Career Opportunities for Forex Traders

 

 

 

 

I am often asked by people who are interested in learning to trade what the career opportunities for forex traders are.


In this document I shall try to explain the career opportunities for a forex trader in South Africa.


I believe the information will be of value for people who are located in other countries as well.


1. Trading your own account
2. Trading other people’s money
3. Trading for a company
4. Becoming an independent forex trader

 

1. Trading your own account
 

There unfortunately is no quick fix or recipe for learning to trade successfully.


In order to develop into a successful trader, you will have to spend many hours studying graphs, searching for patterns, testing indicators, applying and developing your trading method and trading skills.


Naturally if you started your trading career by doing a high level training course like the Forex Masters Advanced Training Course, you would have saved many hours (and years) of experimentation. There is absolutely no need to reinvent the wheel. Use the skills and knowledge of advanced traders to your benefit.


You will be able to immediately start at a higher level than the average trader because of your much better insight into market moves which will enable you to identify perfect trade setups very quickly and accurately.


A successful strategy will unfortunately not guarantee success!


They claim:


Success in trading is
80% psychological
and
20% the trader’s methodology
 

Knowing a good strategy is not enough to turn you into a good trader.

  • You will now have to learn to work with strict discipline.

  • You will have to develop patience, and lots of it because you may have to wait for hours at a time to find a perfect low risk – high probability entry point.
    Some people told me that I must understand that they are very busy, they do not have the time to sit and wait for the graphs to move!
    I tell them that they must not see the time they spend waiting for the ideal opportunity according to their trading rules as time that is wasted. It is actually time invested into a successful trade! Waiting for the perfect moment before you enter a trade is an extremely important part of a successful trade.

  • You will also have to learn to cope with stress. If you cannot develop the habit of sticking to your rules under stressful conditions, you will start to make mistakes. These mistakes will result in losses. The losses will result in a loss of confidence. People who lost their confidence find it extremely difficult to trade successfully.


If you work hard to develop as a trader, to understand the markets and market moves, to identify trade opportunities with pin-point accuracy, your success rate will start to go up, your confidence will increase and it will become easier to trade.


You will start to experience financial independence.


You may get to the point where you decide that you do not need to work for a boss anymore. You want to become a full time trader.


Please make sure that you have enough cash in your account when you get to this point. If you do not have enough margin (= money) in your account, you need to aim for very high targets every day in order to generate enough income to sustain your level of living. The stress of reaching this target may become unbearable, with the result that you may start to make mistakes, lose some money, and lose your confidence. Trading will become very difficult.


My advice to all people is to trade part time as long as possible in order to give yourself enough time to develop into a good trader without experiencing a lot of pressure.


If you have enough money in your account, even small targets will make a lot of profit and it will be much easier to reach your monthly target.


The benefits of trading your own account are numerous:


• You are your own boss.
• No more getting stuck in traffic every morning,
• No more frustration of working for a boss.
• No pressure on you to please other people!
• You can work whenever you want to.
• You can take leave whenever you want to.
• You can go wherever you want to, and do what you like most.
 

You will have to agree with me: This is the ideal situation!

One problem however is that if you do not trade, there will be no income!


• If you go on leave, or get sick, there will be no income and you will have to spend some of your saved money.
 

You can now even consider it to make part of your money available to professional traders to trade it on your behalf. (Info on this website)


• You will experience that there is now a lot less pressure on you to perform.
• You are not forced to make a lot of pips when the market is slow.
• If you go on leave or get sick, there will still be an income.
• By spreading the risk, the trading became safer.
• You can relax and enjoy life!
 

My recommendation to people is to trade their own money and become financially independent.
 


2. Trading other people’s money
 

People often ask if they can start trading other people’s money and take commission on it. This way they believe they will generate a lot of income for themselves very quickly.


In South Africa you are not allowed to trade other people’s money!


If you want to trade other people’s money and take commission on the trades or do profit sharing, you will have to register at the Financial Services Board (FSB) for a 2.12 license which will allow you to act as fund manager and do discretionary trading.
 

In order to get this license you:

1. need to have certain qualifications (example: B.Com degree),
2. have to do examinations at the FSB,
3. need a minimum of 3 years of experience in trading managed accounts (as trading on behalf of other people is called).
 

It is extremely difficult to obtain this license. It took me more than 5 years to qualify for this license.


The Financial Services Board is very strict in this regard. A person trading other people’s money in South Africa without this license can receive a R1 million fine or a 5 year’s jail sentence. It is not worth it to take a chance.


As long as everything goes well and your friends keep quiet, there may be no problem.
Unfortunately if anybody tells anybody else and the news reaches the FSB, or if you lose some money, you will be in serious trouble. You will be taken to court and can get the fine or jail sentence.


Stay within the limits of the law!
 


3. Trading for a company


There are not many companies in South Africa involved in forex trading. Therefore job opportunities in forex trading are scarce.


If you can find a company and ask them if you can trade for them, they will first enquire about your experience. It is likely they will ask to see your FSP 2.12 license. If you cannot produce one, you will be told to go and get this license.


If you contact the FSB with the request to register for the FSP 2.12 license, they will ask about your experience in the trading of forex managed accounts.


The problem is:

• You cannot trade forex managed accounts without the FSP 2.12 license.
• You cannot get the license without having at least 3 years of experience in the trading of forex managed accounts for a registered company in possession of this license.
• You will find it extremely difficult to get a job trading forex managed accounts in South Africa if not in possession of this license.
 

In my opinion trading managed accounts on behalf of a company or on behalf of clients is too risky. Under the current law it is very likely that clients will sue you for losing their money. You will have to refund them and may go bankrupt in the situation.
 

Working for a company as a trader is not the best solution.
 


4. Becoming an independent forex trader
 

Companies involved in the trading of forex managed accounts realised the risk involved, and started to adapt the way they operate.


Instead of accepting the risk of trading managed accounts where they need a license, they started to use independent traders to trade the money of interested people. They call this form of trading Auto trading, Copy Traders and other names.


How does it work?


Successful traders can register with certain forex companies / brokers as independent traders. Several of the companies listed on this website have this option available for successful traders.

  • You will have to open a live trading account with such a company, and trade your own live trading account for a period of time in order to build a record and reputation.

  • The company will publish your results on their website where it is visible for clients.

  • If they are impressed with your results, they can now link their accounts to your account and make some of their money available to you.

  • Every time you activate a trade, a trade will be activated on the linked accounts as well.

  • If you make a profit, they will make a profit. If you make a loss, they make a loss. They cannot complain. All they can do is remove their money from your account if they are unhappy with the results.

  • Because it is international people and you do not deal directly with the clients, the SA law has no effect. You do not need the FSP 2.12 license for this!

  • You get paid for every trade you do. You have to do at least 10 trades per month. There is no maximum limit.

  • The more you trade and the higher the profit, the more people will link their accounts to you.

  • At eToro you will get $500 per month for every 50 people that link their account to yours. If you can get 1,000 people to link to your account, you will get $10,000 per month which is more than R80,000 at the moment (exchange rate of R8.00 per US$).

  • You can stop trading any time, but then people will remove their accounts and it will take time to build a certain number of followers.

The income potential is really huge! You will struggle to beat this on your own.


So use the structures that are already in place, and get a company like eToro to market you.

 

Why did I recommend eToro for this type of trading?

 

A company like Insta Forex has more than 7,000 traders waiting for clients to invest with them. It will be really difficult to stand out and attract enough attention here.

 

At eToro it may be much easier to attract a lot of attention.

 

I have been informed recently by my eToro consultant about a guy who registered as a guru 5 weeks ago, and succeeded in the 5 weeks to get more than 1,000 followers (= people who linked their accounts to his). In less than 2 month’s time he is generating over $10,000 per month for himself as a passive income, on top of his own trading profits!


NB: If you are interested, use this link to apply for an eToro account:

 

Click here to apply for an eToro account!


 

 

Please let me know if you found this article of value, or need any additional information.

 

You are also welcome to contact me if you need more information on demo trading, forex training or the opening of live trading accounts.

 

I will do my best to assist you.

 

 

Johan

8/2012

 

Contact me for more information!

 

 

OOPS! You forgot to upload swfobject.js ! You must upload this file for your form to work.

 

 

 

Back to the Top


Disclaimer

 

Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

 

Copyright 2013, FOREX MASTERS