My name is Sam Morton, I am an independent Forex trader. I have been trading Forex for nearly 7 years. I love what I do. My career has been very rewarding. It has allowed me to earn a decent living and has allowed my to work from home.
The purpose of this post is to outline the steps you need to take to become a full-time Forex trader and also let you know of some aspects of Forex trading you need to consider before committing to trading Forex as your main career. I have been there and done it. I consider myself an expert in this field - please give special attention to my advice.
Step #1 - Learn as much as you can (for free)
Believe it or not, you can learn a lot about Forex trading and how to trade Forex for free. There are countless websites and YouTube channels that offer free courses, free blog posts and free training on learning how to trade Forex. There are not many careers that require no qualifications and no payment for formal training but becoming an independent Forex trader is one of them. It does not matter who you are or what your background is, you have the potential to become a Forex trader!
The best thing about free online content is that you can learn in your own time. No matter if you are a student, employed or self-employed, you can learn in your spare time and go at your own pace. By browsing the web, you will be able to learn the basics of the Forex market, the basics of chart analysis, the basics of Forex brokers and how to profit from the market. To help you along the way, here are some sites that may help you...
Technical Forex - www.techncialforex.com - their free Forex 101 courses are perfect for beginners. They also have a trading Forum and other features that you may find useful.
BabyPips - www.babypips.com - another site that offers free courses and a free forum
My YouTube Channel - www.youtube.com/user/lovethepips - I have a range of basic trading videos to more advanced content. Perhaps start by checking-out my free Forex videos page.
Note: If you would prefer purchasing and reading Forex books to online content, Amazon UK and Amazon US have a wide selection of Forex trading books for beginners. Perhaps try eBay if money is tight.
Step #2 - Trade demo. Only demo
A demo or paper trading account allows a Forex trader to analyse charts and place trades as if he or she was actually trading. The money is virtual though - all losses and wins are imaginary/practice.
One of the most regretted mistakes made by Forex traders is that they decided to open a live trading account and fund it far too early. Don't do this. Listen to my words, you will lose your money. There is no rush. If you do not have the patience to trade a demo account for a season, you will not have sufficient patience to make it as a full-time Forex trader.
Once you have a demo account, you can practice what you have learned. Use your time with your demo account to learn how to execute trades, analyse charts, watch how markets react to news events and learn from mistakes.
The following brokers offer free demo accounts for aspiring Forex traders...
Darwinex - click here - for all traders outside the US. I personally use this broker and highly recommend them.
IC Markets - click here - for all traders outside the US. I personally use this broker and highly recommend them.
Forest Park - click here - for all traders inside the US.
Step #3 - You need to develop a trading strategy
Once you have gained some experience and feel more comfortable analysing charts and making trading decisions, you need to develop a trading strategy and a set of trading rules (trading plan).
A trading strategy and trading plan will give you an edge. Trading is very much a numbers game. You win by leaning chance in your favour. Trading strategies can be based on price charts, technical indicators, news events and other aspects of the Forex markets. All successful traders have a trading plan and a trading strategy. A trading plan gives direction to managing your capital and ensuring that you are not taking too much risk.
My trading strategies and plans all came with experience. With time you will notice things that repeat themselves in the markets. You will notice money-making opportunities. These things need recording and compiling into a set of guidelines for trading Forex.
Step 3 is where most traders start to struggle. If you need help developing a trading strategy or with any other aspect of trading, please consider the following...
My Forex Mentor Program - learn from me directly. The programs consists of 6 online training sessions with me. The aim of the program is to make you a profitable and self-reliant Forex trader. You will also receive access to my course.
My Advanced Trading Course - learn my personal trading strategies and how I profit from the Forex market.
Step #4 - Start-off small
Once you have a trading strategy and trading plan, I suggest you then start trading with real funds. You will need to start with just a small amount of capital though. You will likely make mistakes - going from a demo account to a live account is a steep learning curve - but it is best to make mistakes with a small amount of capital rather than with your hard-earned savings!
Things to consider
Have a 2nd income
You will earn so much more if you can re-invest profits (compound trading). You will need to keep some profit in your account as a buffer against losing trades anyway. It would not be wise to draw all your profit each month. You will also have months where you will make no profit. You will have good months, mediocre months and bad months. Until you have a large trading account, Forex trading will not provide an income like a salary.
I strongly suggest you have or create another source of income so that you are not solely reliant on your trading income only. If you don't, the pressure will be too much and with a smaller-sized account it is just not practical. Why do you think so many Forex traders offer training and run trading related businesses?!
Forex trading will not allow you to get-rich-quick
Too many traders have unrealistic expectations. Forex trading will not provide 100% returns each month. Some of the best Forex traders in the industry gain anywhere from 20-80% per year.
Don't allow this to put you off though. Once you can make a consistent return and are a profitable Forex trader, many options will be available to you. You may have the chance to trade with investor capital, add to your own capital or even trade for a hedge or proprietary fund.
Don't let a lack of capital get you down. Focus on becoming profitable first and then focus on how to expand your capital from there. Having a large amount of capital is not a prerequisite to become a Forex trader.
You will receive criticism
If you choose to be public with your trading ideas and your Forex trading in general, you will receive criticism. Internet trolls and other viewers will put you down and call you a scam. Unfortunately, this is part of any industry when dealing with the public (especially online). Just a thought.
Trade to live, don't live to trade
Don't make my mistake. I love trading and being a Forex trader but I do feel that perhaps I have taken it a little too far and may need to reign myself in a bit. There is a lot of enjoyment in keeping trading simple i.e you trade by yourself, for yourself, in your own time. In recent years, my trading career has really grown. Until recently, I managed numerous trading accounts and a trading room, whilst also being a Forex technical analyst for a Forex broker and having my own personal trading account. Most people trade because of the freedom it provides. If you are not careful, trading may glue you to your office desk and try to take over your life! Please don't misunderstand me, I love what I do and am always looking for new students and the opportunity to grow love-the-pips. Just don't get to the point where you are no longer working toward your Forex trading vision.
I hope this helps!
lovethepips - (YouTube)