While some will argue that statistics can be used to prove anything, more often than not they offer us a fascinating insight into a specific trend. In some instances, different statistics can even be combined to educate us further and showcase just how things will be done in the years to come.
In the case of freelancing, for example, we have seen the rate of self-employment increase by 25% since 2009, while it is estimated that half of the UK workforce could be contracting by the year 2020. We have also seen daily trading volumes in the forex market consolidate at $5.3 trillion recently, and when considered together these statistics suggest that a growing number of freelancers will turn to this sector in the future.
How to Become a Successful, Freelance Trader
With this in mind, the question that remains is how those who aspire to trade currency as a freelancer can make their dreams a reality? Let’s take a look at the following ideas:
- Understand the Market and Build Your Knowledge Base
As an aspiring forex trader, you require two key attributes if you are to achieve success. These are knowledge and determinism, which enable you to learn about the fundamental mechanisms of the market and understand the underlying laws that govern change respectively.
In terms of the former, there are plenty of resources that you can use, from offline literature and courses to online (and independent) webinars. These resources will provide you with theoretical knowledge pertaining to the basics of currency trading, as well as the subtle complexities of the forex market itself. You can then apply this practically through a demo account, which enables you to hone your trading strategies in a real-time but simulated market environment that provides actionable insight.
This also leads us on to the topic of determinism, which relates to the fundamental laws that govern change in the forex market (regardless of the prevailing, macroeconomic climate). Through practical but risk-free trading, you can understand how the aggregate economy and specific trends impact on your trades, which will turn inform your decisions in the future.
- Create the Capital to Launch Your Trading Career
While you may be freelancing rather than launching a PLC business, you will still need start-up capital to fund your endeavours. As a freelancer, however, much of your capital can be set aside for investment purposes, rather than sinking the majority into commission fees or the creation of a business.
Fortunately, the cost of trading has been dramatically reduced in recent times, thanks primarily to the rise of online platforms and the impact that they have had on traditional brokerage services. This means that you may only need £300 to initially trade forex, although you may want to commit more from the outset or at least have additional capital in reserve.
However much you use, however, be sure to adopt a responsible approach to trading the markets. More specifically, strive to use only disposable income that would otherwise be committed to savings, rather than spending money that would otherwise fund your typical cost of living.
- Leverage Technology to Optimise Your Trades
Once you begin to trade and apply your carefully honed strategy, you will need to use the right vehicles to complete well-researched and real-time orders.
We have already touched on the role that online trading platforms play in connecting you to the forex market, but it is also worth selecting a provider that also offers an affiliated mobile app. Take ETX Capital, for example, which has its own branded application that features the very latest HTML5 updates and benefits. This means that the app performs seamlessly on all smartphones, helping to optimise the timing of your trades regardless of your physical location.
These apps also offer you access to comprehensive suits of analytical tools, as you look to choose a selection of data-sets and charts that inform your trades accordingly.