How to Become a Digital Nomad by Trading Forex
Every day, trillions of pounds are exchanged on the forex market. The best thing about this market is that you can trade on it 24/7. Unlike the stock exchange, this one does not have closing hours or days. You can make decent money on this market, and if you do everything on the internet, you can enjoy travelling around the world as you make your money. This guide will teach you everything you need to know about forex trading as a digital nomad.
Trading forex is one of the paths you can use to become a digital nomad. Going towards the path of trading forex to either supplement your income or choosing it as your full-time job is a good idea only if you are really good at it. One of the things that make trading forex stand out is that the forex market is always open and millions of dollars are traded every single day. Moreover, there is always room for one more trader to join.
But, can you really become a successful digital nomad by trading forex? Intuitively, the answer is yes. However, there are still many tales out there of digital nomads who jumped into trading forex with a capital of about $30,000 and ended with only a shirt on their back and of course the mobile trading app like metatrader4 they were using.
Without keeping you on wait for a long time, let’s take a look at tips you can use to become not only a digital nomad in forex trading but a successful digital nomad in forex trading.
Learn the basics
Forex trading is not something to start quickly. To bring you up to speeds, there are hundreds of currency pairs in the market all of which are affected by external influences and which you need to have the right skills to master. Use videos, tutorials, and any other resource you can use to learn the basics required in trading currencies.
Practice makes perfect
Once you’ve got the basics with money markets, you can proceed and take your first shot in the FX market in your digital nomad quest. Now, it will be a good time for you to install a mobile trading app of your choice on your smartphone, laptop or even both. The app will be guiding you as well as help you open a demo account that you can access from anywhere.
Additionally, you can use an online stock stimulator to practice your craft. These trading stimulators help you by simulating the possible situations that can occur in the FX market and ways you can achieve potential wins. The good part is that you can use the simulator while waiting for your flight or on your way to that serene hotel.
Use a Demo Account
Before settling for a single platform, make sure you test it out with a demo account. This trading experience will not cost you a cent of real money. Besides helping you choose a trading platform, a demo account will help you get a feel of the activity. You should take this opportunity to practise various trading strategies and see how successful you are. While making these trades, you should make sure you can place limit orders and stop orders. Also, check whether the spreads are fixed or variable.
When trading with a demo account, you can use the first few trades to find your best strategy. Once you identify your best trading method, you should start making decisions as though you were using real money. That way, you will figure out how much money you can actually make when trading at your best. If you have a small budget for your real trades, don’t use a large sum of money to trade in the demo account. Once you figure out the amount of money you can earn with your starting amount, you will be ready to start trading live.
Choose your hardware wisely. Before you even start trading, you will need to get the necessary tools. Your most important asset is your laptop. You can still trade on your phone, but a laptop is more convenient. Ideally, you should get a light laptop that is reliable. Getting a product from an unreliable seller or brand can lead to some issues down the road. Fixing a laptop while on a commute is not the best experience you could get.
Find the right broker. Once you have your laptop, you will have to select a forex broker. The most important thing to check is whether the broker is part of a trusted regulatory body. The USA, the UK, Australia, Canada, France, Germany, and Switzerland all have regulatory bodies. These organizations ensure that your money is safe with a particular broker.
Select your trading platform carefully. You should also consider the transaction costs. These may either be in form of spreads or commissions. Another important thing to consider is the trading platform. Ideally, the broker should provide all important information on the platform. It should have timely news feeds and charting tools. These resources will help you trade more accurately.
Keeps tabs on financial calendars, news, and websites
The beauty of trading forex is that you can trade any currency pair from all around the world; therefore, with all this freedom, being a digital nomad will absolutely be an easy thing. The more information you have on the FX market, the easy for you it will be when trading. To have all the current information, make the forex calendars, financial news, and websites your second friend after your mobile trading app. Forex news and calendars are essential for you to become successful in trading forex.
Take your time
You are looking to be a digital nomad by trading forex. Well, being a digital nomad in the first place requires money. Also, the FX market is not a stable market as the prices may fluctuate at any time. Therefore, the right thing to do is to set a budget and invest in small amounts. As a beginner, you’ll probably be curious and tempted to throw all your savings in trading forex. That will likely increase the risk of losing your money. Take your time and start small for you to become a successful digital nomad.