Hi to you all guys,
I've been pondering the question if you can FX trade for a living and if so, how and for who?
Basically, I am referring to the average new FX trader who at first is excited by this "new" huge market which may hold the key to secret reaches.
One buys all the hype, starts thinking it may be indeed easy but I reckon that pretty soon we get the reality check that is the market itself.
If you get passed the stage of having a fairly good method out of the many out there, if you eventually get disciplined and follow your own rules, get detached and unemotional, know your goals and develop a rather specific methodology you then get to know the other part of trading.
More specifically, if you do not start out well capitalized (as I believe few are) then it is unlikely that you will get rich. Even more, if you are able to consistenly achieve a let's say 30% return yoy then means that you are indeed a very good trader since the saying is that 95% of traders fails pretty soon since they have started.
You get 30% even if you have a full time job which you currently are bound from as you need to have your proper cash flow and revenues so that you can pay for your immediate and long term expenses and investments.
What next? As I said it is unlikely that you will get rich or even exceed your current level of revenues only because you have a small equity base. Plus you have all the expenses that you need to cover. What do you do?
Where can you be an FX trader as part of an organization - is it banks that also do trading in their own account, are there the asset and hedge funds, etc? Should you apply for a position as a trader and provide your trading track record?
And if you do decide that you want to trade, you are left with other questions: somedays you may not even place a trade - is that acceptable for a fund or do you have to place trades just to "be working"?
Are there positons in banks for FX traders but you should know somebody and have a strong formal education in the field even if you have a good track record and even if you have experience trading your own account? (I believe now that the market experience is extremely relevant as if you can prove that you can withstand all its pressure then you must be doing something right).
I haven't seen too many jobs as an FX trader for serious banks - what is it like a fraternity or something?
You might say that you can trade from home but I believe that trading from home has some disadvantages: you are mostly alone all the time and not interracting with anybody, you are not part of a strong organization and cannot make a professional carrier (you cannot apply for a loan as you are not employed, technically) and others.
Personally I like interacting with other since I am an open person and I don't know how well I would be doing all alone all day long at home.
Also, if you like in a developing country like myself, FX trading is something rather exotic and your options are pretty limited from the start.
What can you do then? What is your opinion about the issues above, have you also considered them or am I thinking too much ahead?
Just a comment, still - I believe that if your equity base is small, you want to generate huge returns so that you can make fast a good record for yourself and also get rich as that is all you've heard that FX is. I belive that's a sure way for serious and financia distress that may sigificantly affect you and/ or your style of living.
Please give me your feedback I am interested in getting to know also your views.
Thanks and goodnight
Bogdan
I've been pondering the question if you can FX trade for a living and if so, how and for who?
Basically, I am referring to the average new FX trader who at first is excited by this "new" huge market which may hold the key to secret reaches.
One buys all the hype, starts thinking it may be indeed easy but I reckon that pretty soon we get the reality check that is the market itself.
If you get passed the stage of having a fairly good method out of the many out there, if you eventually get disciplined and follow your own rules, get detached and unemotional, know your goals and develop a rather specific methodology you then get to know the other part of trading.
More specifically, if you do not start out well capitalized (as I believe few are) then it is unlikely that you will get rich. Even more, if you are able to consistenly achieve a let's say 30% return yoy then means that you are indeed a very good trader since the saying is that 95% of traders fails pretty soon since they have started.
You get 30% even if you have a full time job which you currently are bound from as you need to have your proper cash flow and revenues so that you can pay for your immediate and long term expenses and investments.
What next? As I said it is unlikely that you will get rich or even exceed your current level of revenues only because you have a small equity base. Plus you have all the expenses that you need to cover. What do you do?
Where can you be an FX trader as part of an organization - is it banks that also do trading in their own account, are there the asset and hedge funds, etc? Should you apply for a position as a trader and provide your trading track record?
And if you do decide that you want to trade, you are left with other questions: somedays you may not even place a trade - is that acceptable for a fund or do you have to place trades just to "be working"?
Are there positons in banks for FX traders but you should know somebody and have a strong formal education in the field even if you have a good track record and even if you have experience trading your own account? (I believe now that the market experience is extremely relevant as if you can prove that you can withstand all its pressure then you must be doing something right).
I haven't seen too many jobs as an FX trader for serious banks - what is it like a fraternity or something?
You might say that you can trade from home but I believe that trading from home has some disadvantages: you are mostly alone all the time and not interracting with anybody, you are not part of a strong organization and cannot make a professional carrier (you cannot apply for a loan as you are not employed, technically) and others.
Personally I like interacting with other since I am an open person and I don't know how well I would be doing all alone all day long at home.
Also, if you like in a developing country like myself, FX trading is something rather exotic and your options are pretty limited from the start.
What can you do then? What is your opinion about the issues above, have you also considered them or am I thinking too much ahead?
Just a comment, still - I believe that if your equity base is small, you want to generate huge returns so that you can make fast a good record for yourself and also get rich as that is all you've heard that FX is. I belive that's a sure way for serious and financia distress that may sigificantly affect you and/ or your style of living.
Please give me your feedback I am interested in getting to know also your views.
Thanks and goodnight
Bogdan