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Is Forex Trading the right career choice for you?

17th April 2018 Print

As of the first quarter of 2016, there were around 4.7 million self-employed workers active in the UK. This is indicative of a growing trend in Britain's labour market, as workers continue to seek out flexible careers that deliver financial and social returns.

This number includes freelance financial market traders, who have capitalised on technological innovation within this sector to thrive in a truly competitive space.

While it may be easier than ever to become a forex trader, this does not mean that you should automatically pursue this career. Here are some of key considerations to help you make an informed decision.

1. Do you Understand the Forex Market?

This is arguably the most important consideration, as it's hard to map out a viable career path without understanding it in clear detail.

In the case of forex trading, this means developing an in-depth knowledge of currency and how it is traded, while you'll also need to understand how the market is susceptible to volatility and liquidity. Similarly, it's important to cover the fundamental principles of the forex market, as currency is a derivative asset that can drive margin-based returns and losses.

With a comprehensive understanding, you can accurately appraise forex trading as a potential career and determine whether it suits your skill-set and objectives.

2. Have you Practised your Skills Through a Demo Account?

If you decide that forex trading is a viable career option, it's important that you test this theory before you make a financial commitment.

You can do this quite comfortably in the digital age, as online trading platforms such as GKFX  offer clients temporary access to a demo account feature. Through this, you can access a simulated marketplace that replicates real-time conditions and prices, while using fake currency to execute your trades.

This will help to bridge the gap that exists between theoretical knowledge and practice, while helping you to determine whether such a career is right for you.

3. Do you have the Finances to Launch your Career?

Like most freelance career options, operating as a forex trader requires you to make an upfront financial contribution. While you can open a trading account for a few hundred pounds in the modern age, you'll also need to have a contingency plan to cover any interim or marginal losses that are incurred over time. 

Without this, you'll struggle to earn consistently through forex trading, even if you utilise automated features such as stop-losses.

So, if you don't have the requisite finances to support your initial trading activities, you should take the time to build incremental savings and establish a realistic time-frame for when you want to launch your career.