One of the most common questions I see new students ask me is “When can I quit my job for forex?”
I love that people are so excited and eager to make forex their full time job, but this is the wrong question to ask.
I know what it takes to be a full time forex trader. So trust me when I say it isn’t simply a question of “When?”
What matters most is “How?”
How To Quit Your Job For Forex
First of all, you need to make sure trading forex full time is really what you want to do. If you have only just started trading forex, this is not something you will be able to answer just yet. You have not experienced how exciting trading can be, or how frustrating it can be.
So rather than asking yourself “When can I quit my job for forex?” ask yourself “What do I need to do in order to be able to quit my job for forex?”.
The answers to this question will be slightly different for everyone, however, there’s a few things that will be the same. Let me show you
Am I profitable?
This question should come as no surprise to you. You simply cannot make forex trading your main source of income if you are not profitable. That’s just a fact.
However, it is not enough to be profitable. You need to be profitable enough. What does this mean?
It means you make enough profit to cover your monthly expenses. This is personal finance 101, but it is a step that is often overlooked. If you haven’t done so already, now is the time to take a good look at your finances.
Make a document where you list all your monthly expenses, and figure out how much you need minimum each month to survive. Minimum meaning just the pure basics needed for survival.
That number is how much profit you need to make each month minimum. If you aren’t there, don’t even think about quitting your job. You will deplete your savings faster, you will turn into a stressed out mess. Don’t do it!
Aside from this, you still need to be able to grow your account! So not only do you need to make enough profit to cover your expenses, you still have to be able to grow your trading account.
Of course, there are ways to reduce your monthly expenses (budget!) but I am not a personal finance blog nor am I financial advisor. If you’re interested in this, there are plenty of resources out there to help you out!
Okay, so let’s say you are profitable. Your profit is exceeding your minimum income needed by quite a fair bit and you are able to continue growing your account! That is great, but that doesn’t mean you should go ahead and quit your job.
Do I Really Want To Trade Forex Full-time?
I get it, really! Trading forex full-time seems like a dream. No boss to answer to, setting your own hours, being able to sit in your pyjamas all day. Sounds great!
But trading forex full-time can be stressful and lonely.
You really need to enjoy trading forex to a certain extent if you want to quit your job for it. When you say you want to trade forex full-time, is it really forex you want to do or do you just want to get away from your current job?
Many people make the mistake of thinking that forex is their holy grail. It means they can finally work from home! No more boss! “Making my own fortune!”.
They don’t realise that they hate trading forex just as much as they hated being an accountant or a secretary.
Before you quit your job, make sure you are okay with forex being your job instead! Instead of going full-time, give part-time a go. Test the waters and see how you do.
As I said before, trading forex can be quite a lonely job!
You might be living the dream of working from home, but the likely scenario is that your friends are still working 9-5.
Take away the social interaction from having your co-works around (yes, even Janine who won’t stop talking about her cats counts as social interaction), what are you left with?
Not only that, most people don’t understand forex and they certainly don’t care enough about trading to have conversations with you about it.
However, it doesn’t have to be lonely of course! If you’re part of my mastermind course, you have access to my forum where you can discuss trading ideas with fellow traders! It’s not the same as real life social interaction, but it’s better than almost none at all!
Some people might find it hard to adjust to this kind of life. If you’re very extroverted, you will benefit from pencilling in some social time.
Don’t end up cooped up trading forex and feeling miserable! Trading on the go is now easier than ever, so take advantage of it!
Alright, so you’ve come to the conclusion that you do really want forex to become your full time job, there’s still more to do!
Before you go ahead and quit your job to live of off your profits, you need a safety net. Enough savings to get you through 3 months of no profits. If you haven’t built this up yet, start now!
Now, when I said safety net I did not mean your emergency fund. Instead, I meant a plan B. What are you going to do if it doesn’t work out? Work out a plan for when things don’t go your way.
You’re probably thinking “Why wouldn’t it work out? I make more than enough profit!” Well, sure you do.
But your lifestyle isn’t depending on it. Making forex your full-time job can put a lot of pressure on yourself!
That added pressure can result in you taking riskier trades or increasing the amount of trades you take.
Which in turn, can result in your profitability going down. Not so good!
First of, I am not a financial advisor. I cannot stress this enough.
Many people think that because I am a full time forex trader, I have the answers to everything and I am qualified to give you advice on this sort of thing.
This is far from the truth.
For one, I don’t know your financial situation! And secondly, I am definitely not qualified to give you advice.
Everything I have said in this article comes from my own, personal experience.
Being a full time forex trader isn’t easy. And it’s not your only option!
You can be a part-time forex trader. Use the freedom forex trading has given you to explore other options!
Quitting your job for forex needs to be treated as quitting your job for your own business. If you want to do it, make sure you are properly prepared for it.