In this article, we will talk about whether you should quit your job for forex trading. Also, we will talk about what to consider when quitting your job and how to know when to quit your job for forex trading.
Should you quit your job for forex trading?
Yes and no. It really depends on two things. These are, how much profits you make with forex trading and your expenses. Let’s say you are making $5000 a month with forex trading and your expenses are $2000 a month.
Then it is okay for you to quit your job with trading because you are covering your expenses and you are making enough profits to re-invest into your trading account.
Other things to consider when quitting your job for forex trading
If you are a beginner forex trader, it is a bad idea to quit your job for forex trading. Most beginner traders lose money with forex trading. Also, when you quit your job, you will not have an income to pay for your expenses.
A good rule of thumb when quitting your job for forex trading is when you match the income that you get from your job with the forex trading profits you make. Another thing to consider is where you live.
Country you live
Let’s say you have a job that pays $60,000 a year. This is a typical full-time job salary in US/Australia. That means you need to hit $60,000 per year with your trading as well to be comfortably quitting your job.
If you are in a developing country, your job income will be a lot lower as well as your expenses. A great thing about living in a developing country is that you don’t have to make much with forex trading to quit your job.
Usually, if you are living in a developing country, if you make $1000/month in profits with forex trading you should be able to quit your job and live comfortably.
Your profit percentage and Capital
A successful forex trader usually makes a return of 5-15% per month. Let’s say you want to make $5000/month with forex trading. This is the full-time income in a developed country as we talked about before.
If you are a beginner trader, you have to expect to lose money maybe in the first few months. Some beginner traders take years to become profitable. Now, this comes down to how dedicated they are and the amount of work they put into forex trading.
Let’s say you got to a point in your trading where you make on average 10% returns every month. That means that you need $50,000 of capital in your trading account.
What type of person you are
Are you a huge risk taker or are you risk averse? If you are risk averse, it is not a good idea for you to quit your job for forex trading without making a significant amount of money with your trading.
What if you hate your job and don’t want to wait You are not alone in this. Most people hate their jobs but they are forced to stay in their jobs because of their expenses. You can quit your job faster if you find a way to reduce your expenses. Take a good look at your expenses.
The two biggest expenses for a trader are the rent (or mortgage) and food. Now, let’s look at how to cut down some of your expenses.
Are you renting the place you live? if so, is there a possibility to move to a cheaper place? Maybe you can move to a different city or even a different country where the living expenses are really cheap.
This way you reduce your expenses so that you don’t have to make too many profits with forex trading to quit your job.
Let’s say you are paying the mortgage. Now, this is a little bit of a harder place to be in because you can’t just ditch your mortgage and move to another place.
The first thing to consider is whether you can pay for your house in cash. If you can do this it is great but most people won’t be able to do it.
It can be a good idea to keep your job until you pay your mortgage. But, then again it all depends on how much you make with forex trading.
Something that you can consider is that if you are making some money with forex trading and you are working a full-time job. Maybe you can move to a part-time job just to pay the mortgage. Then with the forex trading profits, you can pay your other expenses.
Also, another thing to look at is how much you spend on food. If you spend a lot of money eating outside or buying expensive takeaways, this is something that you can cut down.
A good way to cut down on your food expenses is to cook food yourself. This way you can buy your groceries in bulk, which will cut down your food expenses significantly.
Another thing to consider is your other monthly expenses. Do you go to the gym? This is a huge expense for some people. But it is very important that you work out as well.
Maybe you can quit your gym membership and start doing calisthenics. Or maybe buy some resistance bands for working out. This way you can cut down your gym expenses as well.
Another expense might be entertainment. Do you go out with your friends every weekend and spend a lot of money? Maybe you should stop doing it.
If you really want to quit your job with forex trading you might want to consider this. You can always start hanging out with your friends when you make a significant monthly income with your forex trading.
Just imagine, what if you cut down your expenses to $1000/month? Then you only need to make $1500/month (some for savings) to actually quit your job with forex trading.
Your confidence level
How confident you are in your forex trading skills. Are you fairly confident that you can make at least 10% per month with forex trading? If so, you are in a great spot.
But don’t just think you can do this, you got to prove it to yourself. Make sure to track your trades and profits to see if you can make 10% monthly for 6 months straight.
Some traders might be able to do this for 1 or 2 months but will lose money in the third month. 6 months of consistency is a good rule of thumb.
Now, if you can really do this you don’t have to worry at all because you can raise capital or work with a prop confirmation to get trading capital. Let’s say you only had $10,000 in the capital. That means if you are making 10% per month you should be making $1000/month.
Then if you raise your capital to $100,000, you should be making $10,000 a month. But you still have to share profits with your investors. Let’s say you share 50% of your profits. That means you still will be making $5000/month.
This is how hedge funds and property trading firms make money. They raise a lot of money from investors. These firms have raised millions of dollars, if not billions of dollars. If you manage to raise millions of dollars, you don’t even have to make 10% per month in profits. You can make 1% per month and make a significant amount of money.
Let’s have $1 mill dollars in your trading account. 1% of 1 million is $10,000/month. Making 1% monthly in returns with forex trading is a lot easier than making 10% per month. Now, let’s talk about other things that you can consider as well.
Create another source of Forex Income
Let’s say you are a profitable trader that makes 10% per month in returns and you have a capital of $10,000 deposited in your account. That means you should be making $1000/month.
Since you are profitable, you can always sell your trading signals to others. You can verify your trading performance with myFXbook, so that others can see that you are profitable and want to buy your trading signals.
Let’s say you manage to get 100 people interested in your trading signals and you charge them a small fee of $47/month. That means you will be making $4700/month with this. Now that is plenty of money for most people to quit their job with forex trading.
Also, another great income source is that you can make your own trading robot and sell it. Let’s say you have a profitable trading strategy. Then you can create an automated trading robot and charge a monthly subscription fee from your users.
If you want to learn how to create a forex trading robot you need to learn MQL5. Hands down, this is the best programming language for creating your own trading robots. If you are interested in learning MQL5 make sure to check out this guide.
Why taking money out of your trading account might be a bad idea.
For example, let’s say you have $20,000 in your trading account and you make 10% per month in returns. That means that you are making $2000/month. This is absolutely an awesome place to be because most forex traders will not even hit this level.
Now if you take all the profits you make from forex trading to pay your expenses, you will always only have $20,000 in your trading account. This means that you will only make $2000/month with trading.
Let’s say you don’t quit your full-time job for at least 1-2 years from now. That means you don’t have to take money out of your trading account.
Now, let’s say you made $2000 in your first month with forex trading with your $20,000 trading account and you reinvested that $2000 back into your trading capital. This means that you have $22,000 in your trading account now.
Then in the second month, you will make $2200. Then you decide to reinvest this as well. This means you will have $24200 in your trading account. As you can see, if you don’t take money out of your forex trading account, you can grow your account exponentially.
This is pretty much the compound effect, the 8th wonder of the world according to Albert Einstein. This is a huge factor to consider when deciding whether to quit your job or not. The image of you does not quit your job for 2 years and keep compounding your trading account.
You will have a huge amount of capital in your trading account in 2 years. A huge amount of capital means that you will make a huge amount of profits per month as well.
Learning forex trading to quit your job
There are several ways to learn forex trading. You can get a book on trading, buy an online course or watch youtube videos on trading. But the best way to learn forex trading if you are a beginner is to get our free complete guide on trading here.
In our trading guide, we go over step-by-step learning how to trade. We cover all the essentials you need to become a profitable trader. After you go through the guide make sure to take action and practice what you learned.
Remember that just by going through the guide you will not become a profitable trader, you need to practice and gain experience to become a profitable trader.
Conclusion
In this article, we talked about whether you should quit your job for forex trading. We also discussed when you should quit your job and things that you should consider when deciding to quit your job for forex trading.
As discussed in the previous section, if you are interested in learning how to trade in the forex market, make sure to check out our complete guide.
