A day in the life of a full-time forex trader

A day in the life of a full-time forex trader

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.

mobile trading platform

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.

Your 4-Step Guide to Opening a Trading Account

 

Step 1: Getting registered

It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the movie as you go through the first three steps.

Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.

Step 2: Prove who you are

Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.

Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.

 

Step 3: how to get access to the market

Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.

 

Step 4: making a trade

As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.

As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.

There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.

Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.

Congratulations! You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?

 

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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.



 

 

 

 

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