Is it possible to earn a decent living as a Forex trader? The short answer to the question is “yes.” For anyone who wants to begin the transition to a Forex-trading career, though, there are some important things to know about. For example, a few of the things every newcomer should be wondering about include:
- How much capital is needed to get started?
- What are the best platforms to use?
- What books do the best job of explaining the mechanics of Forex trading?
Websites like easyMarkets are an ideal place for those who want to break into a full-time career of trading Forex. They meet all the key requirements for those who want to use a trusted platform that has been around and offers complete research and educational resources, but before you decide to make Forex trading your main career, consider the following topics:
Think long and hard about how much capital you are able to risk as a new Forex trader. Don’t quit your day job, in other words. Some new traders like to spend at least 3-6 months getting their feet wet and simply learning how trades work. They usually try to get a feel for how to set buy-sell parameters and perhaps even work with automated trading bots.
There’s a lot to learn, and like any other profession, you need to give yourself several months of simulated trading and low-dollar trades to learn the ropes. It’s your money. Use it judiciously during your “training phase” and you’ll have a greater chance of long-term success as an independent Forex trader.
Unless you are an independently wealthy investor with money to burn, don’t make an instant transition into full-time Forex trading. Expect to spend time doing simulated trades before putting actual money at risk. Check out your platform’s minimum account requirements. Some of the better online trading sites allow you to open an account for a few hundred dollars or less.
Next, find out what the commission and fee structure is. Some are better than others and you don’t want to get involved with a platform that has a low minimum account requirement but high commissions. In the world of Forex trading, it pays to look before your leap.
Whatever platform you choose, make sure it offers you the ability to trade more than just a few Forex currency pairs. Many online trading platforms tend to cater to stock and bond traders and often just give a nod of recognition to Forex professionals. Before settling on which platform will be your “home base,” make sure it is Forex-centered and has lots of tools to make your job easier.
Platforms and Brokers
Most new traders use one of the respected online brokers. Fortunately, there are about a half-dozen that have been around for 15 years or more. But longevity is not enough. Some of the highly respected brokers aren’t geared for beginners or those with low-to-moderate financial resources. It is crucial for newcomers to locate trading providers that offer educational resources and the ability to do simulated buying and selling. Unless you want to spend a fortune hiring an in-person mentor, simulated online trading is the smartest way to go.