I know the truth hurts, I hope you find a band aid. I apologise in advance, my intentions are all good though. I hope by the time you finish reading this post, you will make the best decision. Most of my blog posts are from my own experiences or just from listening to my reader’s questions and responding to them via a blog post. I have listened again, hence this blog post. Today I am going to address the “I want to quit my job and trade Forex full time” question. Just hear my views, and you can decide if you still want to. A few questions to ask yourself.
How long have you been trading?
You need to ask yourself if you do have the required experience in the markets. If you have at least traded for 2 years consistently. I know you are probably thinking of that guy/lady you admire so much on IG and FB who just told you this past weekend over his seminar that you can actually make it big as a Forex trader.
I want you to know that that’s very true and possible, but maybe the guy/lady has some trading experience and he/she “forgot” to mention that to you, do not worry though, I got your back OK. You are also probably thinking that if you learn from that person, you will make it. Truth is, you cannot buy his/her experience. You will have to gain yours. So think about that and also be aware that the required experience may be costly.
How much are you willing to invest?
Ok, I get this one a lot, I always get this question about how much can one start with. I even wrote a blog post addressing it, see HERE . Like any other business, if you invest more money in your fruit & vegetable shop, you will be able to buy more stock which will then lead to making more money (if you manage to sell everything, also bear in mind that there might be natural disaster which may lead to unexpected losses, that is how business is).
You will actually make more money than the person who had a small amount of money to start with (I hope I make sense). In your trading account as well, your profits are highly linked to your account size. The more money you have, the more financial instruments you can buy or sell (in larger quantities) which will then lead to bigger profits. We can all trade exactly the same instruments, make the same number of pips, but the volume traded makes all the difference. Forex and fruit & veggies in one sentence? That’s how real I keep it.
Just to get the point across, let’s say you make a whooping 100% every month consistently (Ok, you guys know that I am not out here to double accounts and I do not really believe in that or even know how to double accounts consistently, but let’s just go with that 100%). You are a new trader, you just invested $300 and you can make that 100% (I am so uncomfortable to even write about this 100%). Are you really looking at making a living with only $300 per month? Have you seen the price of food my friend? (I won’t even go as far as talking about petrol and other day to day needs like school fees) so, think about all that, if your answer is no, please keep your day job and continue to trade. Work harder so you can invest more money in your account to make more.
How many hours are you planning to spend?
Ok, with this one, we have to go with my method of trading (my blog, my rules *smiles) which does not require me to stay glued to my laptop the whole day. My live trading sessions are pre-planned. Let’s assume you are all trading with me (please guys show some love and make me famous please, just for the purpose of this post, you guys are all trading with me just for today).
Let’s say we only have 2 trading sessions each day (Monday to Friday). What are you going to do the whole day? Are you just going to sit around waiting for the live trading session? Guys, you will be bored to death believe me. Think about what you will do when you are not trading. Even if you are not trading with me, no one trades every minute all day long. Think about that. Find purpose and be productive. We have a whole life ahead of us. Trading account should not stop us from growing in other areas of our lives.
What if it doesn’t work out?
I can “see” your eyes popping out as you read this. Yes, it can happen. It might not work out. You might give up along the way because you are lacking patience and you are too eager to make money. It might not work out for you because you are all over the place trying every method of trading that you see online. Or it might not work for your simply because you are worrying too much. It happens a lot when you are trading under so much pressure.
You are likely to stress and make so many mistakes when you are already thinking about your monthly bills. Who wants to have one income stream anyway? It is never a good idea to have one income, especially if your only income comes from the markets. We do not create our own trading opportunities in the markets, so what are you going to eat when the trading opportunities aren’t as plenty as they used to be? Think about that.
This post is not about instilling fear. This post is all about being realistic, about what could happen when you drop everything and just trade. For the records, I also try by all means to have as many income streams as possible. I find it weird to have people asking me the “I thought you were trading” question whenever I mention other business ventures that are not markets related.
Until you start that business and it is now paying you, please keep your day job. I know most people do not love their jobs. But think about it. I usually talk about these in detail with my mentees. If you wish to know more about how to be one of them, kindly check all details HERE. I hope you found some value in this post, kindly share to assist other traders out there.
Please help to keep this blog going with free content. If you need to open a live account kindly register with one of the recommended FSCA regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 or +27 64 510 4132. Thank you for stopping by.
Economic News To Watch This Week
Please help to keep this blog going with free content. If you need to open a live account kindly register with one of the recommended FSB regulated brokers using the links provided HERE. For further assistance you can WhatsApp me on: +27 76 966 9392 or +27 64 510 4132. Should you need private mentorship, see details HERE. Below is our weekly economic calendar.
Economic News To Watch This Week
Highlights from last week: Reserve Bank of Australia (RBA) left their interest rates unchanged at 1.50%. The U.K Construction PMI dropped by 48.1. The biggest news which left so many traders confused was the U.S payrolls which decreased by 33.1k but the U.S dollar did not fall as many would have expected it to fall. I wrote a blog post about how to trade the Non-Farm Payroll. Check the post HERE, so you can know why the U.S dollar did not fall on such a low job number. On another news, Donald Trump has released his list of candidates for the Fed Chair replacement. Will he replace Janet Yellen? We shall see. Below is our weekly economic calendar.