Most forex traders do it while having a day job, some trade during their free time, and some do it when the boss isn’t looking. And some think or dream of quitting their job and going pro – making a living out of forex trading.
When can this be done? Here are 5 important points:
- At least a year of profitable trading: In order to evaluate if you have the basis for trading forex as a profession, a full year of successful “internship” is necessary. During the course of a year, you’ve seen many different phenomenons in the markets. This is minimal experience.
- Significant income for three months: Are you already making a significant monthly income from trading? Significant means that it pays the rent or mortgage, covers a big savings plan or is a sizable portion of your overall income.
- Plan for scaling up: Making a significant sum from trading is great, but can you scale it up to making a living? How? Take the time to make a plan on how your trading routine will be – your timetable is different when you don’t have a day job. The free time needs to be successfully utilized from day one.
- Deep pockets. In deep pockets, I don’t mean being need to be rich. If you would be rich, you wouldn’t need any trading, would you? I mean that you can continue your life as usual for some time with your current income from forex. Given that you don’t scale quickly, you’ll need money to cushion your expenses. The more money you have, the more patience you’ll have with full time trading, the greater chance you’ll have to succeed.
- Plan B: Following the previous point, you need a Plan B in case it doesn’t work out. This could be returning to your previous job, pursuing another path, etc. If you know the worst case scenario, you’ll clear out the uncertainty and you’ll have a better chance to succeed.
What do you think? Any pro forex trader out there with a good tip?
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26 Comments
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You forgot another point tipical of a pro– One doesnt go around writing crap on the net about when to go pro!!!
Some good points – it’s quite a way off for me. 🙂
But yeah you definitely don’t want to quit work, and suddenly have to rely on making $x each and every month, you’d need a fairly big cushion.
How long you’ve traded and what you think you know AND account balance are not in any way good indicators on when it is time to go, “pro.”
The only indication you need is that you have developed a definable edge that you can execute over and over.
A definable edge would be any method you use. But, it has to be proven over a large sampe size of trades (100 at least) that you win X out of X times and win or lose X amount.
(Statisticall you win more trades than you lose and your winners outstrips your losses)
When the X factor is proven as repeatable all you have to do is add money managment and compound at reasonable levels and you can go, “pro.”
That is the only pro, “secret.”
No matter how many years you trade or how much you trade there won’t come a magical time when you are such a knowledgable wise trader that you can predict where price will go or never lose trades.
So, years of trading and anything you’ve learned about market behavior are no indication of a good time to go pro. If you don’t have an edge you don’t have squat.
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This is really good advice to new traders!
When I was learning how to trade, I had this plan that I’ll quit my job as soon as I start a real account. That plan soon faded away when I realize that my losses most times out-weighted profits. I am therefore in support of the 5 pieces of advice and the comment by Ric. Good fellows!
But be it as it may, I think if one is able to successfully develop an Expert Advisor/Trading Robot that is capable of making profitable trades automatically then you are a pro.
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I will like to state for the record that going pro is not as easy as it may seem but I must confess Ric has a good point there, you must be able to out weigh your losses with your wins consistently and repeatedly, if not you are no where near ‘pro’. Having good funds will pay off big time, that way you will appreciate the returns. Another good point is money management, one needs to have a proper money management scheme to succeed and it will go a long way in helping you. After all said and done, going pro is no easy feat.
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6. Your average monthly profits are 2x the gross paycheck from your day job.
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Good points. Although what I’ve learned is that people always look for an easy way out. Always. If you are truly called to trade then quit your job and go for it. Especially if your in a job that you hate. I find that many times people who stay at their day jobs lack the true motivation to really pursue trading. My email is on gmail and it’s benbrown1212. Thanks
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I think consistency is key and this comes with practice, in my opinion.
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This article on when to go live with a regular trading account is surely one of the best pieces of qualified info on the web.
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Looks good plan. I would include joining trading community or network. Plenty of training and putting trade stratigies are essential before reaching this stage also.
Thanks, great points
Very well said, its not an overnight endeavor, slow and steady wins the race
Exactly