A trading career sounds like a dream for a lot of people. Working out how to trade forex and potentially make a profit can be a way to make a flexible living while working from home – or even while you are travelling to other locations.
It isn’t easy to turn trading into your career, but it is possible, and there are some steps you can take to start your career and try to build up a knowledge of trading.
Understanding the difference between terms like spread betting vs CFD, and the ins and outs of trading platforms can help you to make a real go of your trading career.
There are ways that you can land an employed position in trading, through currency trading companies, but there are also a lot of ways that you can make a living through self-employment, and this affords many people the sort of lifestyle that they want.
Let’s dive into some of the ways to start a trading career and steps that you can take if it is your ambition to learn about trading.
Skills to become a trader
The world has changed, and so has the world of business, and this means that there are many different ways to make a living using technology and a set of skills.
Whether your goal is to become a day trader or a form of forex trader, there are certain skills you will need:
- Patience. A lot of the skill in trading is waiting for the ideal opportunity and then being able to strike while the iron is hot.
- The ability to spot patterns. So much of being a trader is about spotting patterns and working out where the opportunities are. There are technology solutions out there that can help but ultimately, there is no substitute for human intuition.
- Analytical skills. This includes being able to analyse the industry and things that are happening around us that could impact the markets.
- Use of technology. You need to be very good at using technology, and be able to understand the platforms out there in order to make successful trades.
These are just some of the examples of trading skills, and the very best traders will have far more skills that help to set them apart and even allow them to turn trading into their career.
Have a strategy
There are many different strategies for trading and some are far riskier than others. Fortunately, a lot of traders have made courses available and even blog about their progress, which can help you to work out their strategies and even copy them and learn from them.
It is down to you to decide whether you want to go for a high-risk strategy or whether you are trying to be more conservative, to turn modest profits but also protect your investment.
Use the demo platform
The good news for a lot of aspiring traders is the fact that they can try to learn how to trade without even having to risk any money, using demo platforms. Most of the big forex trading platforms allow you to use the software in ‘demo’ mode, where you have a fictional account with a fictional amount of money in it. This can then be used to make pretend trades, which are a way to test whether your strategies are working.
When the time is right and you are confident that you totally understand trading, the terms involved, and how to buy and sell, you can move to a real money account.
Always track your results
Tracking stocks and portfolios is easier than ever, thanks to technology. Most of us carry around in our pockets a telephone that has the capacity to check online for the current trading prices and track the results that you are experiencing.
If you are making profit, you can use your tracking to work out how and why, and try to inform future investment opportunities. If you’re not turning a profit then it is possible to analyse this, too, and learn what is working and what is not working. When it comes to trading, it is fair to say that knowledge is power.
Summary
There is a lot to learn if you wish to start a trading career, but getting started and exploring the very basics doesn’t have to be particularly difficult. Demo accounts can even reduce the risk and allow you to work out your strategy before using real money on your forex or trading account.