A day in the life of a forex trader
Despite the fact that it’s the largest trading market in the world and accounts for trillions of dollars worth of trading every day, Forex trading remains a foreign concept to a lot of people. So we thought we’d give brief outline about what daily life can be like for someone that trades Forex…
How the day starts really depends on the trader. Some people try to analyse every piece of information that’s available to them – picking over data, plotting charts, watching news updates – while others just check a few key things. That might also depend on whether they treat trading as a full time job or whether they’re just in it to make a bit of extra income on the side. That’s one of the interesting things about trading; every forex trader is different. Some people’s lives revolve around it. Others just fit in a bit of trading when they can.
There’s a general consensus though – even amongst those that do it full time – that trading shouldn’t become too much of an obsession. That’s because, like anything, it’s difficult to focus intently on trading all the time – even though, with currency prices being in a permanent state of fluctuation, there’s huge temptation to overanalyse the data. That’s why having other hobbies to keep a trader’s mind fresh is so important. Keeping a healthy balance ultimately leads to traders deciding to focus on specific currencies and at certain times of the day rather than having an ‘always on’ attitude. Time therefore becomes an important factor in the daily life of a trader. As markets open and close in different parts of the world, the market becomes more and less active. Depending where you are in the world might affect what times you decide to trade and most traders will have a routine or set times when they like to trade.
That usually starts in the morning when a trader checks on the overnight action, primarily to check on any open trades they have. Perhaps they might not have to do anything, perhaps they might have to stop losses. Either way, at the very least they’ll probably end up updating some information on their spreadsheets (which traders tend to keep so they can keep track of how they’ve been going).
Then they might look at placing some trades. If the trader is experienced, they probably won’t spend too much time analysing as they’ll already know the key things they’re looking for. Less experienced traders will probably end up spending a bit more time doing analysis before placing trades. And once the actual trades have been placed, things more or less take care of themselves. The market will do what it does and all the trader needs to do is monitor their open trades; once a day, three times a day, every hour – that decision is up to the individual trader.
As with any job, Forex trading has its share of good days and bad. But with such a vast network of traders operating all around the world, you can be sure that no day in trading is ever exactly the same. Just be sure you cover the basics such as picking a good forex broker. You can read various forex broker reviews here.