Every time an individual shows an interest in forex trading, he is advised to take his immersion into this unpredictable field slowly. The forex market is an extremely complex one that takes time to crack for a beginner. Choosing to dive straight into the deep end would mean that the chances of drowning are more probable than swimming.
This is precisely why part time forex trading is recommended for beginners. However, there has to come a point where the trader has to take his foreign exchange trading efforts to the next level.
If the trader makes this decision too soon then he is doomed to take some huge financial hits and if the decision is put off too long then stagnancy can creep in. Thus, knowing when to step it up a notch is crucial for a trader.
If you have been trading on a part time basis for some time now then you may be considering whether you should make the choice to make the proceeds from foreign exchange trading your primary source of income.
This decision will have ramifications for years to come. Here are some markers that you should choose to decide whether you are ready for the big league in forex trading.
One Year of Profitable Experience
You should not start relying on forex trading as your primary source of income unless you have spent one year practising it and gaining stable profits. If you do not have this experience then it is likely that you have not seen all the major situations that the forex market can throw your way.
Ideally, you should have more than just one year of profitable experience of forex trading under your belt. However, at the very least, your first milestone should be 12 months.
Steady Returns For a Quarter
If your returns from forex trading are considerable enough then you can consider graduating from part time trading to full time. The term considerable is fairly subjective in nature.
However, considerable should mean that it should be a sizeable portion of your total income. Another way to see the term considerable is whether you have started expecting your income from foreign exchange trading as a part of your life and even relying on it to cope with some of the more major life expenses.
Planning the Progression
Before you move from part time forex trading to full time trading, you should have a clearly defined strategy on how you are going to ramp it up. This means that you should know how to increase your returns and your foreign exchange trading efforts.
Moving from part time to full time would mean that you would have more time to devote to forex trading. The extra time that you will be getting needs to be allocated to worthwhile pursuits whether your targets are short term or long term.
The Backup Option
At the end of the day, prudence should force you to have a backup option as well. This would be a way for you to bring your life back on track if forex trading on a full time basis does not bear the fruits that you expected.
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