How to trade forex for a living? You hear about it. You read about it and you wonder…how do these few forex traders manage to find the forex holy grail?
Wouldn’t it be good to trade forex for a living and tell your unappreciative boss this:
I’d love to trade forex for living…I’d be honest with you on that. I also don’t have any unappreciative boss so let me be clear on that.
So, you’d be right to say that right now, I’m the one that is kissing the ass.
I Trade Forex Now But The Money I Make From Trading Is Not Sufficient To “Fire My Boss”
I cannot tell my boss to kiss my ass (bit rude for for me to do that) And that ain’t gonna happen. The money I make in forex is not sufficient to trade forex full time.
I make money in forex but I’m a really bad trader…or to put it bluntly, I’m a high risk trader. I’m good at making a lot of money fast in forex and also blow it up…FAST!
And I’d like to be able to leave my day job but in order to do that, I need to have a backup plan.
2 Paths On How to Trade Forex For A Living
There are two types of path or ways to trading forex full time that you can choose.
Each path has its advantages and disadvantages and you need to consider each of them before you decide to trade forex forex for a living.
Here they are:
#1: Prove To Yourself Yourself That You Can Make Money Trading Forex
You take this path to trading forex full time after you’ve traded forex live and you’ve proven to yourself that you can make money consistently and you’ve developed the discipline to be successful forex trader.
And you know that you can continue to be successful when you start to trade full time.
You may have a day job and this will be next path to take. If you’ve been trading on the side whilst in your day job, it can be quite a challenge to trade forex full time.
You’d be thinking: “Am I making the right decision to leave the security of a regular paycheck and head for the unknown?”
The fact that you’ve proven to yourself that you can make money can make this decision a bit easier. If you have made enough money from trading forex while still having your 9-5 job, that even makes it more better because now you have a good cash buffer to keep you going for some time.
In addition, you need to have some cash saved up in the bank for your living expenses…ideal situation is to have at least 2 years worth of cash to live on.
This will give you stress free trading environment from the start as you are not trading forex full time to pay the bills immediately.
#2: Take The Plunge (No Proof Required…just determination to succeed)
This is when you really don’t have a very long trading history of proving yourself, maybe you’ve trade for only 3- 6 months and you’ve started making some good amount money and you think you can do it as a full time thing.
Or maybe you’ve already have enough money saved in the bank to see you through a few years and forex trading forms a only little part of that.
For example, you have $150,000 cash in the bank and you put in $50,000 to start trading forex full time.
The $150,000 is for you to live, like a backup, whilst that $50,000 trading account is what you try to make your living on.
Maybe your thought process is that once you trade forex full time, you’ll be a better trader. Maybe? Maybe not? But hey! Nobody’s stopping you.
Its your life, your choice and you are the boss of your own destiny. I cannot tell you what you can and can’t do.
But I’d say this: you need to really carefully consider all your options before you take the plunge.
Backup Plan On How To Trade Forex Forex For A Living Full Time?
When you plan to trade forex full time, two things can happen:
- you can succeed
- or you can fail.
Some get into full time forex trading thinking they can succeed and after a while, they fail and they realize they never should have got into it in the first place.
Some traders get into forex full time and they realize they should have done that many years ago but keep putting it back because of whatever reason(s) but now they are making a living full time trading forex and they are really enjoying it.
To be a bit safe, I suggest that you always have a backup plan.
Now, you can be either totally stupid, a nutcase even to jump full time into forex trading without any backup. I’m not going to be that kind of person.
I got a wife and a daughter to care for.
If you are single, you have less issues to consider except your expensive girlfriend/boyfriend who you may have to dump as this can make your living costs get higher.
I do own my own house though in another part of the world where the cost of living is very cheap, and if things get worse, I could live in my house for only $500 per month living expenses at least and live like a king.
But living in your own house does not mean the expenses (living costs) are going to stop….they will keep coming.
There’s are two things certain in this life that you can never avoid:
- taxes (and expenses)
- & death.
What’s gonna happen is I’m going to still work in my day job because I’m not stupid to quit my day job and take the plunge yet until I have a backup plan in place.
What’s my backup plan.
- at least $50,000 in cash in the bank
- $3,000 per month passive income from either brick and motar business or online business.
That $30,000 cash in bank is my backup. Me and my family can survive on that for at least 3 years. The $3,000 passive income each month is simply a bonus that supports or stops me from using that money in the bank If I don’t have to.
Then lastly, I’m not counting the forex trading profits I make that will help.
With this kind of setup and preparation, I believe it creates a stress free environment where you can learn and develop and trade forex for living.
Amount Of Money Required To Trade Forex Full Time
The amount of money you need to trade forex full time for a living should be sufficient to generate profits that could cover your living expenses.
Remember, you have quit your day job…the job that provides fixed steady income each week or each month.
Now, you are trading forex…a speculative activity with no guaranteed income and even if you make profits, they will fluctuate up and down a lot.
There will be months where you’ll be at a loss and there will be months when you’ll make profits.
If I am to quit my job to trade forex, I’d like to start with a $25,000 forex trading account.
Assuming that I make $2,500 on my first month on trading full time, that profit covers 5 months of living expenses. Remember, I said above, I can live off $500 per month?
The path to trading forex for a living full time can be different for many people. At the end of the day, what I say is irrelevant. Ultimately, its you who decide what to do.
All I’ve done here is provide you a guide on how to trade forex for living, showing you a few of the things you need to consider before you take that path every one of us as forex traders dream about.
Should you take that path ahead of me, my hats off to you!