Have you ever wanted to ask a professional forex trader some hard hitting questions around where they began and what sort of advice they would offer new forex traders? If your answer was yes, then this interview with a professional forex trader (not to mention forex mentor) is for you!
How did you discover the forex market?
I always had an interest in business and making money. I remember Googling information about the stock market and stumbling across an ad for forex trading. I clicked it and the rest is history I guess!
From there, I owe my start to forums such as www.babypips.com / www.forex4noobs.com and have no hesitation recommending anyone interested in learning about trading forex to check them out.
Why did you start trading?
Because I wanted to make money. It sounds crass, but it’s the truth. You can go on about a challenge, freedom, etc etc, but you either make it as a trader by making money or you fail because you don’t. There is no in between.
Around money of course there’s the freedom you gain from answering to only yourself, living the forex lifestyle. Making money from trades that you’ve planned out from start to finish is actually very rewarding, even if nobody else fully understands the process you went through to make it work.
After having studied the market, do you think it’s possible to become a professional forex trader and trade for a living?
Yes, it is possible to trade forex for a living. A handsome living at that!
But a word of warning. Something I have been said before in another interview with a professional forex trader, is that your psychology changes when they are relying on that next trade to pay for dinner for the week, or worse, that home loan repayment for you and your family. It’s something that’s hard to explain, but you trade differently when you feel you HAVE to make money. You rush entries that you shouldn’t, you take profit early to pay the bills and of course this all affects your bottom line.
A lot of the most successful professional forex traders use their trading income as diversification. It takes away this pressure and allows them to let the market come to them rather than chasing trades that don’t exist. Something to consider when going full time.
Have you ever blown an account? If so, how did you deal with it emotionally and what did you change about your trading when you started again?
It still feels embarrassing to say this now, but yes. And I still remember the disgustingly sick feeling I got when I was margin called (saw that last trade automatically closed by my broker).
Nothing was working for me after some short term success and I just couldn’t accept taking the string of losses that I now understand are part of the game. So I doubled up… and lost. Doubled up again… and yep, lost. I can’t remember how many times, but it sure adds up way faster than you expect doing this and my last trade basically risked half my initial account.
Emotionally I came to a crossroads. This was it. I either made trading work through fixing my flawed risk management processes, or I quit and gave up on trading consistently for a living. When you face reality and that feeling of rock bottom when your account blows up, you wont want to do it again!
Do you think you have an advantage over others since you’re a market analyst doing an interview with a professional forex trader?
Yes, I have an advantage working for a forex broker as a market analyst… but not in the way you intended that question to be answered.
I don’t have access to any super secret information or greater resources than anyone else has. My advantage comes simply because I spend more time in front of my screens than 90% of traders out there. People are inherently lazy, me included. But by writing about both fundamental and technical sides of the market in this position, my advantage comes because I am ‘forced to’ put in the screen time that I know I otherwise wouldn’t.
What should a beginner do before he opens a live account?
Of course a new traders should have a basic understanding of what all the terms in forex are as well as how to use the platform that they are trading on. There is endless free educational material online and your broker will always be happy to help run you through their platform.
But there is just simply no way to prepare a new trader for how they will handle drawdowns and having their own hard earned money on the line. Go live with even a small account and I guarantee that you’ll feel the heat. Learn how to control yourself and trade the same percentage risk that you would on a bigger account.
If you can double a $100 account with only 2% risk per trade, then you can double a $100,000 account the exact same way.
This interview with a professional forex trader was originally conducted for @doran899mali as part of a larger ‘passion project’ piece.