Do You Want To Trade For a Living?

I received an email this week from a guy in England. He asked me if he could trade professionally and give up his day job.  Moving from a secure (relatively anyway) job with a set paycheck each month to the uncertainty of professional trading is a hard transition to make. My response to him was that you must have a trading account large enough to so that you can generate a conservative return on your money while still following proper money management rules.

This means you can’t trade for a living with a $10,000 account.  But what you can do is start building up your small trading account so that one day you CAN trade for a living!

The next thing I suggested is that you must have an absolute minimum of 6 months of savings as a safety net. The reason is this; as soon as you need to trade for a living, the increased stress it puts on you to make money to pay your bills tends to cause trading more erratic trading than does trading for passive income.  The way to be successful at trading is not to make it about money but make it about following the rules, your trading method and your setups.  If you do this the money will come. If you think about making it about money first you will always be chasing the money and this will lead to mistakes, frustration and more than likely failure.

Make it about the trading plan and setups, then the results will speak for themselves and the money will follow.

By |2015-11-04T22:53:26-06:00October 22nd, 2012|Forex Risk Management, Phil's Forex Blog|0 Comments