Have you been dabbling in the world of forex for a while and wondered if you can turn your hobby into a business? If so, you’re not alone.
Right now, there are 13.9 million online traders worldwide, with over 280,000 of that number based in the UK, making it a popular business opportunity for those who enjoy following the markets.
If you’re hoping to turn your hobby into a successful forex enterprise, read on.
A success story
Being successful is the thing that drives many financial traders. This makes sense, given that the stakes are high, and failure can cost millions.
One of the main attractions is the fast-paced, changeable nature of the industry. In fact, research carried out in 2015 found that traders make money most of the time as over half of trades close at a profit. Yet, various websites and financial reporters state that as many as 90% of forex traders lose money and quit as a result of these losses.
With stats like that, you’d think that people would be put off going into trading. However, if anything, more people are getting into this world because there are more opportunities than there were before. From trading tools and platforms to apps and guides, there are plenty of ways for you to make the move to the trading floor.
Learn the basics
If you’re new to forex, it’s worth spending some time with an expert to pick up the techniques that you’ll need for when you’re trading. You may have an analytical mind, but to take your interest in the markets to the next level, you’ll need to have a firm grasp of technical analysis.
Additionally, get to grips with the industry. Do this by attending webinars or tutorials, as these will include up-to-the-minute information and help you to build your knowledge.
Have a plan
As with any business venture, you need to have a plan. You’ve learned the basics, but to turn these learnings into a business, work out what you need to do to begin trading as a job role.
Decide at this point which broker you’ll go with. Look around and weigh up your options before you commit. One way to do this is to choose a broker that hosts a demo account, where you can get acquainted with how the platform operates. This will give you a chance to come up with a strategy for your forex business as you’ll be able to get a feel for the broker that suits you.
Don’t jump in and trade with real money too soon. Train up so that you are well placed to time your trading accurately. Do this by sticking with your preferred demo platform for a few weeks until you feel you have a firm grasp of the markets and strategies.
Think like a business
When you’re ready, open a live trading account. This will be different from dabbling in trading at home, so you’ll need to think like you’re running a business. Be professional and treat it like a job – because it is a job for you now.