These days, remote work no longer feels like an extraordinary activity: it seems to be the norm. More and more people are looking for ways to earn income from their homes.
Crypto, Stocks, and Forex are the new businesses people are interested in when it comes to looking for new sources of income. The question is obviously: can you really make a living trading Forex in 2022?
The short answer is yes. However, as with any new field, there are many new concepts that can intimidate even the bravest beginners like swing trading or split stocks, but that shouldn't put you off trying it. We insist: yes, you can make a living trading Forex, and here's why:
What do you need before trading Forex?
If you want to become a Forex trader and take the risk on yourself, the first barrier to entry is having the capital to invest and trade. All you need is a good internet connection and a computer, and you're good to go. Find a broker and a trading platform and you are set.
The barriers are higher if you want to get a job as a professional trader and earn a salary rather than take the personal risk. You'll likely need a degree in finance, accounting, or business, and you'll also have a good brain and temperament to solve problems and analyze data. Having experience or some familiarity with Forex and financial markets will also give you great support. Entering Forex is not something that should be impulsive, so think carefully and only make a decision after careful consideration.
What about risk and expectations?
If you want to get rich immediately, as a Forex broker, with little to no effort, then Forex Trading may not be the place for you. The first thing you need to do is manage your own expectations while having a good grip on reality:
– Forex trading is a full-time activity, so don't expect to approach it as a hobby or a part-time business. – Do not invest with funds from money already dedicated to covering your basic needs. – Be patient, as it may take longer than expected for your first trading successes to occur. – Leveraged trading can indeed make you a millionaire, but keep in mind that it can also land you in serious debt.
Learning about risk management is essential before you start, so here are some basics about it:
– Understand how to use a stop loss as a damage limitation technique – Don't risk what you can't afford to lose – Avoid leverage at all costs as a beginner – Choose a strategy and stick to it – Mentally Prepare for the Worst Case Scenario
How much can you earn in a year?
This is the most obvious question, but it is also the most difficult answer. This fact does not only depend on your education, it also includes the nature of the market, the type of strategies you devise, and the quality of reaction to unforeseen scenarios.
You also need to consider market volatility. If you are doing well on a particular day, that doesn't mean it will happen again the next day, so if you are used to earning a stable salary, then becoming a freelance trader might not be the right fit for you.