Living by Trading [Forex 2021]
Published: July 17, 2020 by Andrew
Is it possible living by Trading? What are the possibilities? What is the initial capital you need to do it? Many traders who are approaching the financial markets for the first time have the dream of living on trading.
This guide explains, step by step, how to achieve the objective of living by trading, even for those who really start from scratch both as initial capital and as experience and knowledge.
Living on/by Trading: the false myths
Before explaining in detail how to achieve the goal of living on trading, let’s review some false myths that can represent dangerous limiting beliefs for those who want to start living by trading. If you think that online trading is a way to make easy money or, on the contrary, that it is difficult, it is reserved only for those who have a lot of money or a lot of experience, you are wrong and you will never be able to reach your goal.
Who is able living by Trading
Many novice traders think that the professional trader is a winner who makes a wonderful life, spending all his time on vacation. It is, of course, a completely wrong view.
Those who live by trading usually spend many hours in front of the computer to trade online. Usually he is a professional with very high profits so he will surely enjoy his free time to the fullest and will also have many holidays, but he does not spend all his time doing nothing!
Living by trading is not the same as living in income: trading is in fact a speculative investment activity that requires continuous attention from the trader. It certainly does not require the same effort as a normal job and it is much more comfortable (you can trade online directly from home) but this is not the same as saying that it is possible to live on income with trading.
Learn Online Trading
Another false myth of novice traders is that it is difficult to live by trading, that it takes a great experience and a great initial knowledge. Here we must distinguish.
It is obvious that to trade online you need to study, but for many aspiring traders this becomes a limiting knowledge. Everyone can learn online trading, it is not as difficult as you think.
In any case, there are excellent courses that explain really well how to trade online even from scratch. Currently one of the best courses available on the internet is that produced by the famous ForexTB broker.
This course is completely free and has been downloaded by hundreds of thousands of users in Europe in the past year. How come so successful? First, in fact, the fact that it is free. Taking into account that most of the online trading courses are paid (and they also cost a lot), it is a truly significant advantage.
The strength of this course, however, is that it really works, that is, it explains step by step how to make money with online trading without wasting time with theory.
It is also a course written in plain language, which everyone can understand without problems. You can download the ForexTB course by clicking here.
Living by Trading: the minimum investment capital
Another dangerous limiting belief is that of the initial minimum capital for online trading. Those who know the benefits of trading and would like to start often think that it takes a very high capital to do it. Wrong.
There are brokers like Iq Option that require a starting capital of just 10 euros. It is truly a very low sum, within everyone’s reach. Those who want can also start without investing a single penny, using the excellent demo platform that Iq Option makes available to all members.
The advantage of the demo is that you can do trading experiments without any kind of risk. Thanks to the demo, therefore, you can quickly accumulate trading experience without even an initial investment.
You can sign up for free on Iq Option by clicking here.
We took the example of Iq Option because it is the online trading broker that allows you to start with the lowest amount, just 10 euros. But also all the other best brokers allow you to start with a sum all in all within the reach of everyone, between 100 and 250 euros.
What it takes to start the path that leads to live by trading is not money: it is commitment, determination, study.
Living by Trading: how to do it
What should those who want to live by trading do? First of all, it takes patience and commitment, a lot of patience and a lot of commitment. On the internet there are too often advertisements for methods to make easy money with trading but in most cases these systems prove to be scams that make you lose all the capital invested.
Anyone who wants to live on trading must know that it takes study, because online trading is not a game. Here it is good to make a clarification: studying a little theory may also be fine, but what you really need is practice. That’s why the best online trading course, the one given by ForexTB, is completely practice oriented and only explains the indispensable theory.
Online Trading in Demo: why it is so important
Studying a course, even the absolute best like the one given by ForexTB, is absolutely useless if you don’t do practical experiments. For this reason it is advisable to open a demo account immediately to try everything you study, immediately, without letting time pass.
They are completely free trading platforms that offer the possibility to operate in demo mode without limits and without constraints. Thanks to these platforms it is possible to immediately apply, without costs and without risks, what has been studied and quickly accumulate experience and then go without fail when you start operating with real money. We will see in more detail the reviews of these brokers which are excellent for those who want to trade online and start from scratch.
Online Trading with real Money
Demos are a real blessing for those who want to live by online trading but they are not enough. Online trading is not only made of technique and strategies but also of psychology.
The great millionaire traders are not those who know the best techniques and the best strategies: usually, however, they are the ones who manage to dominate emotions such as fear and greed and always keep the mind focused. They are people able to go all the way, no matter what happens.
To become a great trader and start living by trading, therefore, the demo experience is not enough. Of course, with the demo you can test the strategies studied in the trading course to learn how to apply them without fail. But when you work in demo there are no emotions, after all you cannot gain anything and you cannot lose anything.
That’s why those who really want to live in trading must, sooner or later, take the big step and start trading with real money.
Best broker platforms for online trading
Obviously when you start using real money you have to be careful, very careful and choose only trustworthy, reliable and honest broker platforms. Even better if these brokers also offer additional benefits for the novice trader.
There are now numerous brokers for online trading that offer high levels of security and reliability. Most of these brokers, however, are not easy to use and therefore are not suitable for those who begin the path that leads to live by trading.
For this reason we have selected some brokers that, in addition to being trustworthy and reliable, are also very easy to use, even for traders. In addition, we have selected only completely commission-free brokers. Below is a table with the best brokers to trade online:
Min. Deposit: 50€
Min. Deposit: 100€
Min. Deposit: 50€
Min. Deposit: 250€
Min. Deposit: 100€
Min. Deposit: 250€
Online Trading with ForexTB
Many of those who start the online trading experience from scratch start with ForexTB. Indeed it is an extremely simple and intuitive broker, everyone manages to start quickly and without errors. One of the main strengths of ForexTB is the possibility of being followed on the phone by a real trading expert. The service is completely free and it is really very useful because thanks to the advice received it is even easier to start without errors.
Another great gift from ForexTB is its complete guide to online trading which you can download for free. We have already talked about this guide which, among other things, is truly available to everyone, not just ForexTB customers. Just click here to download it for free.
ForexTB also offers excellent trading signals to all its members. These signals are indications of extremely advantageous market situations for the trader. Usually services with such reliable predictions have a high subscription cost, but ForexTB offers them for free. Click here to request free ForexTB signals.
Read also our full review on ForexTB
ForexTB offers a great demo platform, identical in all respects to the real platform and therefore perfect for those who want to experiment without risk.You can sign up for free on ForexTB by clicking here
Online Trading with eToro
eToro is an excellent option for those who want to live on trading and start trading from scratch. eToro is a completely free broker, without commissions and without costs. The eToro platform is extremely simple and intuitive but there is more.
Thanks to eToro it is possible to operate automatically: it is possible to select the best traders (those who have earned the most in the past) and start replicating all their operations.
With this mechanism, called Copytrading, many novice traders achieve a twofold objective: on the one hand they immediately begin to gain profits with trading, on the other they really learn online trading by observing what the greats in the market do.
Read more: our full review on eToro
eToro also offers a great demo platform for free, which allows you to test without risk. In the case of eToro, the demo also serves to verify (if there was any need) that Copytrading really works.You can sign up for free on eToro by clicking here
Online Trading with Iq Option
Iq Option is a platform particularly loved by those who start trading online because it allows you to start with an initial capital of just 10 euros. Among the advantages of Iq Option it is also important to remember the extreme simplicity of the platform (truly one of the most intuitive).
Those who want to learn online trading have the opportunity to follow hundreds of complete video courses that fully show how to trade in the best way.
Read more: our full review on Iq Option
Iq Option also provides an excellent demo platform, unlimited and without constraints, which can be used to train without risk.You can sign up for free on Iq Option by clicking here
Living by Trading: the markets
There are numerous financial markets. Which is the best for those who want to live by online trading? There is no clear answer to this question. It all depends on personal preference.
In any case, the principles and techniques for trading online do not change according to the chosen market: many of those who live on trading actually operate simultaneously on all the main financial markets, seizing the opportunities where they present themselves.
For completeness, we review the main financial markets.
Living by Forex trading
Forex is the largest, most liquid and most efficient financial market. It is also probably one of the most famous financial markets. Many novice traders choose to try to live on forex for this reason.
Could it be a good choice to start investing in forex? Absolutely yes, but it is appropriate, at least at the beginning, to focus on the main currency pairs because they are those where more information is available. Using a good forex signal service can be a winning choice to obtain accurate forex forecasts (you can also help with the economic calendar).
Careful: forex is not a game. The fact that signals can be followed (or copied directly with eToro) does not mean that it does not take a minimum of basic preparation before starting to operate. We always recommend that you start by studying a good forex course.
Living on the Stock Exchange Market
Another very famous market is the stock exchange and many traders choose to start investing in the stock market. Better the stock exchange or the forex? There is no clear answer, it depends on the initial preparation and possibly also on personal preferences.
Here too, however, the principle of choosing the shares of large, better known and more liquid companies applies. It is much easier to get correct and up-to-date information on Amazon, to say, rather than a small and dark company that nobody knows what it really does.
Living on Bitcoin
Bitcoin has been the most revolutionary financial asset of the past 30 years and has also changed the world of online trading. In fact, the big increase in the Bitcoin price in 2017 made many traders very rich.
Many traders, precisely because of this sensational growth, have begun to appreciate Bitcoin as an asset for online trading. It is true that in 2018 the price of Bitcoin collapsed and then a lateral phase began.
But the beauty of online trading is that you can earn both when prices go up and when they go down (if you didn’t know, better download this complete guide to trading for free).
In practice, the fact that the price of Bitcoin changes quickly (both positive and negative) makes it an excellent asset to trade online and there are many traders who live by Bitcoin trading.
In this case it is worth remembering that no financial asset is destined to grow forever, not even Bitcoin. We remember it because some traders on Bitcoin are used to thinking that its price always goes up. It is not like that at all. There are times when the price goes up and others when it goes down. That’s why it’s important to make accurate Bitcoin predictions (or follow those of the more experienced).
Living by Trading: the book
One of the most famous books for those who want to live by trading is that of Alexander Elder, entitled: Trading for a living. Psychology, Trading Tactics, Money Management.
Here is the official presentation of the book:
Alexander Elder is a professional trader, a world-class expert in technical analysis, and a practicing psychiatrist. He believes that successful trading is based on three M’s: Mind, Method, and Money. First, you will see that the key to winning is inside your Mind. You will find out how to develop discipline and how to avoid the traps of emotional trading. Second, you will learn how to find good trades by using charts, computerized indicators, and other tools. You will discover how to combine several analytic Methods into a powerful trading system. Finally, you will learn how to manage Money in your trading account. The rules for limiting risks are as vital to a trader as a safety net is to a high-wire walker. With this book, you are on your way to mastering a new way of trading stocks, futures, currencies, and options. Dr. Alexander Elder helps you embark on an intense pursuit—trading for a living.
It is a rather expensive book, since it costs 80 euros. Is it useful? We can certainly say that it is a good book and provides excellent advice for those who want to live trading. On the other hand, however, it does not offer any better content than the free ForexTB course that can be downloaded with a simple click here (even without being a ForexTB customer).
In short, a useful resource but it is probably better to invest the 80 euros to trade online and use a free resource to learn!
Is Living by Trading a living annuity?
Up to now we have dealt with those who want to live on trading: trading is an activity that many compare to entrepreneurial one (although actually it is much easier to trade than to be an entrepreneur).
The trader must be active on the markets, he must make (uncomplicated) decisions and he must act. Trading online however requires a certain number of hours per day.
Even with eToro, where you can instruct the platform to copy what the best traders do, an almost daily effort is needed to verify that the selected traders are generating the expected (high) profits.
The same thing can be said of those who use Trading Signals: also in this case it is necessary to verify each signal before using it. Also, trading signals are not a form of automatic trading, so orders must be entered manually!
It is usually thought that living on an annuity means living without doing anything, waiting to receive a sum of money monthly to live. Unfortunately, online trading is not a way to live on an annuity because it still requires a strong commitment.
It is true, those who manage to get rich through trading have the opportunity to accumulate a high wealth and then can live on income thanks to the accumulated wealth. Strangely, however, the greatest trader in history, Warren Buffett, who has accumulated a wealth of tens of billions of dollars has not stopped trading at 80 years old. Life choices.
Living by trading is possible, even for those who start from scratch. There are excellent courses that explain how you make money with online trading and that are accessible to everyone for free.
The best way to start trading is to study and then immediately apply the techniques and strategies learned, first in demo and then with real money.
It is very important not to let yourself be blocked by limiting beliefs: the goal of living by trading is much simpler to achieve than you think, but you have to believe it to the end and seriously work!
Yes, however the path is not easy. In any case, many independent Traders live on their work.
Study of the markets, passion, lots of practice and a capital to invest in order to live with the performance achieved.
It really depends on everyone’s lifestyle. In general, an initial investment of not less than € 3,000 may be sufficient.
One of the most profitable is eToro’s Copy Trading, also suitable for those who have no experience since it automatically copies professionals’ operations.