You have learned the hard way, who have survived the Forex Market through its ups and downs. Maybe you have blown two or three accounts but you never gave up. You are earning 10% or 15% or maybe 20% but due to your small investment, this 15% is not enough to meet your expenses, by earning 15% you are unable to leave your pathetic job then it is time to become Professional Forex Trader.
Learning Core Concepts
For becoming a successful Professional Forex Trader only technical analysis is not enough. Risk Management and Trading Psychology are more important at the expert level as compared to Technical Analysis. You have to be very vigilant with your risk and money management and apply the core concepts of trading psychology. You can visit our Chapters on Risk & Money Management and Trading Psychology __________ for better understanding and learning. Fundamental Analysis, Technical Analysis, Risk & Money Management, and Trading Psychology are the four main skills you have to be on expert level to join the elite class of few Professional Forex Traders.
Technical Analysis is the study of the Price and Volume of any currency, stock, commodity, or metal over a certain period. In Technical Analysis different tools are used to evaluate the shift of demand and supply and its effect on the price and volume. Technical Analysis is also used to gauge the volatility of the price movements. Technical Analysis is used to generate signals for buying and selling. The biggest advantage of Technical Analysis is that it can be used on any security which has historic trading data. By Technical Analysis we try to predict the future based on the past data of price action and volume. In Technical Analysis we are least concerned about the overall performance of the company, security’s intrinsic value, or fundamental analysis instead the main focus of the Technical Analyst is to identify chart patterns and trends and movement of a security in near future.
The Fundamental Analysis of a currency pair in forex is to find the intrinsic value of a currency. Many factors affect the relative value of a currency for example political, social, and economic factors are the major contributors which can cause fluctuations in the currency rates. Economic Factors are one of the major reasons which can cause a change in the rate of a currency relative to the international Forex market. The GDP growth, inflation, Consumer Price Index (CPI), Producer Price Index (PPI), and per capita GDP all are important for the fundamental analysis of the currency pair. The policies of the Government Central Bank also play a major role in the rates of a currency like adjustments in the interest rates and debt purchases. Marshal Laws, War, Political Conflicts, Protests, Political unrests, and other political issues can cause the currencies to go up or do relative to international Forex Exchange Markets.
If we have to decide which is ranked higher in Forex Trading, Technical Analysis Or Money Management? Most people would answer Technical Analysis, but the bitter truth is Money Management is more important than Technical Analysis in Forex Trading. Developing a good Money Management system is the key to success in Forex Trading. Money Management is the process to manage the money in a Forex Trading account to minimize your losses as minimum as possible. It is not possible to make all trades in profits, losses are part of the game. Money Management techniques are used to keep the losses manageable so that another chance to new trade can be availed.
Working for Institutions
You have achieved the level of Professional Forex Traders with more than 15% annual profit on your investment over the years but your investment is too low and you don’t have enough money to raise your capital so that who can leave your pathetic job, freelancing or business and solely work on Forex. There is a way for it, there are many investors and companies out there who are looking for you. The list of few organizations that can partner with you is below. You just have to apply for Forex Trading Account and show your results. These institutions will give you good money.
Full-Time Forex Trader
By becoming a Full-Time Forex Trader you will enjoy working from anywhere around the world with no 9 to 5 daily routine. You can work any time you want which suits you. The Forex Market is the most liquid financial market in the world. It is a market that is open 24 hours (except Saturday & Sunday) giving you more time flexibility compared to stock trading. You can start trading in any time frame you want. Forex Trading allows you to have more free time to spend with your family and friends.