Everyone is living in their own life struggling to fulfill their dreams. Some work hard and get close to their dreams. However, for some the road to a successful life is bumpy.
There is no doubt that you will have to work hard to achieve all that you desire in life. There is no shortcut to success and wealth. However, there can be a more profitable alternative.
When you are putting all your effort into something, always ensure that the outcome is worth it. Forex trading is one such way where you can get maximum results from your efforts.
People often treat Forex trading as a shortcut to making quick money. They are unaware of the skill, intelligence and hard work you have to invest to make money.
Forex trading can be your door to wealthy and successful life if you have the talent and market skills. It requires time, patience, concentration, dedication and hard work but considering the good returns the effort is all worth it.
Why Go For Forex Trading?
Can you make a living by Forex trading?
Yes! You can. You will be surprised to know that people even take up full-time trading.
New traders often wonder if Forex trading can generate regular income for you. The simple answer to this question is YES. The majority of the traders fail to make a consistent profit out of trades.
This is because they do not seriously take into consideration the commitment it requires. If you are ready to commit and work hard then trading can be a boon for you.
Forex trading is the world’s largest financial market. It is even larger than the stock market. According to the Triennial Central Bank Survey of FX and OTC markets in 2019, the total Forex market’s daily volume is $6.6 trillion.
It is a vast market that consists of commercial banks, institutions, money managers, central banks and hedge funds. Retail traders that are individuals like us form a very small part of the trading. Individual traders form only 5.5% of the total Forex market.
We all work hard in our life, whether you are sitting in a high position or in a lower-level office. However, only one source of income cannot help you realize your dreams. Forex trading can be your 2nd source of income where you will be working for yourself.
The amount of hard work you will put in building your portfolio will go towards benefiting only you and not your superior or company.
So how can you make Forex trading your consistent source of income?
How To Become A Professional Trader?
People don’t spend enough time and patience when it comes to trading. You need to have a disciplined strategy, mindset and realistic goals to make your trades profitable.
You don’t need to run after money. your primary goal should be making good trades. When you invest in good trades, money will automatically follow.
To be a good trader you will have to do many things right for a very long time with patience.
Here is how you can become a pro trader by following a few simple rules.
Make A Trading Routine
Why do you think athletes and sportsmen succeed?
It is because of their strict discipline and routine they follow in their life. Similarly, traders need to have a routine that will help them to create plans and work on them accordingly. This minimizes the risks and maximizes the outcomes.
Making a trading routine is as simple as making a study plan. Here is how you can do it.
You need to analyze your level of understanding of the trading market.
Find out where you lack and where your strategies should focus.
Moreover, you need to write down clearly your goals and expectations from this trading.
Always ensure that you have realistic goals. You can’t dream of making millions in a few nights of trading.
After you have your goals clear and know where you lack you need to have a sound knowledge of the trading market.
Unless you have in-depth knowledge about the currencies and market you can’t make the right plan.
Create a profitable trading system that includes risk management.
Make advance backup plans that will help you to adapt to the changing market conditions.
Make a progress report to track your trades, profits and loss.
Have a positive mindset towards your obstacles and take your winning trades as small stepping stones to success.
Keep upgrading and upskilling yourself to improve your trading skills and market understandings.
As a new trader, you must start small. Analyze your savings and assets to find out how much risk you can take.
When it comes to determining your capital you need to have realistic goals. If your goals are exaggerated you will risk your money without proper plans. This is because to make a proper plan you will need to have a defined goal.
Follow these steps to calculate your trading capital.
Step 1: Determine how much money you want to make from trading each year.
Step 2: Establish a fair return expectation. 15-25 percent every year for a very skilled trader – remember, if you’re new to trading, this is unlikely to be you just yet.
Step 3: Desired income / return % = capital required. So, if your goal return is Rs.5,000 per year and your expected return is 20%, you’ll need Rs.25,000 in capital to get there (5000/0.2=25000).
Get The Right Approach And Tool
Once you have proper knowledge of Forex trading you will need to have the right approach with the right tools. You will need software, trading tools and trusted market news sources to build your strategy.
We at VFM Brokers help you make profitable trading with our customized tailor-made trading strategies.
“The goal of a successful trader is to make the best trades, money is secondary.”
If you want to be a part-time or full-time trader you must always focus on building a diverse portfolio with good trades.
Interested in how trading can make you rich? Read here.
Our trading experts are on Whatsapp to provide you with instant trading help.