A common question is asked, “At what point can I start trading for a living?”

In every instance, this question is generally asked from a trader who currently works fulltime at a job. By the nature of the question, I am assuming they no longer have a desire to do what they want to do.

Take your standard job. You trade hours for dollars. It is quite a dependable system. Your lifestyle is built around the reliability of a steady paycheck. Your average family has a mortgage payment, two car payments, and a wide variety of other bills to maintain their daily life.

My question is, “Why disrupt a system that works so well?”

What is it that the trader really wants?  More time? More money? Generally it is both. It is quite fair for one to want more out of life than what they have. However, I do not advise one to disrupt a working system. Especially when they want to trade it with something that is not as routinely reliable.

Do not read this incorrectly. One most certainly can profit from Forex. However, your job is without much risk, while trading Forex is.  Bills need to be paid on a monthly basis. And the average household budget relies on the steady and routine income a job provides.

I suggest viewing Forex as one would view their 401k. It should be seen as an investment. No one immediately expects a return of their 401k to make a living on in a relatively short period of time. Nor should one expect that of Forex. While wealth can be generated faster in the Forex markets, it’s extremely important to be patient.

The pressure to maintain a living can be stressful enough. Likewise, the pressures of the currency markets can be mentally demanding as well. Imagine the stress of having to make sure your EURUSD short is profitable in order for you to make your next mortgage payment. Is it far from the stretch of one’s imagination to think that such pressure can sway one’s rational thought in the market?

You need a level head to trade Forex. If you are mentally weak or pressured in ways that cause you to disrupt your rational thought, you are setting yourself up for failure.

I would not recommend anyone to rely on any investment to make a living on it, until one percent of that investment equates twice the amount of their current monthly income. And that particular investment has to have been shown to increase an average of at least 1% every month for three or more years.  So if your current monthly income were $3000, you would need a bankroll of at least $600,000 to even consider trading for a living.

The FX Trading Network has recommend trading systems and signal providers that can traders into growing their bankroll. With some patience, you will eventually accomplish the goals you set out to achieve.

Forex is not something you do as a hobby,  nor is Forex a game you play. It is a business, plain and simple. To treat it as anything less is foolishness. If you want a hobby, take up fishing. If you want to play a game, break out the Monopoly board.

Do you remember the reason why you decided to trade Forex? Was it because you wanted something fun to do in your spare time? Where you bored with yourself and thought this would entertain you for a few hours? No. You stepped up because you saw there was a potential to make money. That was your initial motivation.

What is great about Forex is that anyone can participate in this multitrillion dollar a day industry. However, that is it’s very pitfall. It’s a business where anyone can walk up to with any amount of money and enter this vast arena. As a result, there are those that enter the markets and not give it the seriousness it deserves. The want the results, but they are not willing to put in the due diligence that this business demands.

What other business can offer the potential that Forex offers where you can just walk up with any amount of money and get involved? Could you take 5 bucks and open up a McDonalds to work in your spare time? Didn’t think those. It takes money to run that type of business. It also takes an education to understand how that industry works. When you decide to purchase a McDonald’s franchise you are dead serious about business. Treat Forex the same.

The foolish trader jumps in and out of the market on a whim. He believes that his best indicators are his gut feeling and Lady Luck. The business-oriented trader did his homework. He knows why he is entering the market. And more importantly, he knows why he is exiting the market.

You need to control how much you risk at a particular time. The foolish trader overtrades hoping for quick riches. This same foolish trader wants to win every time.  The business-oriented trader understands that not every day can result in victory. Loss is a part of this equation and it is something that needs to be properly managed. A conservative trader should never risk more than two percent per trade.

Ask the foolish trader what his current win rate is. Expect a blank stare or perhaps even a flat out lie. The foolish trader who jumps from system to system might catch three winning trades in a row and will tell you that they have a 100% win rate. The business-oriented trader keeps records of their trades. He knows his business well. He could tell you win rate, average pip gain, as well as what timeframe proves to be the most successful for their evolving strategy.

The FX Trading Network recommends proven systems and strategies that can fit a variety of traders. Simply because someone else designed the system, do not be so foolish to think that all the work is done. The owner of your local McDonald’s did not create the concept. He purchased the franchise rights to it. However, the work is not done at that point. The system must be traded accurately and in a fashion that has already dictated its success.

Always remember that Forex is a business.