Are you looking for a way to make money while you are working; often called passive income? Maybe you would like a way to make money when you are sleeping or while you are on vacation? Retired or about to be and need income? Forex is great for Baby Boomers too. Recently I read that over 50% of Baby Boomers will keep working in some capacity during retirement to make ends meet. If equities are not adding to your wealth, currency trading just might.
But how do you learn to trade Forex if you already have a job?
1. Start Now
2. Start Slow
3. Find a Mentor
4. Learn to Trade Long-Term
5. Learn How Currency Markets Work
1. Start Now – There is no better time to start than now. You don’t need to invest lots of money but you will want to invest some so that you are educated properly. This does not mean taking expensive Forex courses or joining a trading institute that costs thousands of dollars. There are many free resources and you can find all kinds of information on trading at your local bookstore; also online where many traders help other traders improve.
2. Start Slow – There is no need to rush into learning to trade Forex. In fact if you do you will increase your chances of failure. The failure rate is high in Forex as in any kind of trading because traders are often mislead on how easy it is to trade. It is easy but it is also easy to lose money. It is my opinion that you should take a least one year to educate yourself and to demo trade, or trade a mini or micro account.
3. Find a Mentor – You’ve started trading and your going slow. If possible find a mentor. This person does not need to be local. With email, texting and Skype your mentor could be half way around the world. Don’t necessarily take the first one either. In fact, you might have several people who are mentoring you. Eventually you will gravitate to the one that is most helpful and gives you the advice that helps you make money, the ultimate criteria.
4. Learn to Trade Long-Term – Many traders work all day and then come home and spend some time with the wife and family then retire to their office for a few hours of trading. If this is you you are probably looking to score a few pips before bedtime. There are problems with this mode of thinking. You may lose a trade and enter another quickly and unwisely causing another loss. You might get in a trade when the market is like the water in a swamp, not moving. Learn to trade long term first. In other words a trade that lasts several days to weeks allowing for the ups and downs of the market. Then if you are retiring you can make that trip and check in with the market once or twice a day and make your decisions.
5. Learn How Currency Markets Work – This seems like a no brainer but it’s not. Many traders do not understand the dynamics of why a particular currency pair would move a certain direction and why. This is crucial and it takes time to develop this skill. Simply spend a little time each day on one of many financial sites. Learn to read people who aren’t selling an agenda. Learn to get a picture of the economy and how it will affect the currency you are trading. This skill may seem obvious but in my years of trading and mentoring I find that most people have not developed this skill. If you develop it will make you successful.
These tips on how to keep your job and learn to trade Forex will ground you in trading and make it possible to establish a retirement income. Good luck and let me know how you’re doing.