As with all professions; with good, there has to come some bad. This post will take you through the far less glamorous side of Forex trading and the stress that comes with it! We will look at the main issues that traders face, including problems when trading your own personal account.
The short answer to the title question is that Forex trading can indeed make you a very successful living. However, the so-called "gurus" and coaches rarely mention the difficult side of the industry. Neither does the copious amounts of educational material on the internet.
Before we go into the details of the article, it is important to understand why we never hear or read about the stresses of Forex trading in forums and books and indeed courses that we may have purchased.
Why We Never Hear about the Stresses of Forex Trading
The reason is two-fold. Firstly, it doesn’t pay to put your customers off from buying your products. Secondly, most of those teaching have never actually traded in a professional capacity. I believe it is very important to understand every aspect of the business before fully committing yourself to it.
The most common dream of a new Forex trader is to go online, read a book and then become fully self-sufficient; to trade their own account and make a consistent living from home.
The reality is far different.
Imagine having guaranteed bills and obligations but no guaranteed income. This is the exact scenario that drives people into full-time employment in the first place. The risks associated with self-employment are the exact same risks that a Forex trader faces when going it alone.
The difference is that Forex trading is usually a completely new industry. And how much money you make from trading is completely out of your sphere of influence.
When this is circling around in the back of your mind and you have just had a few bad days trading, it can very quickly become extremely stressful. Because at the end of the month, you still have to pay your bills.
A common scenario is having a negative month trading; having to use some of your trading capital to survive and then having to take more risk on what is left to make money in the future. This is just one of many situations which will lead to even bigger losses.
This level of stress can wreck havoc with your life. It is not to be taken lightly and should be accounted for well in advance of quitting your job and trading full-time.
How to Avoid These Scenarios
First of all, NEVER just pluck profit forecasts out of thin air (it’s amazing how many traders do this). Only base your profit predictions on your past history that you have actually achieved on a trading account, by physically taking the trades.
Anything else, including back-testing, is absolute nonsense. It will hurt you in the long-run.
Secondly, ensure that you have a financial buffer in place that you can use to cover your costs without eating into your trading capital and without any draw-downs.
The minimum you need is enough to cover 6 months bills and living costs. The longer you can do without income the better.
Finally, work out how much capital you need based on your existing history. Do NOT use leverage to quickly grow your account!
Leverage (and the abuse of it) is one of the biggest killers of new traders. Avoid it
As a percentage, work out what your average profit is each month. Then, ensure you have enough capital to generate a figure that will support you without using leverage. The worst case scenario is that you will fail to make much and may even lose a bit instead. But with leverage, the worst case scenario is always so much worse.
These are simply ways to lessen the stress before you start, but if you find yourself in the saddle already and you are becoming more stressed, then take some time off. Get a change of scenery and stay away from your screens until you are yearning to get back and you are once again excited by the challenge.
Nothing is worth risking your health for, so make sure you follow the tips above to keep yourself as focused and stress-free as possible!
At no time should anyone view the information presented anywhere on this website as advice, recommendation or proven. Everything reflected is merely opinion and may not be accurate. The purpose of the site is to express the opinions and views of Jarratt Davis. There is no intention to offer specific help, advice or suggestions to anyone reading any of the content posted here.
Editors’ Picks
EUR/USD gathers strength above 1.1750 as Fed rate cut prospects pressure US Dollar
The EUR/USD pair trades in positive territory around 1.1775 during the early Asian session on Monday. The prospect of a US Federal Reserve rate cut in 2026 weighs on the US Dollar against the Euro. Markets brace for US President Donald Trump to nominate a Fed chair to replace Jerome Powell, whose term ends in May.
GBP/USD edges lower near 0.7400, eyes Fed rate cut outlook
GBP/USD edges lower after a gap-up open, trading around 0.7410 during the Asian hours on Monday. However, the pair may gain ground as the US Dollar faces challenges, which could be attributed to growing expectations of two more rate cuts by the Federal Reserve in 2026.
USD/JPY jumps off 156.00 amid BoJ Minutes, cautious optimism
USD/JPY is on a tepid recovery to near 156.50 in the Asian hours on Monday, having tested 156.00 earlier on. The pair came under moderate selling pressure after the Bank of Japan’s Summary of Opinions from the December policy meeting. However, the Japanese Yen gave in to a cautiously optimistic market mood, lifting the pair.
Editors’ Picks
AUD/USD holds above 0.6700 amid quiet markets heading into the year end
AUD/USD keeps its range above 0.6700 in Monday's Asian trading. The upbeat market mood and a broadly subdued US Dollar underpin the pair amid China's pro-growth fiscal support measures. The end-of-the-year flows and mid-tier US data will drive the AUDUSD price action going forward.
USD/JPY jumps off 156.00 amid BoJ Minutes, cautious optimism
USD/JPY is on a tepid recovery to near 156.50 in the Asian hours on Monday, having tested 156.00 earlier on. The pair came under moderate selling pressure after the Bank of Japan’s Summary of Opinions from the December policy meeting. However, the Japanese Yen gave in to a cautiously optimistic market mood, lifting the pair.
Gold retreats from record highs, heads toward $4,550
Gold retreats after setting a new record-high at $4,550 earlier in the Asian session on Monday and eases toward $4,500 as trading volumes thin out ahead of the New Year break. The US Dollar bearish bias remains unabated on the back of dovish Fed expectations, which continues to act as a tailwind for the bullion amid persistent geopolitical risks.
Ethereum Annual Price Forecast: ETH poised for growth in 2026 amid regulatory clarity and institutional adoption
Ethereum lost 12% of its value in 2025, declining from $3,336 at the beginning of the year to $2,930 as of the third week of December, a stark contrast from 2024's 48% gain. But that percentage doesn't do justice to the wild year ETH had in 2025.
Bitcoin Price Annual Forecast: BTC holds long-term bullish structure heading into 2026
Bitcoin (BTC) is wrapping up 2025 as one of its most eventful years, defined by unprecedented institutional participation, major regulatory developments, and extreme price volatility.
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