How to make a living trading
How to make a living trading. Many novice traders are skeptical forex. Almost beginners thinking that it is difficult to trade for a living. Because many people given the statement of 90% of traders fail in forex trading.
Although many are skeptical, in fact, there are still many traders who still make forex trading as one of the ways they get money online. Especially now in the midst of a global pandemic that forces many people to work from home, forex is one way to get money from home.
You can run this business by sitting on a chair with a cup of coffee on your desk at home. If you imagine an enjoyment work from home with forex, your dream will arise.
Learn from professional traders who have spent their time to find trading for living formulas. Then How to make a living trading, well in this article I will provide motivation for you. Because after all the final results on each trader will be different from a variety of factors.
Warning, forex trading is risk trading, requires good skills with enough knowledge, not everyone is suitable for this business.
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Love trading as a business
If you are a man or woman, what do you do when you start to love someone? You will do anything for the sake of what you love. Giving favorite food, giving flowers, or calling him words of love.
In forex trading, too, if you love trading, then treat this as a business, don’t gamble. See how many of those who fail in forex are because they treat trading as gambling, they only rely on luck alone. Whereas luck is not always there. And that opportunity will get smaller when trading without having enough knowledge.
Trading is a business, don’t mess with trading if you don’t want to go bankrupt on a big-money scale. You must remember that at every tick the price of the move carries risk. That is the second risk, while the first risk is the spread cost. Please read about spreads if you don’t understand.
If you have just found forex trading, you first need to approach it, like when you first approached your first woman. Learn the basics of forex first, there are many educational resources that can be learned, you can use that to learn.
Read lots, because with that you will get new insights and can develop your love for trading with wider use.
Find a convenient and profitable trading method
Forex trading is not like any other business, it is very different from traditional trading in the market in general. High price volatility, sometimes forcing a trader to be willing to cut loss and or lose money by rising and falling prices.
First in trading is you have to find comfort in running this business. Therefore find a profitable and comfortable trading method.
How do you find profitable and comfortable trading methods?
For this purpose, you can freely use a demo account, learn one trading method, and apply it in demo trading. Because you love trading, do it patiently and sincerely. Spend time testing the trading method, and make sure you really master the trading method well.
If you have been able to prove the trading method in the trial giving profitable results, then you can proceed to the next step with a real account.
But how to be comfortable in trading?
In this case, it is about money management, you must understand how to calculate the position size that suits your risk management and trading style.
Remember that using a 1 lot position size will be different from 0.01 lots, you will feel more comfortable using 0.01 lots because each price change in one tick, your loss value is smaller than using 1 lot.
The convenience in trading will be obtained by using a low position size in trading.
Trading requires discipline
Maybe you have found a convenient and profitable trading method. But if in trading can not do all the rules of the trading method with discipline. So what happens is that the method you have found will not work effectively and there will be many defects in the results of your trade.
Discipline money management
Besides discipline on the rules of trading methods, discipline must also be taken care of money management. Money management is how you measure position size in each of your trades.
Although you have found a profitable trading method, if you cannot maintain money management discipline, At an unexpected time you will face a disaster. Never increase position size based only on your being too confident with your trading methods.
Discipline risk management
Profitable trading methods may not always work in all market conditions, here risk management is crucial to becoming a stronghold of traders. If a trader has set a risk limit in one trading plan of 2%. Then discipline with these limits is better than increasing the risk limit to a greater one.
A trader must be able to be realistic with the targets to be achieved in daily trading and risk limits that are ready to bear in one trade.
If you are unrealistic in a highly uncertain market, then you will tend to take risks that exceed your capital capacity, or you will over trade. In order to survive in the long run, you must adjust the position size to the size of the trading account. Adjust your expectations with reality in the market. A market full of uncertainties You must discipline to limit risk.
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Look education trading
Maybe after getting your first profit, it will appear in your mind to quit from the main job. That is rushed thinking. You have to look for trading education seriously, this is a risky business, without you equip yourself with the abilities that you can get through trading education.
As trader must understand every type of trading in the forex market. You can learn by reading ebooks, watching YouTube videos, and more.
Before you sacrifice large amounts of money, take advantage of demo accounts to practice applying the forex education that you have gained from the learning process. You must be sure you understand how the market works, what factors cause prices to change, who are the market participants who have an impact on market changes.
Create your routine trading schedule
Learn from professional traders, they have a scheduled time with a trading scheme that has become a habit every day. It is true that the forex market is open 24 hours, but you must choose a specific time for your trading schedule.
Full-time traders can do day trading as a basis for trading patterns. In this case, the London session will be the trader ‘s choice for short-term trading compared to other sessions.
Note that many people are successful because they do regular training, athletes, singers, even forex traders, they do regular and scheduled exercises. With scheduled trading times you can also limit total transactions by maximizing profits and minimizing losses. You can trade your plan and plan your trade.
How much capital to make living trading?
Now to be able to trade forex can only by spending $ 200, even $ 100 or $ 10, but do not expect if for living trading you only start that amount.
But here the trader’s profession consists of part-time traders and full-time traders. In this case, of course, part-time traders will be better able to start with lower capital. They can start with little capital to test the strategy without having to worry about going bankrupt if it turns out to have a failure. If you can make a constant profit, even if starting with low capital will significantly increase your money.
Unlike the full-time traders, they obviously rely on income only from the forex business, so their capital is far greater than part-time traders. Professional traders start with more than 100k dollars for living trading, their gain is low, for example, the target is only 2% per day, but it will contain a large value of money because it uses large capital.
Set aside some profit income
Forex is not a business model that can make you get rich quick, you need to set aside your income because in daily life also to meet the needs of food, clothing, electricity costs, and so on.
Set aside profits for these basic purposes and avoid debt because debt will fetter your life. Maintain the profits that you have earned. Do not act recklessly, remain disciplined with the rules of trade. profits that you set aside at any time are useful for your business.
Determine the right capital for your capacity
Before deciding to determine the amount of capital to be invested in forex trading. You have to be able to measure your capacity, have you been trading more profit, or are you still running stagnant?
If you have had a good track record for several years, then using large capital will increase your profits faster. But if your track record for several years is still running in place or stagnant, it’s better to spend capital that is not too big.
This is just in case if during trading you are facing poor performance due to the dynamic market. Every time you make a profit you should make a withdrawal until the total profit reaches the break-even point.
After the break-even point is reached, please think about compound profit or withdrawal, your first capital is safe in the bag. But it will be safer if you still maintain discipline with all your trading rules.
Take advantage of partnership programs from brokers
If your skills as a trader are qualified, getting profit from trading may be enough for living trading. But it never hurts if you join a broker partner through a partnership program.
You can introduce the broker you joined with, using the referral link provided by the broker. This will become your passive income if you succeed in recruiting more active traders through your referral link. Commissions from brokers will flow on every transaction made by clients under your link.
You can do promotions through advertising, or through social media such as Facebook, Twitter, LinkedIn, and others. If your skills are not as good as a trader, you can try this method because what is needed is a referral link promotion.
You can build a website for landing pages so that the promotion method becomes more attractive and looks professional.
Participate in demo contests trading
To achieve How to make a living trading, if you are a full-time trader. You can make several efforts as a way to get income in the forex industry.
Some brokers often hold demo trading contests with quite large prizes, if your skills have been tested and in the contest win the game. Then you will get a prize contest.
Depending on the broker’s policy, there are some rules that contest prizes are trading capital in real accounts, and there are also prize withdrawable contests. Before joining, you should read the terms and conditions so you don’t feel trapped in fraud.
Get motivation from successful traders
A trader has two sides of thought, when they fail, this can make a mental down, hopelessness, want to quit. This kind of condition is commonly found among traders.
Learn from successful traders, George Soros, Paul Tudor Jones, Stanley Druckenmiller, Andrew Krieger, Bill Lipschutz, and others. They are successful traders and reading their stories can motivate you who have disappeared from your soul.
You must have confidence that you too are a successful trader, only time is still delay and needs more process and progress.
Hold on to the wise words man jadda wa jada, whoever is serious he will succeed. So the motivation for success is to instill the mindset into the subconscious that you are a successful trader.
Then forex trading must be done seriously and failure is not an obstacle to not continuing the business. Reevaluate your mistakes and correct them.
How to make a living trading, requires dedication and enthusiasm in learning how to trade profitably. Mental preparation is also an important supporter of achieving living trading.
If you are mentally weak, give up easily, forex is not the best place for you. But if you have a strong mentality, don’t give up easily and always want to become a better trader, one day you can achieve living trading.
In all businesses, there must be a success, and there must also be a failure, not only trading, but in the property business there is also a success, and some fail stories.
So if you want to be successful, follow the ways of successful people, don’t follow the ways of people who fail.
Are you ready to start trading?
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