The life of waking up in the morning, turning on your computer, executing a few trades and going back to sleep – sounds like the good life doesn’t it? Ask any aspiring investor whether this is how they live and you’ll receive a shocking answer. Whether or not you can invest for a living is dependent on the skills, discipline (and some luck) that you possess. The short answer on whether you can invest for a living is yes. The long answer is, it’s possible but there are some rules and guidelines that you must follow yourself to make it a reality. Let’s take a look at the life of an investor, how their schedule’s looks like and what you can do to emulate it into yours to become a full-time trader.
Investing For a Living
The fact that everyone states is that more than 95% of traders lose in this market, making it impossible for anyone to invest for a living. Yet this isn’t the case. There are a few things that you have to do for yourself to become a trader, one that consistently makes a profit, and enjoys it all the while. Take a look at Nial Fuller, a price action trader, and his work and you’ll see that he’s living proof that it is possible. (You can even message him if you’d like more answers to your questions!)
To start your journey to make a living from investing in the foreign exchange market, there are a few steps that you must take to accomplish this:
- Have a good amount of trading capital.
- Technical and Fundamental analysis
Having the right amount of trading capital is essential to the amount of profits and risk protection that you can have. If your funds are limited at the moment, you’ll have to accept the fact that you won’t be able to start to make a living from trading the foreign exchange market anytime soon. Every trader has a different regimen and the amount of trading capital will differ. In general, to manage your risk effectively, you’ll need a good amount of trading capital at your disposal to make some profits, while not putting yourself at too much risk exposure.
Technical and Fundamental Analysis
You can’t drive a vehicle without understanding the rules on the road are. If there was no structure, everything would be in chaos and no one would be able to get from point A to point B with ease. Likewise, trading the forex market requires knowledge on the proper strategies and tools that are provided to assist you. Trading for a living doesn’t mean that you’ll be over-analyzing the market; it’s about making all the conditions that you’ve created are as “perfect” as they can be.
Consistency, Consistency, Consistency
Trading the foreign exchange market is more than just being adequately funded and understanding the analysis methods. You also need to assure that you’re trading realistically and earning profits consistently. Having a tangible strategy that you can use is effective in the long term, rather than earning large profits in the short term that are inconsistent. There’s always another day to trade. As long as the global business exists, there will always be a market to trade on. It’s a learning progress and it does take time, as long as you have the time, patience and discipline, you can trade the foreign exchange market for a living.