In Singapore, many people are trying out their hand on forex trading putting the country among the top three largest forex trading countries in the world. Some of the traders trade in FX to boost their income while others depend on it solely as their means to an end. With the popularity growing every day, it shows that there is something good about forex trading that people like.
When you read through online views from forex traders, or listen to them, you will want to get into the market almost immediately. The trading market to newcomers looks colourful which is understandable due to the many success stories. Even with all the success stories, is forex trading good enough to make a living out of its proceeds?
The answer to the above question is yes, you can make a comfortable income out of forex trading to boost your living. This will however depend on several factors one which includes your choice of the trading platform. One of the reasons for the trading success in Singapore is because the country also has some of the best forex trading platforms such as Saxo Singapore, which boasts of a rich satisfied clientele and offices in 15 other countries.
How to make a living out of forex trading
Forex trading is not as easy as some people try to make it sound. It is also not as hard as others make it appear. Everything you do in forex trading depends entirely on how much you understand the intricate details of the market and the risks the trading involves. The road to making a successful living out of forex trading will include the following factors.
Create a workable routine for trading
For any venture to succeed you, need to have an airtight routine in place. Forex trading is no exception and you should go at it with the mind of a professional trader. Maintaining a regular routine brings about discipline in your trading activities because forex trading requires the adoption of a positive mindset. A routine allows you to plan trades and plans for less trading mistakes.
A trading routine will largely depend on how well you understand the trading and currency markets. You also need to know and recognise things about you that make you who you are. These are things such as follow-through, patience and discipline. A routine also includes learning about the risks involved and how to manage the same risks. Lastly, a routine is adapting to the trading strategies in the market, tracking, and monitoring all the progress using a journal.
Set some money aside as your starting capital
The good thing with forex trading is that you do not have to start very high and there is no set amount to begin trading. You can start with as low as $150 though you should not expect much gain with such a low capital. You can start as part time trader, meaning there is something else you are doing as your main source of income.
Starting as a part time trader requires less capital as that of a full time trader. Starting small also helps you to test the waters and decide whether you want to continue or count your losses and leave. It also helps you to develop your trading plan and strategy and to build your trading confidence.
Starting small and with little capital also has less attachment emotionally as you still have something else to fall back to if things do not well. If you are new in the business of trading, the best option would be to trade through an expert. While at it, you also need to learn the role the central bank plays on forex trading.
Find out the average amount of money other traders make
Before you get into trading, ask around to learn how much other traders ask. Some of the stories are very inspiring that you may end up going at trading with your mind set on making profits only. You have to remember that not all traders are the same.
Some trade with large stating capital and make more gains while others are still struggling. Learn everything about their tolerance to risk, money and risk management skills and their trading experiences among many other things.
Wrapping it up
If you go into forex trading with the mind set on a get rich quick scheme, then you may not want to continue if things turn otherwise. Treat trading as just any other business that needs dedication, a flexible mind, never ending learning opportunities and practice. If you do everything right, then yes, you can turn forex trading into a major source of living.