This article looks at the move from part-time FX trading to full time trading.
There are a lot of traders who start their FX trading career as part time traders. Many of these traders will want to eventually make the move from part-time FX trading to full time FX trading. When you do this there are a number of points that you have to consider. When you look at these points you will be able to make the transition from part-time trading to full time trading easily. Of course, you will have to consider that this move is not something that you are going to be able to do overnight.
Should You Make the Move?
The first point that you have to consider is whether or not you are ready to make the move from part-time trading to full time trading. This is not a decision that should be taken lightly. If you do not do well on the market then you are going to have a problem if you are quitting your job. Before you make the change you have to consider whether or not you are profitable with your part-time trading. If you are then you can consider making the change. If you are not then you should consider why trading full time will change this.
The Financial Backing that You Have
The second point that you are going to have to consider is the financial buffer you are going to have. It is important that you are able to carry the expenses that you face for a number of months. You might not be able to make the profit that you need for a number of months when you move from part-time trading to full time trading. It is recommended that you have enough money to carry your living costs for 6 months before you make the change.
Maintaining Your Part-Time FX Trading
It is important that when you change from part-time to full time trading that you maintain your part-time trading schedule. When you continue to trade part-time you will be able to keep this profit. When you do this you have to ensure that the part-time trading does not overtake the full time trading.
Starting on a Demo Account
When you first move to full time trading you are going to have to trade on the demo account. The experience that you have on the market will not help you as much as you assume. The experience you have is in the part-time trading capacity and this is generally different to the full time trading capacity. The strategy that you use with full time trading is going to be new because you are going to have more time for the trading.
The demo account should be used for at least a month. The trading that you complete in this month should be consistent and if you make any changes to the strategy or plans that you are trading with you should restart the month. This is why it is very important that you have enough money to buffer your expenses for a number of months.