When most people stumble upon the money making possibility of the Forex market, they get very excited, a common expression is "I can quit my day job and be a Forex trader." This is not a good idea; I hope to highlight in this article the various reasons why this is not a good idea.
Five Reasons why you should not quit your Job and start Forex trading:
1.) Unstable Income – Nine to five jobs offers you a stable income, whereas in Forex trading your income can fluctuate hugely from month to month.
2.) No pension Fund – Most employees offer you pension fund for when you retire, depending on the company setup – usually the employer contributes a portion to the employees pension fund. In Forex trading you do not have this luxury. A trader must be disciplined enough to put away a portion every month for his retirement.
3.) No health care benefits – Most companies offer employees health benefits for their employees, In Forex trading, you would have to make sure that you have your own health care coverage.
4.) No company car – many employers give their employees the fringe benefit of a vehicle, for business and a small amount of personal use. If you were Forex trading and you gave up your job, you would need to make enough from your trading funds to afford your motor vehicle.
5.) Working in isolation – Most Forex traders work from home and some people like to work with colleagues and work as a team. If you are trading Forex full-time, you do not have the support of colleagues and you are responsible for your own success or failure.
I hope that you consider these facts before you decide to "quit your job and become a forex trader." If you are interested in becoming a full-time forex trader, start trading in the evenings after work. The forex market is open 24 hours a day 5 days a week, if you are really successful at this, then you have a stable job and a bonus income which can help you afford all the luxuries you have always wanted.
Full-time forex trading is not as glamorous as online forums and adverts make it out to be, it is tough work and takes many years of experience before a forex trader becomes very profitable. Only a very small percentage of people make a profit in their first year of forex trading.