Trading Forex For A Living
By Ray Caran
Every trader's goal in life is to trade for a living. Although it is extremely difficult it is attainable.
The first step is to determine how much money you need to pay your everyday bills. When the accumulated monthly profit amount is at least twice as much as the amount you need to live, you may consider taking out 50% of those profits. Once you reach that point you will make a living and your trading account will increase each month and at the same time the amount you deduct from your account will also increase every month from that point on.
To accomplish that goal you need start up capital. Please do not expect to open an account with $3,000 and expect to earn a livable wage from that investment. If you are looking at making around $2000-2500 a month, which is 150 to 250 pip if you are trading whole lots, then you would expect drawdowns of not less than 300 pips. Your initial account won't last very long. You should plan on investing at least $25,000.00 if your goal is to earn around $2,500/month.
There is a very good quote attributed to Dr Alexander Elder who wrote an excellent book called Trading for a Living. That quote is as follows:
Brokerage records indicate that 95 out of 100 people trading today will probably be gone from the markets a year from now. They will hit rock bottom, crumble and leave. They will try to forget trading as they would a bad dream.
In order not to be one of the 95% mentioned above you need to find a system. A good system is the key of financial investing success. If you have your own system or you want to copy some elses system, you need to look at two things first:
1. Maximum Drawdown,
2. Feasibility and hours of trading.
There are a few types of traders:
Casino Traders
Casino Traders are traders making decisions based on instinct alone. Such traders always have two results to expect the price is going to go down, or the price is going to go up. Casino Traders will do their best to follow the trend, but without understanding how a trend works, they will only have past price history to
Bookworm Traders
The Bookworm Trader, has gained Forex knowledge from researching free resources available across the web, participating on Forex forums, reading free e-books, and other materials. It may be a very long time before they are ready to trade confidently.
Educated Traders
As we know, 95% of all traders end up losing, and only 5% survive as successful traders. Before investing money in a live account, they invest in themselves by paying tuition for professional Forex education.
The dream can become reality, it is not easy but it is doable.
Many Forex investors utilize automatic Forex Trading Programs. There are some truly amazing programs available. Do some serious research.
About the author
Go here for an amazing Automatic Forex Trading System Forex Profits While You Sleep from http://www.FreeArticlesAndContent.com
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