People make money through different ways. Most of us work a regular, sometimes boring job and earn steady income. Others make money through their own businesses. And there are also a small percentage of people who choose to profit from the financial trading business. Some of them trade stocks, futures, and some trade an even riskier instrument: Forex. For those of you who are interested in the idea of making money through Forex trading, the key question is: Is it possible to make a living off trading Forex? Can I just quit my job and trade Forex full time?
The answer is not a simple one. From my personal experiences, making money from trading Forex is NOT easy, and it is definitely not for everyone. You might have heard about the story of some traders who made millions and got rich through Forex market, but these cases are very rare. For average traders, most of them fail at the game. This is simply a fact.
Most people lose money in stock market. But trading Forex is a lot harder than trading stocks, because in Forex market you can trade with high leverages, which can be very hard to harness when you get greedy and lost your composure. Leverage is like a double-edged sward, it can amplify your winnings as well as your losses.
Like I mentioned above, making money from Forex market is already hard enough. If you want to consistently profit from it, like getting paid from a regular job, it’ll make the game even harder. When you want to earn a fix amount of money from Forex each day, week or month, you’ll put yourself under enormous amount of pressure, which can make you take unnecessary risks, change your trading habits and ruin your trades. Because NO ONE can beat the market each and everyday! That’s mission impossible.
So what’s my advice? Don’t try to make a living out of trading Forex alone. Diversify your income. Try to build multiple income streams for yourself. That way, even if you lose money from your bad trades at some point, your other income streams can still provide you with cash flow. I’ll talk about more on building multiple income streams in the future. So please stay tuned ; )