Why Should We Consider Forex Trading As A Real Career?

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Why Should We Consider Forex Trading As A Real Career?

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Have you ever consider Forex trading as a serious job with a real career?

Sometimes I still wonder why do people often use the saying “playing stock” or “playing forex”? Do they consider stock trading to be more like a game of chance? Winning is god giving, and losing is just gambling, isn’t it?

That’s why I am of no surprise that most traders lose their money, even a lot of money. Only 10-20% of the participants are winning (earning money).

One of the biggest mistakes of foreign exchange traders make is that they don’t consider it a serious business. Many people who I know even consider it a game of chance or a journey to the casino. Instead of staying calm and calculating carefully, they act like a moth to the flame of gambling.

Please don't see Forex trading as a game of gambling
Please don’t see Forex trading as a game of gambling

If you really want to succeed with Forex, you need to seriously consider it as a real trading career. Work properly, by the fact that Forex is exactly a top-notch business.

Like many other businesses out there, Forex has many “costs”. The goal of a trader like you and me is to bring in more revenue (winning orders) than the cost. That’s when we are profitable. If you leave these costs out of control, you will lose money. And with that, your Forex business will also go downhill (burn out your balance, lose all your money).

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What are the costs of the Forex market?

Your costs as a trader include lost orders, platform brokerage fees, and spreads for opening orders, computers, laptops, electronics, and office equipment, etc. No matter how hard you try to cut down or save, there are still things you must spend before thinking of making a profit. They are the biggest costs, especially from lost orders, for a trader.

What are the costs of the Forex market?
What are the costs of the Forex market?

Sadly, a lot of people think that trading is like a journey to the casino. They imagine perfect perspectives, where you always win with huge amounts of money. They should have thought about losing money before thinking of making money (risk management).

In fact, when you trade, you always encounter lost orders. You need to know that there are many professional traders whose win rate is only equal or even lower than their loss rate. However, they all make a lot of money. The important thing is when you win, how much you win, and when you lose, how much you lose?

Here, I will list out the costs for you once again.

– Lost orders.

– Brokerage fees.

– Computers, laptops (hardware).

– Software.

– Other office equipment.

Those are your main and most expensive costs which you cannot cut down. Your goal is to make the money earned from the winning orders, after deducting all the above costs, still to be “a few dollars”.

So how to make Forex trading profitable?

In this article, I will only outline the key points. Regarding the details, I will write into different articles. These are the points that I personally think are the most important to help us earn profits in Forex trading.

As I said above, our goal is to maximize the amount of money we earn from winning orders. This is to offset the costs before you can bring your profit home. Basically, we have the following two choices:

  1. The ratio of winning orders is much higher than that of losing orders.
  2. The amount earned from winning order(s) is much more than the amount lost from losing order(s).

Most experienced traders agree that the second choice is “easier” than the first. What we mention here is the risk/reward ratio (Please note that the risk comes before the reward).

How to make Forex trading profitable?
How to make Forex trading profitable?

If we determine this ratio to be 1:2 for all orders, we only need a winning ratio of 35-40% to achieve a relative profit.

Professional traders who can be referred to as successful, are not the ones with extremely high win rates (like 70-80%). Usually, their winning rate is just about 40-60%. But they make sure that the amount of money earned from winning orders is much greater than the amount lost from losing orders. In this way, they will reduce the pressure of having to win a lot but they still make money, even a lot of money.

We don’t have to go from-win-to-win. We can lose more than win but with a good management strategy, we are still winners.

What is the difference between Forex business and others?

For other businesses, your work is to explore the market, learn skills, or provide/develop a product. Then, develop those skills and products until they are better than most of the same products available. That will bring you the money.

Trading here is likewise – a business. If you want financial assurance, you also have to go sleepless or even drop blood for it, like a true businessman. You need to learn to be patient, focused, disciplined and dedicated. You also need to work hard, be passionate, and fully control yourself as well as your set business plan.

What is the difference between Forex business and others?
What is the difference between Forex business and others?

In the Foreign exchange market – Forex trading, you cannot control or manipulate the market. To be successful, all you can do is find out what’s going on. Is it the right time to make your transaction?

You, certainly, can never depend on advice from others, or random fortunes to succeed in this market. Certainly, you cannot build a fully automated system that lets you free and automatically earns money for you.

You need to be constantly learning, cultivating, and developing until you have a trading strategy which you can trust. And even if this strategy brings you success and money, you still need to monitor and develop it day by day.

How to build your Forex trading career?

Successful traders understand the key point of their trading career. It is about building trading skills, not relying on advice from others, or some accidental fortunes.

When you have your own trading rules, which are right and comfortable for you, you just have to keep developing them. This helps you eliminate stress and anxiety when trading, making it a light and fun career. Trading can become something very interesting and pleasant when you believe in the rules and systems set by yourself.

How to build your Forex trading career?
How to build your Forex trading career?

Once you achieve those things, focus, and trust them. Do not “ask every passerby how to build your house” in finding the strategies that sound good. Just stick to your own strategy and look for the opportunities it brings.

So believe in yourself and consider Forex trading as a real career. That’s how you start your trading path.

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