So FOREX trading vs. full time jobs…The dreamy idea of practicing full time FOREX trading for a living is not that easy as it sounds. It is the idea of freedom associated with it that so many regular employees such as marketing managers think they can easily transition to it. Those who think they have a bit of knowledge in foreign exchange or who think that their common knowledge in trading will be able to carry them through, ought to reconsider being a full time FOREX trader. Trading full time is a very challenging niche job to opt for when compared to IT jobs, marketing management, social work, engineering, or even an investment banking position. Why is FOREX trading so hard in the long term and why a full-time career might be the better option for 95% of us…

The best thing about common careers is that you can go to a university, study hard, read specialised literature on the subject, and in time earn a degree or a diploma. There is a lot of information out there ranging from a profession’s history to its direction and current developments. Everything is well documented. In a way, to get to the top of such professions there is already a ladder set up for your success, and all you have to do is move forward. This is not really the case for a FOREX trader. Sure, there are articles and books to read about it but the subject is so diverse and dynamic. It is constantly changing according to so many unforeseen factors, that whatever information you may read about now may be history in minutes. Even unlike investment banking that also relies heavily on trading, FOREX trading is so much more unpredictable. While trading in stocks may be profitable as long as the economy is stable or not in a recession mode, chances are that the money you invested on stocks could go either way. Investment bankers are likely to earn no matter what happens with the economy. IT professionals are going to make money when they write a line of code or fix an IT bug. In this regard, FOREX trading is more unpredictable, since there is no fixed model of how to make money.

In FOREX trading, however, too much of the action depends on external factors. This practically refers to things that are outside our control and fall so much more on experience. Clearly, this is opposite to the environment of other professions like in IT, marketing management, social work, or engineering. These are clearly structured jobs, and the same goes with investment banking jobs. Companies you choose to invest in have financial statements to analyze, and there is a lot of data, which could help a trader arrive at an intelligent decision. Company portfolios, spreadsheets, financial data, etc. all these can be studied as referenced in investment banking literature. Therefore, it is more structured, too, when compared to FOREX trading. The latter doesn’t simply follow reason and is practically impossible to predict. It can be counter-intuitive at times. In fact, being able to think outside the box could be your biggest edge in trading! The term “control” over your trade is out of the question in FOREX trading.

While the other five job types aforementioned proceed on a regular pathway, FOREX trading is more of a gamble. Career-wise, you really would not know what to expect even in the near future when trading. What you need to do is just read the market. In FOREX trading you can make a fortune as you can lose your house in the blink of an eye. For the unprepared trader, this career path might not be the best option. You could consider trading only as a hobby. It is not necessary to jump into this field even if you feel well-prepared. I do try to warn newbies and experienced traders alike against the dangers of trading. This can help you choose a more consistent career as an IT consultant or another full-time professional. In the meantime, if you choose to be a full-time trader, you will need to equip yourself with a lot of patience.

Being an IT Professional requires a high level of technical knowledge. It is not something you may just do if you don’t have any previous experience. It may take a long time to learn, but at least there is a lot of available data out there to study from. The same goes with engineering, and you have board exams to tackle first. It is undoubtedly a challenging profession, too, but at least there are so many sources and mentors to learn from. FOREX trading, on the other hand, does not have a fixed model where a trader can study clear fundamentals. Unlike in other professions where you can learn from case studies, FOREX trading is highly dependent on practical experience and even then does not mean one could be successful. What makes it even tougher is that there is a strong influence of politics, economics and black swan events in all markets. All these factors could change anytime. And even if the economy seems to be doing well for the time being, this does not mean that a banking intervention or an economic event won’t shake things up. Profitable trading is probably one of the toughest jobs in the world. Probably 95% of traders are losing money. And if that is not enough- successful traders take on average 10,000 hours to hone the skill.

Perhaps the toughest part of being a FOREX trader as compared to other jobs like in marketing management, social work, IT or engineering is that the income does not come on a regular basis. In fact, some would argue that you could lose more in the long run just like in gambling. It is not financially stable in the sense that you could lose so much in little time. When that happens it makes you wish you had a monthly pay slip instead. But is that really how you have imagined your life? What about the challenging element or the desire to win? What about honing your patience and becoming part of the 5% club that are enjoying the best lifestyle on earth a profession can give you… Is it worth the sweat and the long hours in front of the screen? You are the one taking the ultimate decision…


This material is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever. Trading and Investing involves high levels of risk. The author expresses personal opinions and will not assume any responsibility whatsoever for the actions of the reader. The author may or may not have positions in Financial Instruments discussed in this newsletter. Future results can be dramatically different from the opinions expressed herein. Past performance does not guarantee future results.

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EUR/USD steadies above 1.0350 as Trump's tariffs and US CPI awaited

EUR/USD remains steady above 1.0350 in the European trading hours on Wednesday. The pair trades with caution as US President Trump’s plans of reciprocal tariffs through executive action, bypassing Congress, keep the US Dollar underpinned ahead of the US inflation report. 

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Editors’ Picks

EUR/USD steadies above 1.0350 as Trump's tariffs and US CPI awaited

EUR/USD steadies above 1.0350 as Trump's tariffs and US CPI awaited

EUR/USD remains steady above 1.0350 in the European trading hours on Wednesday. The pair trades with caution as US President Trump’s plans of reciprocal tariffs through executive action, bypassing Congress, keep the US Dollar underpinned ahead of the US inflation report. 

EUR/USD News
GBP/USD holds gains near 1.2450 ahead of US inflation data

GBP/USD holds gains near 1.2450 ahead of US inflation data

GBP/USD clings to recovery gains near 1.2450 in the European session on Wednesday. The pair capitalizes on a slight positive shift in risk sentiment but broad US Dollar strength and market's nervounsess ahead of US CPI data could cap gains while awaiting Trump's reciprocal tariffs. 

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Gold challenges critical support ahead of US CPI inflation test

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Gold price consolidates the previous pullback from record highs of $2,943, struggling below $2,900 early Wednesday. All eyes now remain on the high-impact US Consumer Price Index data due later in the day for fresh directional impetus in Gold price.

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CPI Data to reveal US inflation holding firm in January, with Fed’s target still out of reach

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The Consumer Price Index is expected to show an annual increase of 2.9% in January—matching the previous month’s reading. The core CPI is predicted to still remain above the Fed’s target at 3.1% compared to a year ago.

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Global stock markets brushed off tariff fears on Monday, however, as 25% levies on imports of steel and aluminum came into force late Monday night, which included steel and aluminum finished products, futures markets started to decline, and the S&P 500 along with the Eurostoxx 50 index are expected to open lower today as a tone of caution impacts financial markets.

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