Thinking about becoming a Forex trader full-time, but not sure of whether or not it’s the right move to make – or if it’s even possible?
You might be surprised to learn that there are lots of people that have given up their “day job” to jump headfirst into the Forex market – and many of them have not only replaced their former full-time income, but have multiplied it (sometimes dramatically). With that being said… Can Forex be a full time job?
Forex trading can be a full time job and is a full time job for many traders around the world. The overwhelming majority of forex traders don’t trade as their full time income as they do not make enough money from trading to sustain this. It is, however, very possible to trade forex as a full time job if you are skilled enough.
Can Forex Be a Full Time Job?
Straight out of the gate, it’s important to understand that while Forex can be a full-time job for anybody that doesn’t necessarily mean that it can be a full-time job that is profitable.
There are a lot of investors in the Forex world that spend morning tonight staring at charts, crunching different reports, paying attention to the movement of currency pairs across the market – and still end up losing mountains of money.
It could be argued that while that approach definitely is a full-time job (and then some) that’s not what most people mean when they want to know can Forex be a full-time job.
Before you take the plunge into this kind of investing – and especially before you think about giving up your day job and becoming a Forex trader full-time – you need to ask yourself these core questions:
What are Your Goals?
What exactly are you hoping to get out of your full-time Forex investing?
Are you looking to completely replace your full-time income and just spend a lot less time each week doing so?
Are you more interested in multiplying your full-time income with the power and leverage Forex brings to the table but are willing to work 40 hours (or more) each week to make that happen?
Do you fit somewhere in the middle?
You absolutely must have your goals outlined with crystal clarity before you decide to go full-time as a Forex trader.
Skip this step and you’ll fall flat on your face like so many others already have.
How Much Capital Do You Have?
Secondly, you need to think about how much capital you have access to and how much you are willing to leverage in the Forex markets.
Do you have a decent sized nest egg built up that you can pour directly into the Forex markets, capitalizing on the extra leverage brokers offer to really outsized your wins and pulling record profits?
Do you have a smaller sized nest egg that you’re ready to capitalize and are looking for smaller profits that you can roll into a larger bankroll before making bigger moves in Forex?
Or are you just looking to put pockets of cash into the market every day, hoping to turn a profit, and then going from there?
These are the kinds of things you need to know before you’re able to determine whether or not Forex can be a full-time job for you.
To go into trading as a full time job, you would need around $100,000 in trading capital to be safe. This will allow for you to make a few percent per month and pay your bills.
If you’re starting trading with $500, for example, it’s unlikely that you’ll be able to make enough profits to take this seriously and commit to going full time.
I’d highly recommend looking at some of the top forex prop firms in the industry to checkout your options when it comes to funded accounts!
Why Are You Getting into Forex?
Finally, you need to think about why are you getting into Forex specifically.
There’s a lot of research, a lot of studying, and a lot of paying attention that needs to happen if you are going to have success in Forex – both short and long-term.
If you’re just looking to sit back, watch a couple of charts as they move throughout the day, and make trades on a whim you’re probably not going to be able to make this a full-time job.
If, on the other hand, you’re willing to put in the work and really treat this as a new career – or a new business – than the odds are pretty good you’ll have a lot more success in Forex for sure.
But understand why you’re getting into Forex specifically before you take the plunge.
How to Become a Full Time Forex Trader
If you’ve decided to become a full-time Forex trader after all here are a couple of things you’ll want to think about to help you get a running head start.
Research Trading Strategies and Then Stick to the Plan
You can trade the Forex market “instinctively” if you want to.
But that’s the fast road to failure unless you get spectacularly lucky.
Instead you’ll want to research a bunch of trading strategies, find strategies that resonate with you and the goals you’re looking to achieve, and then commit to that plan moving forward.
You can pivot later down the line for sure. But you need a solid foundation to build your full-time Forex career on.
Treat Forex Like a Business
Secondly, you need to be sure that you are ready to treat Forex like a business or a new career and not like a profitable hobby.
You need to get up early in the morning, read the latest news, track chart trends and movement, and then hunkered down to monitor the Forex market as it moves throughout the day.
This has to happen regularly and consistently.
A lot of Forex successes marketed as a two hour a day job, and while there are some Forex investors that enjoy a lot of success with that kind of approach there are tons more that bottom out, lose everything, and quit Forex because they took this “lazy man’s way to riches” approach initially.
Don’t let that happen to you.
Have an Emergency Fund in Support
Before you jump into Forex trading is a full-time job be sure that you have an emergency fund in support that you can rely on if Forex trading proves to be a little more challenging than you initially expected.
Three to six months of expenses in a bank account somewhere (and ideally a full year of expenses) will help cushion your early trading activity in Forex, especially if you don’t hit it big right out of the gate.
Paper Trade for Three Months Before You Take the Leap
Always – ALWAYS – paper trade on a day-to-day basis for three months (minimum) before you decide to make Forex trading your full-time gig.
You need to know the mechanisms of how Forex works. You need to know how to research and execute trades. You need to know how to analyze all the moves you’ve made and determine whether or not they’ve been profitable or should be avoided in the future.
Paper trading won’t teach you the psychology of putting $10,000 or more on the line on a risky Forex trade, but it’ll give you practical knowledge of how to move through Forex that is invaluable.
If you don’t fancy paper trading, I’d recommend demo accounts. When most traders hear this they are quick to jump to ‘aren’t demo accounts rigged?‘. Well, no, they aren’t! They actually provide a great environment for traders to learn in, without causing any risk to their financial situation.
Should Forex Trading Be a Part Time Job?
At the same, maybe you decide that Forex is better left a part-time gig for you.
There’s nothing wrong with that!
Plenty of Forex investors enjoy significant profits trading part-time, jumping into the market only when they see a new trend bubbling up, or executing positions that are very short-term.
Just be sure that your Forex strategies align with this part-time approach. I’d recommend looking at more swing trading strategies for this approach.
Be decisive with your trades, too. You don’t want to “snooze and lose” when you are a part-time trader.
Another benefit of keeping forex trading as a part time job is the simple fact that banks don’t love the idea of lending money to forex traders.
It’s actually incredibly hard for forex traders to get a mortgage, so having another income source is always a huge benefit.
Good luck going forward!
In Summary – Can You Trade Forex Full Time?
In conclusion, you can become a full time forex trader, but it will take some time, effort and a solid plan. Be sure to research strategies and commit to a plan, treating forex like a business. Have an emergency fund in place and always paper trade for at least 3 months before making the switch to live trading. You may also want to consider keeping Forex as a part-time gig. Whatever you decide, good luck!