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 some money when you sleep or while on vacation? Retired or on the verge of being and in need of an income? Forex is also great for baby boomers. Recently I read that over 50% of Baby Boomers will continue to work to some extent during retirement to make ends meet. If stocks don't increase your wealth, currency trading could.
But how do you learn to trade Forex if you already have a job?
1. Start now
2. Start slowly
3. Find a mentor
4. Learn to trade for the long term
5. Learn how the currency markets work
1. Start now – There is no better time to start than now. You don't need to invest a lot of money, but you will want to invest some in order to be properly educated. It doesn't mean taking expensive Forex courses or joining a trading institute that costs thousands of dollars. There are many free resources out there, and you can find all kinds of business information at your local bookstore; also online where many traders help other traders improve.
2. Start slowly – There is no need to rush to learn how 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 type of trading, as traders are often misled about how easy it is to trade. It's easy but it's also easy to lose money. In my opinion, you should take at least a year to educate yourself and demo trading, or trading a mini or micro account.
3. Find a mentor – You have started to trade and you are going slowly. If possible, find a mentor. This person doesn't have to be local. With email, texting, and Skype, your mentor could be halfway around the world. Don't necessarily take the first one either. In fact, you might have several people supervising you. Eventually you will be drawn to the one who is most helpful and gives you the tips that help you make money, the ultimate criteria.
4. Learn to trade for the long term – Many traders work all day, then go home and spend time with the wife and family, then retire to their office for a few hours of trading. If that's you, you're probably looking to score a few pips before bed. There are problems with this way of thinking. You can lose one trade and enter another quickly and recklessly, causing another loss. You could walk into a trade when the market is like water in a swamp, without moving. Learn how to trade long term first. In other words, a trade that lasts from days to weeks taking into account the ups and downs of the market. Then if you retire, you can take that trip and show up to the market once or twice a day and make your decisions.
5. Learn how the currency markets work – It seems obvious, but it is not. Many traders do not understand the dynamics of why a particular currency pair would move in a certain direction and why. This is crucial and it takes time to develop this skill. Just spend some time each day on one of the many financial sites. Learn to read people who don't sell diaries. Learn how to get a picture of the economy and its impact on the currency you are trading. This skill may seem obvious, but in my years of trading and mentoring I find that most people haven't developed this skill. If you develop it will make you successful.
These tips for keeping your job and learning how to trade Forex will anchor you in trading and help build retirement income. Good luck and let me know how you are.
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