If you have heard about forex before you probably know that it is an amazing opportunity to earn a great income, but it can also be a very risky endeavor.
Why is that?
Because a lot of novice investors from Canada don’t understand that trading forex must be viewed as any other business; you have to invest some capital (both in the form of money and some of your time) to get good results. But when done properly, it can be a great way to reach financial freedom and make a living, free of an employer and free of a fixed workplace.
You just have to follow simple rules to be successful in forex trading and be able to pursue it full-time, enjoying the comfort of your own home. Advanced automated trading strategies might even allow you to spend as little as few hours a day and still manage to make more income than with a regular position; in fact much-much more income.
How much can you make with trading?
It might sound exaggerating but with forex the sky is the limit. It is such a huge market with incredible amounts of capital floating around, that most strategies you can think of can be executed without limits. And by reinvesting your profits you can harvest the effect of compounding returns and grow your capital and income quickly. From as little sums as a few hundred dollars to as much as hundreds of thousands.
What will you need to trade?
Here are some basics that you will definitely need to get started:
- A reliable internet connection (possibly redundant connections)
- A decent computer
- Some capital to get you going
- Basic knowledge of the forex market
- A fast, cheap, and reliable forex broker
- A profitable strategy
- Discipline to follow your strategy
- A Canadian friendly broker
This is not an exhaustive list, but it has all the things that are absolutely necessary. Maybe you will ignore the first two as non-important, but do it at your own peril. We could tell you horror stories for days about how much some traders lost because their computer or internet connection failed them at a very important occasion. For now just believe me that you need those things.
How much capital do you need?
Luckily nowadays you can start trading with as little as $100 and we would suggest starting with a small amount until you gain a little experience. As the minimum is so low, the starting sum should be determined by your personality and financial position. An important rule of thumb is that you should never start trading with money that you need for your everyday life. That is because it would cause an immense amount of stress to you not to lose it.
And stress is not good for a trader’s performance. It can undermine even the most talented individual with the best strategy. That doesn’t mean that you cannot use your profits for every-day expenses; on the contrary, that is the goal of trading, but you shouldn’t NEED it to start with.
Later if you have stable gains from trading you can base a part of your monthly budget on it and you might even be able to make forex your only source of income in time.
Also, you have to look at the costs and possibilities of trading at your broker to decide on your initial capital. Is there an account maintenance fee? What are the commissions and spreads? What are the minimum position sizes and the amount of leverage?
Choosing your Canadian Forex Broker
In order to answer these questions, you have to know some things about forex brokers before you choose one. Depending on the amount you want to invest and the trading style that you want to pursue there can be more than one answer to the “Which one is the best Forex Broker?” question. In order to help you pick the perfect broker, I will do a series of reviews covering the leaders of the industry.
And lastly, let’s talk about the most important investment that you can make, that is investing into yourself . Your knowledge will be the key to your success and the basis of your trading business. Get to know the market! Learn about strategies, indicators, and sources of information, and finally gain enough experience. You will benefit greatly from all of these and you will be able to make a living, and achieve financial freedom through YOUR KNOWLEDGE!