Until recently, the name forex inspired fear and mistrust for many people not familiar with the financial industry. Not so long ago, the financial opportunities that came with trading currency pairs were only available to big businesses and fat cats in suits working in glass tower offices. Now, thanks to advances in personal computing and internet connections, the global market is readily available to anyone with a credit card or eWallet.
There are people all over the world who made a choice to pursue trading as a full-time activity. The life of a full-time trader from home can be lonely, as is often the case for work-from-home activities such as freelancing or blogging. It’s not for everyone. If you’re thinking about pursuing trading as a daily activity, read this first. Of course, this does not represent every stay-home trader. This is just one of many versions.
Thinking about trading? Click Here and follow this simple 4-step guide
Fly on the wall: the life of a trader
New traders who have a knack for reading the markets often set a goal to make trading a full-time career. The concept of building a big bank account, quitting the job, and being your own boss is an attractive one, but this is the dream, and very few people have the character or patience to make it happen. Those select few who made it to the top now enjoy financial freedom, freedom to spend their time doing whatever they want to do, but they are the minority. It’s not impossible, but it takes skill, hard work, patience, determination, time, and some say luck. As with almost everything in life, there’s no guarantee.
Like most of us, a stay-at-home trader’s day might start with a cup of coffee and a laptop at the kitchen table. They start by checking the news feeds to see what might be affecting the markets. Checking the economic calendar is a must. News releases can greatly affect the market prices and often run counter to technical analysis. Too many traders reading the trends get caught out with price reversals or spikes that commonly follow an important economic announcement.
If the news boards are clear, it’s time to open up the MT4 trading platform and start glancing over the charts and taking notes. When everyone else is getting ready for their morning commute, a trader is already working. A traders commute might be from the kitchen to the sofa or garden area (if weather permits), but they are already on the job.
Research & patience
Research is key, due diligence paramount, and patience is often the thing that keeps it all together. There’s no hurry. A trader might spend the whole day viewing charts without making a single trade. Savvy traders choose their battles wisely. If something catches the trader’s eye in the morning, they’ll place an order or two. The day is starting well, time for a break.
Note* Trading is not like gambling. With roulette, you place a bet then get a win or loss instantly. Forex is nothing like this. Profits (or losses) accumulate over time. You must decide which direction to go, but you must also decide when to get out. The direction is selected by the trend analysis or the expectations of the news release, the duration of the order (AKA contract) is down to how much you are aiming to gain (or risk).
Your money is working for you now, even when you are not there. Take a shower, do the dishes, go jogging. Your trades will be waiting for you when you get back. Of course, you can stay home and keep a close watch too! Some traders decide to claim that small storage room in the house, put in a desk and a handful of monitors and call it “the office”. They wear shirts and slacks and work fixed hours, and swear they are more productive.
Some go the opposite way. They dress casually and take their laptop into the world. They sit in coffee shops, restaurants, even bars, connect to the WIFI, and make trades at their leisure. Some simply trade on their mobile phone using their data network with the mobile trading terminal and trade in the great outdoors. The options are practically unlimited.Step 1: Getting registeredStep 1: Getting registered.
Smart trading from home
There are ways to protect yourself from unexpected price shifts. Two musts are the Stop Loss and the Take Profit. When traders place an order, they can set an amount they’d be happy to earn. There’s no rule for this, it’s a personal preference. Same goes for Stop Loss. How much are you prepared to lose? These two functions are automatic and activate when orders hit the parameters you set. This lets a trader open multiple orders throughout the day without having to keep a minute by minute vigil. Opening multiple contracts is often referred to as diversification (not putting all your eggs in one basket). This way, you can still meet your investment quota of the day, but your results won’t be tied to one decision. It also means that you can use your free time to do other things. Watch a movie or some trading tutorials, read a book, do the shopping.
The day is running. Time to check your laptop and see how your orders are doing. Check the graphs and see the movements for the morning and maybe add a few more orders on anything that caught your eye. What are you going to do now?
How to become a full-time trader
You can’t just quit your job and jump in with both feet. Fortune favours the brave, but such impulsive action will likely end badly. Every mountain is climbed one step at a time. The very first step is to open an account and gain access to the markets. It can be scary at first, but it’s not as hard as you think. Learner drivers don’t learn by reading, they get in the car and start driving. They have a professional by their side to keep them safe, but brokers have a much safer way of learning.
TIP* Once you’re up and running, play with the demo account for a few hours. Check the economic calendar, look for a price trend, and make some risk-free virtual trades. You’ll know when you are ready to start pursuing real results.
Let’s get you started. The first step is to get access to the global markets through a secure and personal account.
Not sure how to get started? No problem. Follow this step-by-step guide.