This was a question which appeared in our Quora space. It is a pretty good question because I hear this quite a few times, especially from those new to trading Forex, or trading in general. Naturally, there are varying opinions; however, it comes down to a few fundamental questions.
How you define financial freedom?
How much do you need to live each month? $500, $5000, or more? You must be realistic with this number. Trading does not guarantee a dependable paycheck.
How much can you afford to fund an account? $50, $500, $50,000, or $5,000,000? Disposable income – do you have it? Never use funds for rent, food, and basic needs…ever.
How much trading experience do you have? None, a few months, or years? Be honest. Most are “aware” of the markets, but have no real trading experience. Glancing at your company sponsored retirement account or reading through the prospectus of a big firm’s financial mailing does not count.
How much time and effort can you commit to learning the craft and then refining? After all, anything worth doing should be done correctly – especially when it comes to making money. We all start strong, but life can get in the way. Organization, prioritizing, walking away for a break and coming back focused are all part of the journey.
Will you be trading your money or a firm’s money? What? I can do that? You bet you can! We have a link to another blog down below which opens up that world.
Being true to yourself will be very helpful here. Knowing your strengths and weaknesses will help guide you towards whatever your goals may be.
This is not an impossible task. I personally know people who have transitioned from demo accounts to live accounts and finally to trading for a firm (or themselves) and do in fact make their living (financial freedom) doing just that – only trading FOREX.
Truthfully, it won’t happen quick. We advocate a minimum of six months to a year of diligent study and practice; learning the fundamentals, understanding the mechanics of the trading platform, developing your system, honing your skills, and creating the necessary trading psychology and money management profile for yourself before risking real money.
A word of caution. Many advertisements entice the public with the lure of obscenely high leverage from brokers all over the world. Others gleefully promise untold riches in an unrealistically short time frame while showing you their “personal” jets and fancy cars (rented for the video), traders who can show you their secret algorithm – for a fee of course. There are “mentors” who will show you the way…for an even higher fee.
It’s All YOU
Those who persevere in their own personal efforts may be handsomely rewarded as they find success and their account grows, creating sustainable income. One day, when that income replaces what you make in your current job…you have officially found a way to your financial freedom and can kiss your old job and boss…goodbye!
The best part is that you depend on nobody but yourself – complete self sustainability. We wrote a blog on this very subject. Check it out: Trading as a profession
Never give up. Put the time and effort in to study hard. Paper (demo) trade first. You can do this.
Coincidently, we have a course to help you get started on your journey. Click HERE for more information.
More to Come
There’s a lot more to come. If you haven’t signed up on our contacts page or subscribed to the YouTube channel, please consider doing so to receive notifications as we continue to publish helpful, relevant, and informative Forex related material to support your quest to becoming a better trader.
You can do this…be RELENTLESS.
BTW – Any information communicated by Stonehill Forex Limited is solely for educational purposes. The information contained within the courses and on the website neither constitutes investment advice nor a general recommendation on investments. It is not intended to be and should not be interpreted as investment advice or a general recommendation on investment. Any person who places trades, orders or makes other types of trades and investments etc. is responsible for their own investment decisions and does so at their own risk. It is recommended that any person taking investment decisions consults with an independent financial advisor. Stonehill Forex Limited training courses and blogs are for educational purposes only, not a financial advisory service, and does not give financial advice or make general recommendations on investment.