How simple it is to make Forex trading a job?Dwain Ross 20 / April / 21 Visitors: 100
How simple it is to make Forex trading a job? How simple it is to start earning real money? How much can you earn per day, per month? Where to begin? Are there any pitfalls along the way and if so, how to avoid them? Where to go if something does not work out? These and many other questions come up in mind a trader. Jobs for traders differ from the ones we call traditional in many respects; therefore, it will be useful to learn the trade job definition at least for the overall development. A trader is a person who trades in stock and over-the-counter markets in order to profit from trading operations. In fact, a trader's job is mostly buying a certain asset cheap and selling it at a higher price. Assets which traders work most often with are currency, securities, contracts (options and futures), precious metals, commodities (oil, grain, etc.), stock indices, cryptocurrency.
Many confuse the job of a trader and the job of a broker. In fact, they are completely different: a broker provides access to exchange trading and profits on commissions from each of their clients' transaction and a trader is a broker's client who profits on the difference between the buying and selling price of the assets they trade. The traders' working process changed in some way with the development of new technologies but it did not change its essence. If at first a trader had to personally visit the exchange to make trades, then they got an opportunity to give orders to brokers by phone and now a trader can work at home or in an office performing all operations of buying and selling assets remotely, via the Internet. All it takes is having a special program - a trading terminal, download it from the website of any broker a trader works with and install it.
Trading jobs mostly consist of analyzing the price changes of the assets that they trade; based on this, they make predictions for further changes and open trades in that direction. In order to do this, they mainly use 3 approaches to analysis:
- Fundamental analysis;
- Technical analysis;
- Computer analysis.
A trader can work for a company; it involves an official placement as part of the staff of a certain company (it can be a bank, an investment fund, a brokerage company, a large corporation, etc.), performing market transactions on behalf of this company and operating with its capital. In this case, the trader's earnings are a fixed percentage of the profits from the transactions or a fixed salary. This option is interesting because a trader gets an opportunity to earn without risking their own capital, while the amount of capital can be much larger. However, in order to get a job as a trader in a company, it is necessary to show good results of independent trade: the employer has to see that the trader is really capable of profitable trading and will not waste money entrusted to him.
On the other hand, you can opt for Forex trading online jobs and work for yourself. In this case, a trader chooses a broker, through whom they will enter the market independently, opens their own trading account, deposits money and trades with it as they please. This has its advantages: the trader gets all the money; they can plan the working day independently, i.e. decide when to work and when not. But there are significant disadvantages: a trader risks their own money and as you know, trading is a very uncertain way of earning money; they operate with a limited capital - and the amount of income directly depends on the size of the invested amount.
If you are hesitant about choosing this type of profession, let's take a brief look at the positive aspects of trade jobs:
- You are your own boss.
Most of the times, you have no say in who your boss is and many people have to put up with it. However, when you are a trader, you are in charge of how your working day – you can change the current plans and to solve problems without having to ask somebody for permission or time off. When to work and how much time to devote to it is in your hands. Moreover, the fear of being fired, which is an unconscious worry for every employee working for someone else, does not apply to you. Especially the risk of being let go increases during periods of business decline or economic issues in the country or industry.
- Opportunity to start with small amounts.
Modern trading allows you to enter the markets with insignificant capital; for example, up to $10. Of course, in this case your profit will correspond to that amount; however, operating with small amounts will allow you to try out the system without particular risk, develop a trading strategy and tactics. Many exceptionally successful speculators often start with small initial investments and only later begin to earn on a large scale. Be aware that this requires time and experience.
- Practically no limits in your earnings.
It does not mean that in you are definitely going to be making millions; but if you want, you have more opportunities to shape your income. Opportunities are much greater and you are not restricted by a rigid salary. Your profit will directly depend on your actions and your deposit. Perhaps, you are not looking for ridiculously big money, which is a healthy approach, but you know that the option is there.
- Constant self-improvement.
The pledge of productive work in the Forex market consists of training and constant replenishment of knowledge and self-improvement. This means you need to analyze what you are doing right and what you are doing wrong all the time to make better trading decisions in the future. One of the best ways to get started with this type of analysis is by setting up a trading journal and keeping track of your progress. Trading allows you to work on your professional skills as well as understand yourself better and develop personal skills that you can use in your life outside work.
- Remote work.
You can arrange the workplace at home or rent an office anywhere you want based on personal preferences and opportunities. All you need is a computer, which, however, can be even replaced with a laptop or smartphone. That makes it possible for you to trade whenever and wherever you prefer. The stock market operates only during business hours but they are different in each country due to the time zones. Thus, for example, if you are in America, you can carry out transactions with Asian securities at night. Not to mention, the Forex market functions 24 hours a day with only trading sessions replacing each other.
- The possibility of trade automation.
Those who for some reason cannot or do not want to trade themselves but want to profit from market speculation can transfer their capital to the management of another successful trader or use the PAMM-accounts service. Thus, he will be able to receive passive income. In other words, you can free up your time and only keep an eye on the programs; most of the work is done for you.
- Free education.
In particular, the following models of free education have proved themselves well:
1. Free short-term courses from Forex brokers can be offered either in the form of promotional campaigns or the standard customer service option. Such programs will teach you the necessary theoretical basis for Forex trading; you can also try out demonstration trading accounts to start putting your knowledge into practice.
2. A trader can get unlimited access to various online sources offering a variety of information on Forex presented in various forms (articles, books, magazines, videos, thematic forums, online conferences).
3. Trade on demo trading accounts with virtual money. In order to do this, a trader simply needs to install a trading platform on their computer and register a trading account free of charge.
Disadvantages of jobs for traders are:
- High risks.
A major drawback of trading on the financial market is a very high probability of losing your investments. There are very few successful traders out there, the rest stay in the market for different amounts of time and eventually lose their trading capital. Anything that has to do with big money implies that there will be risks and no one can be 100% protected against them.
As has been said before, you are on your own. Whereas being your own boss sounds tempting, it also means that no one will have your back. You also do not have colleagues to delegate your responsibilities to so you have to manage everything.
- Emotional health.
It is necessary to look after your health, both mental and physical. Trading in the Forex market is especially very difficult from a psychological point of view. Traders have to experience severe psychological discomfort because of regular financial losses. Very few people are always able to stay calm and this is almost the top priority in trading. Therefore, trading on the stock exchange and Forex is only for those who are able to control their emotions and stay level-headed.
- The odds are against you.
More than 90% of beginner traders fail, according to the statistics of market. There are many reasons for this and they require a separate detailed consideration; however, facts are facts. Thus, you are likely to suffer losses even in the first few months.
- Lack of understanding from your social circle.
Unfortunately, even when you start earning money, you will regularly come across misunderstanding and criticism from others. That is how the human psyche works – people often criticize what is unfamiliar to them. Ultimately, the decision is yours to make; you just have to be well-informed to make the right one.