One of the most attractive points in Forex trading is the possibility of getting rid of your routine job, or at least increasing your income by feeding it with regular revenue from trading profits.
On the ground, if you are a newcomer to the world of trading, it is big dreams, and perhaps unrealistic, that fuel your ambitions. However, it is only though you've already heard of traders who tried to make extra income by trading part-time or full-time but ultimately failed.
This may lead you to question the reality of the chances of achieving even a small additional income from Forex trading.
To answer this question, we will review some of the obstacles that could challenge success in this endeavour. We'll then list some tips that will increase your chances of success.
Is this scenario possible? Yes!
First of all, the brief answer to the question "Is making a small extra income from Forex a realistic idea?" is "yes".
But the "yes" here comes with a lot of caveats. It's not realistic to put this idea as an easy task to accomplish, or that you can achieve success in a short time.
It can take months or even years to build a regular income from Forex trading that you can count on in your life. Throughout this long journey, you will face many challenges.
If you're not ready to confront them, or try to rush and take big risks, this will destroy your account faster than you'd expect.
Obstacles you may need to overcome to turn Forex into a reliable source of income
Let's review some of the challenges you may face so you can make plans to overcome them.
One of the most important challenges in this area, which many individual traders are experiencing, is the lack of adequate funding.
It is true that you can open a trading account with a relatively low deposit, and some platforms allow you to make very small trades.
By the same token, you can start your journey in the Forex world with just a few hundred dollars.
But what you may not realise is that if you adhere to a rational strategy involving opening positions of the right sizes (i.e. not risking more than 2% of your account balance), you are likely to make very modest profits at the outset.
You will be able to double your account over time, but you will have a long way to go, especially at the beginning of trading.
Another obstacle to success as a currency market trader is the lack of time as a result of being busy with another job.
Even trying to make a simple extra income from Forex is essentially a job that has requirements like any other job. You'll have to do the same effort, time and hard work just like full-time traders, especially when it comes to learning to trade, monitoring markets and creating and testing profitable strategies.
Allocating enough time may not be an impossible task, but it will require some creativity.
3. Daily Schedule
In the same context, you may have difficulty scheduling trading tasks if you have to open your trades during the day-to-day hours.
This is also not an overcome obstacle, but it will require finding a suitable way to trade during business hours or at night.
4. Dispersion factors
Your focus should be at its best when planning and executing deals, but it can be difficult to keep your mind clean and make sound plans while you plan for a business meeting or if you're worried about performance evaluation reports from your boss in your day job.
5. Energy and Determination
Also, don't forget that your daily job not only takes time, but also consumes your energy and effort. Exhausting this energy and effort may make you have difficulties in being focused on Forex trading.
Tips for succeeding in achieving a small extra income from Forex
Now that you've learned some potential obstacles on your way, perhaps the next question is how to overcome them? The following recommendations may help you get the job done.
1. Don't leave your daily job.
You may feel like giving up your day-to-day job altogether and devoting your entire time to trading in currency markets.
No matter what job you're taking, never take this step. In fact, having a daily job at the beginning of your trading career is an essential feature.
Daily function will give you financial stability, and then some emotional stability, which is essential in trading. In addition, this post will provide you with the funds you need to deposit into your trading account.
If you are constantly withdrawing money from your account to pay rent and other household expenses, make sure you fail to grow your account sufficiently.
2. Choose a strategy and time frame that is right for your day-to-day schedule.
The advice here is to keep in mind the daily schedule when you choose and experience trading systems.
You should be able to find a system that allows you to trade without affecting your performance in the permanent position.
You can reach this conclusion during the pilot testing phase so you can finally make sure you choose a viable strategy.
3. Be patient and will willed.
The most important thing you can do to help yourself achieve extra income from Forex is to be prepared for a long time.
You won't become a winning trader overnight. It is difficult for some to accept this fact, but the sooner you understand this, the shorter the distance to success.
It takes a long time to make profits at a stable pace, but it probably doesn't take the same time to trade in a consistent way. You can decide to do it now.
This calls for choosing a conservative plan to manage your money, maintaining consistency of trade volumes, adhering to a trading strategy, and not rushing to make big profits.
Slow and continuous progress is the right way to reach success.
Building additional income from Forex is a realistic idea, but not easy
Because you are aware of some of the obstacles you will face when trying to earn extra income from Forex. You will then need to find a way to deal with time constraints and daily tasks, maintain your self-discipline, and deal with a slow start due to small capital. But with patience, commitment and creativity you will be able to overcome all these obstacles.
Eventually you'll discover that you can make a small extra income from currency trading. On this basis you will find solid ground to enlarge your account day after day. One day you may earn enough money to spare you your fixed salary and allow you to leave your daily job.