If you already know about the advantages of full-time Forex trading, then you probably think that it is proper to find out about the disadvantages of such an approach to the foreign exchange market. Few active Forex traders switch to full-time trading, and there are five good reasons for that:
- It takes time. If you are a successful Forex trader, you probably want to spend more time with family or for yourself personally. You earn enough to do that, but if you trade full-time, you will not have more time than an average non-trader. After all, Forex is good because it can offer financial freedom, which should lead to more free time, and a full-time Forex trading approach just seems to be ruining that.
- Overtrading. Following the market all day is a straight way to overtrading, which in its turn is a bane of many currency traders. Only emotionally strong and experienced traders will be able to avoid constant overtrading when sitting in front of the Forex trading terminal all day.
- Having to trade short-term. If you trade full-time, you might feel that you have to constantly search for new trading opportunities. Long-term trading opportunities are not that frequent in Forex, and you will have to either take the short-term ones too or be bored with simple monitoring of the market. Both choices are unacceptable for a long-term Forex trader.
- Dependence on Forex profit. If you trade Forex full-time, the chances are that you do not have any other source of income. This means that if you enter a series of losses, you will not be earning money and you might even lose your initial deposit. If you have a daily job and trade Forex only occasionally, you do not depend on Forex earnings too much. So, if you plan to go full-time, you better be sure that you will have enough money for living and upholding the necessary account balance even after a streak of huge losses.
- Focusing on unnecessary things. As it often happens, when you have a huge inflow of information, you will get a lot of unnecessary data, which will mislead you. If you trade Forex all day, you will be trying to find opportunities in the chart formations and fundamental events that do not have anything important in them. It is not overtrading because you will soon understand that these opportunities do not let you trade on them, but it is still a waste of time, your time, which is precious.
Although the number of disadvantages is smaller than the number of the respective advantages, it is all about the importance of each of them for the particular trader. It is up to you to decide whether full-time trading is suitable for you.