Many people wonder if it is possible to balance forex trading with a full-time job, and the answer is yes, it’s certainly possible. Like most aspects of life, it does take some planning and preparation to achieve the best results. It’s important that you do not compromise your performance in either role by overstretching yourself.
Here are some tips to optimise your strategy and mindset to successfully combine forex trading and your full time job… and how trading could even become your main career.
Define your goals
First of all, it’s important to set out what you want to achieve, and to manage your expectations to ensure they are realistic. Do you want to earn some spare cash from your trading to put in a nest egg or pay for treats such as holidays and meals out? Or do you ultimately aim to make trading your full time career?
Make a clear-eyed assessment of your circumstances: do you have a regular nine to five and rarely work outside of these hours? Do you have a lot of commitments outside of work, such as family responsibilities, sports, hobbies, or voluntary work? Are you in a position to delegate or give up any of these demands on your time?
What is your current level of knowledge and experience: if you are a complete novice, you will need to devote some time to learning the basics and practising with a demo account before you let loose on an instant forex funding platform. Consider how much capital you can realistically afford to invest, and put a solid risk management plan in place.
Decide from the outset exactly how much time and money you have to devote to trading and what you want to get out of it. This will help to clarify your approach and make sure that you are focused and not overfacing yourself.
Sharpen up time management skills
Effective time management is at the heart of balancing trading with your existing responsibilities. Draw up a daily schedule with allocated blocks of time for trading and other duties. Set goals and categorise them in order of priority, and develop a daily trading routine so you don’t neglect certain areas and waste too much time on others.
Consider if you have times of the day when you feel at your most alert and productive, such as first thing in the morning, directly after a workout, or late at night when the rest of the household has gone to bed. Schedule your most demanding tasks for these times.
At first, this process will probably involve trial and error as you find your feet and gain a more realistic idea of how long it takes you to complete each task. Some forex tasks are open-ended and can lead you down rabbit holes, so monitor the time spent on these carefully and learn to focus only on what is most relevant to you.
Decide on your trading style
Part time trading may limit the types of trades that you can carry out successfully. For example, scalping and day trading require careful monitoring and significant time commitment throughout the day and may not be compatible with a full time job.
Long term trading where you keep positions open for days or even weeks or months are less time-intensive and may be more suitable for part time traders. It’s always better to focus on quality over quantity, so don’t be tempted to over-trade to compensate for limited timeframes.
Keep a trading journal
Keeping a trading journal may seem to be a rather unnecessary and time consuming chore, particularly when there is an accessible digital footprint of your trades. However, by keeping a detailed record of your reasoning for opening a position and your target price points, you will be able to more accurately measure your performance and correct any mistakes.
Don’t neglect your wellbeing
Balancing two jobs will inevitably absorb a lot of your physical and emotional energy as well as your time. Guard against burnout by carving out time to take care of yourself: ultimately, your wellbeing impacts on your ability to perform well so this is not self-indulgence or laziness.
Make time to exercise, eat well, and chill out with relaxing and undemanding activities such as listening to music or watching TV at least a few times a week.
Build a support system, both by networking with other traders and explaining your goals to your family and friends. This will help you pick up ideas and advice and give you somewhere to turn on those inevitable days when you wonder if you are doing the right thing.
Be disciplined and persistent
Finally, you will need to be highly disciplined to stick to your routine and work in a consistent manner. Forex trading rarely brings instant large rewards, but requires patience and hard work.
How to turn forex trading into your full time career
So you feel as though you are smashing forex trading as a side hustle, and are starting to nurture ambitions about turning it into a full time career. This is the dream for many, bringing the flexibility of being your own boss, and potentially unlimited earnings. Naturally, it also brings challenges and should not be done on a whim.
Here are some points to carefully consider, and how to successfully make the transition.
Make an honest evaluation of your current situation
Be honest with yourself and examine your reasons for wanting to go full-time: is it to escape the treadmill of a nine to five that you hate, or because you genuinely enjoy and thrive on the process of planning and executing trades? Your reasons should be weighted towards the latter, rather than purely because you are trying to get away from a negative situation.
The most successful forex traders do not prioritise making huge profits: they relish the whole picture of monitoring the economic news, mastering technical analysis skills, and exploring the best currency pairs to work with. Profits arise as a result of diligent and methodical planning and risk management, and not because of a single minded pursuit to get rich.
Review your performance over the last six or 12 months (if you have not been trading part time for this long, you are almost certainly not ready to step up to full time trading). If you are already making consistent profits as a part time trader, then you are already in a great starting position.
If you have not yet reached the level where you are making more gains than losses in your trades, or your performance is very uneven, you will be putting yourself under too much pressure by attempting to go full time. This could push you into taking risks and you will find it more difficult to manage strong emotions such as fear, greed, and panic.
Consider your trading environment
When part time trading, it’s easier to tolerate a less than ideal working environment. However, if you are going to make a full time go of it, you will really need a comfortable and distraction free place to do your best work. If you cannot have a room to yourself, zone off an area to create a physical and psychological barrier between your home and work life.
Review your trading strategy and style
As a successful part time trader, you will already have developed a trading strategy and probably stick to one particular style of trading. Consider if you need to adapt or diversify your approach.
For example, you will have the opportunity to make trades at any time of the day, and be able to monitor them more closely, so you may want to switch from position trading to day trading.
Financial planning
If you are intending to earn your living from full-time trading, you will need to ensure that you manage your finances carefully. Ideally you should have savings to cover your living expenses for at least the next six months to provide a backstop while you establish your full time career.
If possible, gradually decrease your part time hours rather than give up a steady income stream altogether. If you are currently employed, consider if you could transition to freelance work for an interim period. This will give you peace of mind that you can earn money if you really need to, and take the pressure off your fledgling trading career.
Draw up a budget to keep track of your monthly outgoings and income, and remember to factor in how much income tax you will pay as a self-employed person.
Remember that such a big step will rarely be straightforward, and you will need the strength of mind and resilience to persevere through uncertainties and setbacks. However, with a disciplined and careful approach and a commitment to continuous learning and development, you can become a successful part time or full time forex trader.