Do you dream of giving up your current job to trade the FX market full-time? If so, you are not alone! Many people have started trading this financial market in their spare-time and found they really enjoyed it. If this has happened to you and made you think about trading as a career, then you might be wondering how to turn it into a functioning business.

It really is worth taking the time to plan this carefully. As with any career change, it will be a big leap and one that you must be properly prepared for. Of course, if you are already trading as a hobby then you will know all about how the market works and what trading strategy you will use. There are still some extra things to take into account though to help make the transition to full-time trader as smooth as possible.

Time to be serious

If you want to become a full-time FX trader, then you need to treat it like a business. It has been fine to treat it like a hobby until now, but you need to be serious about it when it is your career. After all, this is how you will make money and pay your bills! Getting into the mindset of a professional trader who considers trading as his job and puts the hours in to make it work will benefit you greatly in the long run. If you approach it in an informal, half-hearted fashion then could lose money.

What other tips are there about becoming a professional FX trader?

As noted above, it is assumed that you have done all the basics around learning to trade when doing it for fun. To transition into being a professional trader the below points are worth consideration:

  • Develop your chart skills – as a hobby trader, you might have only paid a passing nod to FX charts or made impulse decisions without truly studying or understanding them. When you trade as a business then that will not do. Take the time to understand the candlestick patterns you see that indicate a potential price movement as well as what the various indicators do, and learn how to draw trend lines on charts. Many FX pros use daily forex charts to base their decisions upon as they provide more reliable information with less noise.
  • Set up a separate business bank account – the chances are that until now you will have funded your trades with money from your personal bank account. That is not really advised when trading full-time, it is much better to set up a business account that you will use only for trading. It just makes it much easier to do your end-of-year accounts along with ensuring you are only using business money to trade with.
  • Get focused – the difference between trading as a job and as a hobby is quite large. It certainly is not about how many screens you have to work from! To trade like a pro, focus 100% on trading when you are at work. Don’t be distracted by chatting to friends online or watching TV out of the corner of your eye.
  • Get a mentor – a great way to turn your trading hobby into a business is to get sound advice from someone who has already done just that. They can tell you what they did, what worked for them and what to avoid. That is easier than ever now because if you do not know anyone in person that could help, you can find useful advice online.
  • Be prepared – the psychology of trading as a job is much different to trading as a hobby. Be prepared to deal with this and also all that real trading involves. Don’t be depressed after a losing trade as they happen to everyone. Don’t change your trading plan every five minutes – stick with it. Be prepared to not enter the market and leave if for the day if no trades are on.

Trading for business is rewarding and fun

Although it is important to get into the mindset of a full-time trader and to treat it seriously, it will still be fun. After all, you are doing something that you love and you will enjoy the freedom and financial rewards trading for a career brings. That alone will make it a positive change for you and one that you will not regret.