For many of us, we trade Forex because it offers us a chance of being free.
Free from that same mundane commute, to sit at the same desk cubicle and to listen to the same deadbeat boss telling you what to do all day.
Free from a confined salary that has zero prospects of scaling higher and being able to afford the endless bills from our expensive lifestyles.
When you’re in the midst of the daily grind, the idea of becoming a full time Forex trader has surely crossed your mind, but is it really the right decision?
In order to help you make the decision that’s right for you, we’ve analysed being a part time vs full time Forex trader below.
Remaining a Part Time Forex Trader
Becoming a full time Forex trader isn’t for everyone and you may be shocked to learn that part time Forex traders can make just as much money as their full time counterparts.
By keeping your current full time job and trading part time, you’re able to reduce the pressure to perform and possibly be more successful than a full time Forex trader.
Here are some considerations around remaining part time.
Trading Strategies for Each Session
The Forex market is tailor made for part time traders because no matter what timezone you choose to work, you’re able to create Forex strategies for each session.
People who work full time during business hours in their timezone, are able to trade during any of the other Forex sessions within a 24 hours day.
However, the trader’s fixed 8-hour trading day cannot be combined with your main job.
As a part time Forex trader, you’re able to build a trading strategy that takes advantage of market conditions within a specific market session, such as during the Asian session or more specifically the London Open.
Relieve the Pressure of Having to be Paid
We know that Forex trading brings with it an immense level of pressure and stress.
By trading Forex part time, it allows you to relieve the pressure of having to make money every single day of the week.
Unlike that paycheck from your full time job, the markets aren’t consistent.
Some days they may present you with an abundance of trading opportunities, while in others they don't.
By trading part time, you’re able to relieve the pressure of having to make money and can avoid forcing trades that just aren’t there.
Becoming a Full Time Forex Trader
If you’re committed to the idea of becoming a full time Forex trader and want to quit your job immediately, there’s a few things you need to consider.
Trading Forex full time is a high pressure job and once it becomes your only source of income, there is no margin for errors.
Here are some considerations around going full time.
Treat Forex Trading Like You’re a Business Owner
You’re going to have to change your mindset from just having a bit of fun, to becoming a full time business owner.
Obviously you don’t have any stock to sell or real estate to look after, but from a psychological point of view it’s exactly the same.
Your trading account is your entire business and you must do everything in your power to preserve your capital and keep the doors open.
Create a business plan, which in our case is a trading strategy with rules and risk management principles, to stick to.
Discipline yourself into working full time hours to execute your business plan and never allow yourself to make emotional decisions that could jeopardize your business.
Ensure That You Have Enough Capital
So often we see those transitioning into becoming a full time Forex trader fail, because they underestimate just how much capital they need to be successful.
While there’s no magic number that makes someone a full time Forex trader, it’s imperative that you separate your trading capital from the money you will use to pay yourself a salary.
Your trading capital is to remain untouched and should be used to derive your income from – And only from that should you allow yourself to withdraw.
If you don’t have enough money to sustain drawdowns or pay your bills while you’re not making money in the markets, then you’re not ready to be a full time Forex trader.
Be 100% certain you’re ready or you won’t succeed.
Prove your Trading Strategy Under All Market Conditions
There are no identical days in the Forex markets.
One day markets can be restricted into a tight range, while the next they’re moving with the momentum of a freight train in a single direction.
As a result, your trading strategy has to be able to perform under all market conditions and if it can’t, then you need a backup strategy that does.
Ensure you’ve not only back-tested your trading strategy before going full time, but forward tested by trading it on a live account.
Demo trading is not the same as trading any strategy on a live account!
Not to mention the immense trading psychology differences that are presented when real money is on the line and you still have bills to pay.
Ready to Become a Full Time Forex Trader?
Now that you’ve considered the big issues around being a part time vs full time Forex trader, you can make the decision that’s right for you.
If you’re ready to quit your job and become a full time Forex trader, then ensure you have the right tools and products at your disposal.
FXSSI has a wide range of professional MT4 indicators that can help you make the step up and position yourself ahead of the competition.
Make sure to explore our range of indicators, scripts and experts for the MT4 platform.