Webring - Forex
If you have had enough with your current nine to five job and are sick of getting up at dawn just to sit in traffic there are other alternatives. However these alternatives require you to have a sharp mind and be a quick thinker, most importantly not letting your emotions get in the way. This alternative can be a full time job if you put the effort and research needed into it to be successful. I am talking about becoming a full time trader in the financial markets. With any job you must dedicate your day to your research and not let your focus wander. Becoming a trader from home will eliminate the morning commute and the boss who might not like you, but it doesn’t mean you can slack off either. If you want to make money like you did previously you will have to start with the right positive attitude.
Since there are many financial markets to trade, your first decision is what market to devote your research and time to. I recommend you pick one and learn as much as possible about it. This makes it easier to learn the ins and outs, giving you a better chance at succeeding to make a living. The main markets that most start to trade are the equities markets, the fixed income markets, the commodities markets, and the forex market. Each market is different in its own unique ways; it’s up to you to decide what market you feel most comfortable trading in. Keep in mind there are minimum deposits that each broker requires before you start to trade. If you choose to trade equities or fixed income expect a larger minimum deposit. Equities brokers typically require $1000.00 for you to open a cash account and $2500.00 if you want to trade on margin. Margin allows you to trade with borrowed money so you can purchase more that what you cash balance allows.
If the initial deposit for an equities broker is too high, forex brokers require a much smaller deposit to start trading. There are some forex brokers who will allow you to start trading with as little as a $25.00 deposit. This is not a lie; this small amount will fund a real live account that you can trade immediately. Not to mention the broker will allow you to leverage your position with the firm’s money so you can achieve a higher profit. Of course if you have not used the broker’s Forex demo Account before trading, you will have a greater chance of losing your deposit and having to transfer more money into your account. It is advised that no matter what type of market or broker you choose to go with, that you trade on their paper money or demo account first. If you can consistently make profits from the demo account then try and trade with real money using small positions. The people who end up losing all their initial deposits are those that gamble away their entire account into one stock or currency pair. If you start small you have a better chance of making it to tomorrow. Once you start to take real profits and have a Trading system that works, then start adding in bigger positions. As a last thought, using stop limit and stop loss orders are the key to preserving capital. Do not let a losing position get out of hand. If you can learn to take small losses instead of big ones when you Trade Forex you can find success in trading for a living.
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My advice in Daytrading is; RESEARCH RESEARCH RESEARCH!
That is the only way you can make daytrading a skill and not another way to gamble.
Greetz Rob
I’d add, research yourself primarily
My advice to “day trading” is to get your self educated then be disciplined enough to follow what you have learnt. It can become the best job in the world.
Rocco recently posted..Secrets Of Successful Traders – 6 Reasons To Get Started Today
Trading can be very profitable but most people expect to get rich overnight and usually lose all their capital, for that reason someone should see trading as a job which means that he/she should first develop the skills and knowledge and then try on a live account
Kostas recently posted..4 Ways to Leverage Demo/Practice Accounts
I partly agree, although I never advocate trading a practice account. Of course one should buy some books, videos and trading systems before attacking the experienced traders, Trading real money and Noddy money are 2 different activities, when you trade real money, and I recommend starting with micro lots, you are engaged psychologically, trading a demo has little impact.
Hi Mark,
What percentage gains can a good trader expect to make per month? I’m talking about a forex trader who has been trading for many years and is now a consistently profitable trader.
I understand one can still have losing weeks/months but just a rough idea would be very helpful as no one i have ever asked this question can give me a satisfactory answer.
The usual answer is that the best fund managers make 10 to 15% per annum but surely it’s wrong to compare a fund manager who manages millions/billions and therefore can’t get in and out of trades easily with a private trader who can exit like lightning?
10% per annum is less than 1% per month, surely a consistently profitable full time private trader can make more than 10% per month let alone per year?
Many Thanks
John