Trading forex for a living
Online trading has been a hobby of mine for a while now but it was time to start trading forex for a living.
But where to start? Join me on a trip to forex town and find out if you could be spending your days as a forextrader!
Trading forex from home
I was looking for something that would get me the ‘freedom’ to work anywhere. Pick up my computer and start working.
Like most people, I was also dreaming of not spending my days in front of a computerscreen. I wanted more time with my kid, family and husband.
My forex hobby trading had given me some insights on what trading would be like and it was the only ‘work’ that could tick all the boxes:
- Working from home or anywhere in the world
- Needing just a computer, phone and internet
- More freedom and time for the important things in life
What is forex trading?
Forex trading is comparable to trading stocks except for the fact that you don’t trade ‘pieces’ of a company. In the case of forex trading you trade currencies and exchange one for the other in an online marketplace.
Forex stands for FOReign Exchange and it is the largest global market in the world. The daily volume is about 5.3 trillion and that makes the forex market move, a lot. Currency trading doesn’t require you to read company statements or keep track of what’s going on with Elon Musk, for example.
Currencies move mainly on news and interest rate statements, but those announcements are scheduled. I can just choose to not trade around news!
Forex prices are quoted in pairs, one currency expressed in the other currency’s value.
EURUSD for example is quoted as: 1,1335. For one EURO you need 1,1335$
This exchange rate is the most important thing for a currency trader and it can change up to several times per second.
The currency exchange rate reflects the health of an economy in comparison to another.
If the US economy is doing very well, the price of the dollar will rise compared to the Canadian dollar for example. The USDCAD pair is one of the major pairs for trading forex.
Short or Long
Trading forex offers me the opportunity to go long (if I think the price will rise) or short (if I think the price will drop). The stock markets open and close every day but the forex market only closes for the weekend, Christmas and new year’s. Any other day, it’s open, 24/7.
That gives me the opportunity to trade on moments that fit my schedule.
Making a living of forex trading
Let me start by ‘telling’ you that it is possible to start trading forex for a living but don’t quit your job just yet. In my next blog I’ll tell you more about what is takes and what you need to trade forex from home. Make your dreams come true!