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How to make a living on forex trading

You will possibly already understand that there are a couple of different ways you can trade the forex markets. You can make an application for a trading job in the City, whereby a bank will employ you to trade the markets on their behalf, or you can use your own money to trade from home or from work. Whichever you choose, you have to remember that they are absolutely different.

To begin with, it is not easy to get a job with a top financial institution. You can by all means apply to every one of the banks in the City, but you will have no success whatsoever unless you have a good degree from a good university behind you. There have been times when people have got in without a degree, but this is often because someone in their family members has excellent reach outs to.

If you like the concept of being a self utilized forex trader, then it is a great deal easier to get started. You could conveniently open an account with a forex broker and deposit some of your financial savings. Then you could trade whenever you want, offering you have an internet connection. With regards to the amount you require, it doesn’t have to be a 6 number sum, but you do need to make sufficient profits to live on.

This is a notable difference due to the fact that when you are employed as a trader, you are not actually trading your own money. There is still the pressure from above to make money naturally, and you will receive some big cheques if you handle to do this, yet at the back of your mind you always know that you have a big salary to fall back on.

When you are self-employed, you will not make any money whatsoever unless you make a profit. Furthermore your standard of living is entirely based on how successful you are at trading the currency markets.

As a result of this, there are various tensions linked with each position, and also they entail different mindsets relatively. Those who work from home will have a different mindset to those working in the City because there are different incentives involved. One group of people are interested in earning big bonuses, whilst the other has to make money in order to earn a decent standard of living.

City traders have the luxury of being able to take a few more chances due to the fact that it is not their money on the line. People which work from home, however, do not have this high-end and need to protect their capital at all costs before they can even think concerning making any money.

Somehow it is a lot easier to work in the City for a large bank. Also if the worst happens and you lose a bunch of money from inadequate trading choices, you will still have made a huge income before losing your work. It might not also get to that stage anyhow considering that when functioning in the City you have a lot of trading devices at your disposal, which home-based investors just can not afford.

So overall you have to say that the two jobs are completely various, and you need to adopt a completely different mindset apiece. This is because there are different stress involved. Even though your job is on the line when working for a bank, your entire livelihood is on the line when you work for yourself. So this is something that you should always bear in mind.

Written by Victor Yeboah of forexfidelity.com

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