It is generally the case that when you first start trading the forex markets, you generally do so on a part time basis. In other words you still carry on in your normal line of employment, but you trade forex when you have some spare time, or when you have a day off. Many people make money this way, but then find that when they go full time it becomes a lot harder. So why is this?
Well there are a few different reasons. The first reason is simply because they are suddenly under a lot more pressure to make money when it is their full time occupation. The fact is that you need to put food on the table, pay your rent or mortgage payments and all your other bills, and you can only do this by making money from your forex trading.
This is a big difference because when you are trading part time, it doesn't really matter if you don't make any money on a particular day or week. Indeed even if you lose a little bit of money, it is not the end of world because you still have a wage coming in that will cover any losses.
This added pressure can result in bad trading decisions being made because you will often feel that you have to be in a position all the time in order to meet your profit targets. However in general it is more profitable to sit and wait for the very best set-ups to occur, even if you only get maybe one good trade per week.
It is also the case that trading from home can be quite a dull and boring existence. Whilst you can chat with other traders online, it can be really lonely. This loneliness and boredom can be detrimental to your trading because you may find yourself entering trades on the short term charts just for a bit of excitement. Sadly these rash trades will nearly always result in losses being made.
When you work from home you also find that you constantly have to justify to yourself and other people that you are doing the right thing. You may well feel that you are a really successful trader at times, but if you are still earning less than the average wage, then you may start feeling the pressure of being a self-employed forex trader.
All of which makes full time forex trading extremely difficult and this is the point. Whilst it can be quite easy trading the markets part time when there is a lot less pressure, doing it full time is another matter entirely. You are essentially living off your forex profits and this is a big responsibility, particularly when you bear in mind that the occasional losing run is inevitable.
Well there are a few different reasons. The first reason is simply because they are suddenly under a lot more pressure to make money when it is their full time occupation. The fact is that you need to put food on the table, pay your rent or mortgage payments and all your other bills, and you can only do this by making money from your forex trading.
This is a big difference because when you are trading part time, it doesn't really matter if you don't make any money on a particular day or week. Indeed even if you lose a little bit of money, it is not the end of world because you still have a wage coming in that will cover any losses.
This added pressure can result in bad trading decisions being made because you will often feel that you have to be in a position all the time in order to meet your profit targets. However in general it is more profitable to sit and wait for the very best set-ups to occur, even if you only get maybe one good trade per week.
It is also the case that trading from home can be quite a dull and boring existence. Whilst you can chat with other traders online, it can be really lonely. This loneliness and boredom can be detrimental to your trading because you may find yourself entering trades on the short term charts just for a bit of excitement. Sadly these rash trades will nearly always result in losses being made.
When you work from home you also find that you constantly have to justify to yourself and other people that you are doing the right thing. You may well feel that you are a really successful trader at times, but if you are still earning less than the average wage, then you may start feeling the pressure of being a self-employed forex trader.
All of which makes full time forex trading extremely difficult and this is the point. Whilst it can be quite easy trading the markets part time when there is a lot less pressure, doing it full time is another matter entirely. You are essentially living off your forex profits and this is a big responsibility, particularly when you bear in mind that the occasional losing run is inevitable.