For forex traders, nothing embodies freedom more than those who trade full-time. After all, full-time traders enjoy freedom from their box-type offices, freedom of time, and freedom to choose which trading opportunities to take.

Unfortunately, this brand of independence isn’t for everyone. Just like too much freedom can do more harm than good for some economies, not all traders are ready to trade full-time.

So how do you know when you’re ready for full-time trading? From what we’ve seen from online forex communities, we can narrow it down to four signs:
 

1. You have enough capital

Trading full time means that you’ll be quitting your job, your primary source of income. And, because you’re realistic, you know that you probably won’t be making any serious trading money in your first few months.

Now imagine months of not getting salary and not making profits while STILL having to pay for your food, rent, utilities, and Netflix and Hulu subscriptions. Can’t live without your salary yet? Can’t afford to take big drawdowns for weeks and still maintain your lifestyle? Don’t trade full-time.
 

2. You have tried and tested other methods and strategies

Traders say that full-time trading just means that you’re a part-time trader and a full-time backtester. In a way, this is true.

Full-time traders know that you can’t make your living off of one good strategy alone. Not only do you need to have a strategy that has proven to be profitable for you, but you also have to have other equally qualified methods that would work for other trading conditions. After all, you never know when and for how long the market trends will shift!
 

3. You have spent a considerable amount of time trading LIVE.

Just like how doctors, lawyers, and pilots have simulations and internship programs before they do their jobs round the clock, traders should also spend a considerable amount of time trading live before trading full-time.

Trading a live account brings forth trading psychology hurdles that you wouldn’t get from trading demo accounts. In addition, you have to have a fairly good grasp of your trading strengths and weaknesses, and, more importantly, you should know how to stick to a trading plan before you make trading your full-time job. Make sure you’re mentally prepared to risk real money and maintain your trading strengths before you trade full-time!
 

4. Forex trading is your passion

Trading currencies is what motivates you to get up and get busy every morning. If you’d rather trade the RBA statement than watch the NBA finals or visit the PBoC’s economic calendar than the Great Wall of China, then do yourself a favor and trade full time. No sense in not doing what you love, right?

Remember that while full-time trading would provide you more opportunities to catch market movements, you don’t need to be a full-time trader to be consistently profitable. In fact, I know of part-time traders in the BabyPips.com community that are better than some full-time traders! In the end though, it just boils down to how much money, time, and effort you’re willing invest in your forex trading education and career.


 

BabyPips.com does not warrant or guarantee the accuracy, timeliness or completeness to its service or information it provides. BabyPips.com does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading at their own risk and BabyPips.com shall not be responsible under any circumstances for the consequences of such activities. Babypips.com and its affiliates will not, in any event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.

Education feed

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 

EUR/USD News

GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 

GBP/USD News

USD/JPY retreats from highs amid coroanvirus fears

USD/JPY has fallen from 112 as coronavirus fears trigger safe-haven flows into the yen. Investors are shrugging off disappointing Japanese figures.

USD/JPY News

Editors’ Picks

EUR/USD rebounds after dismal US PMIs

EUR/USD is trading closer to 1.0850, rising in response to weak US PMIs, with the services one pointing to contraction. Earlier, German Manufacturing PMI beat estimates. 

EUR/USD News

GBP/USD advances to 1.2950 after US data

GBP/USD is trading around 1.2950, taking advantage of US weakness stemming from a downfall in Markit's Services PMI in the US. In Britain, the Manufacturing PMI exceeded estimates. 

GBP/USD News

USD/JPY retreats from highs amid coroanvirus fears

USD/JPY has fallen from 112 as coronavirus fears trigger safe-haven flows into the yen. Investors are shrugging off disappointing Japanese figures.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Consolidation process underway

The Crypto board continues to be immersed in an emotional leg-breaking, consistently punishing the emotional state of the traders with its continuous changes of direction.

Read more

XAU/USD unstoppable, breaks to fresh 2020 highs, approaching $1650/oz

XAU/USD is trading in an uptrend above its main daily simple moving averages (SMAs) while breaking above a bull channel. Gold is printing fresh 2020 highs hitting $1646.64 per ounce on an intraday basis.  

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology