Trade Forex for a Good Living

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If you are considering trading forex for a living, here's a word of caution for you. If you thought that this job entailed just a few hours in front of your computer, expertise in a few technical analysis tools for trend analysis and statistical probabilities, and a secure means of steady income flow, you couldn't be more wrong. The dynamics of trading forex requires great skill and timing, the ability to withstand a few blows (there will certainly be quite a few) and a hundred percent acceptance of the few extra gray hair that you will always seem to be growing. Only if you have the grit and determination to succeed despite failures and have the requisite financial knowledge and education, are you qualified to even consider becoming a full-time forex trader. As a beginner, you can only play it low and safe, till you gain the absolutely essential exposure and experience to become a pro. If you think you have what it takes to trade forex full-time, let me take you a step closer in learning to trade forex like a pro.

Prerequisites to Enter the Forex Trade Markets
Before you dive head first into the forex trading field, please gain adequate information on queries like, 'does anyone make a living out of forex' and 'how much capital does one need for it. These two questions should be enough of a reality check on your big money schemes. It is true that you can earn huge amounts by trading in the forex markets, but it is also true that only a few highly skilled individuals actually do so and the probability of that happening is very low. If that probability in itself is low, you can just imagine how low the probability of that happening on a regular basis is. Think about it.

Apart from this you need to have the adequate financial knowledge of how the forex markets work, what are the different forex trading strategies and which is the best strategy for you, i.e. which strategy is in the best alignment with your income goals, investment horizons, risk willingness, and other factors. Last but not the least, the market is a cruel world that shows big dreams. Know who are friends and advisors are and check their background track records before you follow them blindly. Having a fair and level head is an absolutely essential prerequisite when you think of trading forex for a living. To help you in your dream job, the paragraphs below list the main trading strategies. These are followed by some forex trading tips to help you trade forex and make it your primary, full-time job.

Trading Strategies
Your trading game plan should be based on one of the following forex trading strategies or should be a combination of them. Mastering the forex trading techniques mentioned below should help you in your goal to trade forex for a living.

pip = the smallest possible price change in an exchange rate

Forex Trading Tips

As a beginner forex trader, just aim for maximum account growth at minimal risk. You can move on to taking on increased risk for reaping greater rewards when you advance in the field of forex trading.
If you already have another job, never leave it on a whim to trade forex and making big money. Gain experience and exposure first. Once you are adept at the workings of the forex markets and have turned pro in skills and market timing, you can consider making forex trade your full-time occupation. Till then, make it a secondary job, parallel to your primary one.
Learn all the possible money management skills for they are absolutely essential for survival in this rough and tough field. To trade forex for a living, you must learn the tricks of controlling losing bets from cascading out of control. Money management will also teach you to retain your winners in the 'winners' category over the longer run.
Always trade in currency pairs, for this will serve as a kind of hedging technique. Open positions in forex markets, especially when you have taken large positions in a single currency, leave you with very heavy risks of potential losses in case of adverse exchange rate movements in that particular currency.
Do a proper trend analysis to know your entry and exit positions. In this trade, beginner's luck always wears off and it is sheer skill and precise market timing that will let you survive the long run.
Leave your personal feelings out of this, especially greed, for it can be your downfall. Exiting positions at the right time is the only thing that will make you money. Waiting for higher gains which may never materialize is a common folly. Trust your intuition and experience.
Great successes can only be based on proper defenses. Always hedge your risks. Though these may reduce your upscale profit potential, these will also put a floor on your potential losses. Remember that when you trade forex for a living, it is your primary source of income, and it is your duty not to put it under unnecessary jeopardy.
Failure is a part and parcel of the job so do not make losing money your final failure. Persist with your goals and learn from your mistakes. It is always best to take time out from trading after a loss or failure, for this will help you view your mistakes objectively. The forex market is too fickle to stay down, or up for that matter, forever.

I hope you can now make an informed decision on whether you have it in you to trade forex for living. Granted that the filed has scope for big money, but like all other things we do for a livelihood, this too has some pros and cons. Forex trading is definitely not for the faint-hearted. If it is risk you crave, you have other, marginally safer, (and easier to learn) options like stock trading and futures trading. Options trading and forex trading require much more in the mind than in skills. If you think you have it, do trade forex to make a living, as the gains can be especially high.