(gentle music) – We just have a quick question here from a subscriber asking, whether it's possible for someone to make a living from forex trading.
So, this is a very commonquestion first of all, we do get the question all the time.
And it is a very understandableand valid question to have especially, withall of the various scams and nonsense out there thatyou get in the industry.
Now, the short answer isyes, it is possible to make a living from forex.
But there are a few thingsthat we need to consider and keep in mind.
So, the first one is we need to distinguish betweentrading for a living and, working in the Forexindustry for a living.
Now when it comes to tradingitself, there are a few routes that you can take, which includestrading your own capital, or trading other people'smoney maybe as a fund manager or money manager.
And then even maybestarting your own hedge fund or prop firm et cetera.
Now the challenge for mostretail traders who want to trade their own capital is that theydon't realize how much money in reality they need to beable to trade full time.
Especially if you're notplanning to trade with leverage.
If you're planning to tradeon leveraged you will need a very big or substantialamount, to be able to earn a decent living from it.
Apart from that, you alsoneed to consider whether you have the right psychologicalmakeup, to be able to trade for a living using your own capital.
The uncertainty of living on that type of commissionsbasis if you like.
Living from trade to trade so to speak, it's definitely notsomething for everyone.
That type of stress canreally break certain people if you're not really ready forthat type of responsibility.
Then you can also trade ofcourse other people's money, which is a much better option.
Because you can basically use or leverage other people's capital to trade more substantial amountswhich makes it much easier to live from in the long run.
However again, you also needto consider whether you have the right mindset to be ableto manage other people's money.
Because, there are lots ofgood investors out there, but there's also lots and lotsof bad investors out there.
And being yoked with the wronginvestor can really break you as a trader.
So, with all the stressinvolved it's often a much better optionfor most traders to do it from an investment point of view.
So just like you wouldhave a portfolio with a financial advisor or an investment fund.
You have a capital amountthat you basically invest and trade, as a retirement fund or as a savings fund et cetera.
Now the other route that you can follow is to work inside the forex industry.
That can take many forms, such as working as an analyst, or trading for a hedge fund, or for an investment firm, or for a prop firm et cetera.
And the good part about thatis that you can basically earn a living for doing whatyou would need to do anyway as a trader, right.
So, you get paid while youmanage your own capital on the side if that makes sense.
So, you would have done all the analysis and the research already for yourself but now, you can earn anincome for that analysis, for that work that youwould have already done.
But you can earn an incomewhile you basically run and manage your ownportfolio in the background.
So, I hope that gives youan idea about your question.
So yes, it is certainly possibleto make a living from it.
But there's various anglesthat you can approach from it.
Apart from trading other people's money what a lot of people do is, they prefer to offer signals.
So once they have a great track record going, you can basically sell your signals on various websites out there.
What's great about that is you can do that with either a very smalltrading account, right.
So, you can have a verysmall trading account.
And if your track recordis good enough, you can get people following you that pays you a monthly subscriptionto follow your signals.
And that is something that you don't need a very big account for.
So, there's many different avenues that you can follow for it.
It is certainly possible, but it can be a little bit more technical if you're planning to doit from a full time basis.
So, hope that helps your question.
Of course if there's any otherquestions, don't hesitate to let us know.