Is CFD trading a viable work from home option?
CFD trading is increasing in popularity as a business that you can truly run alone, without answering to a boss, and entirely from home.
As forex traders, we have focused on currency markets. But we’ve written this post about CFD trading to highlight all the commodities available to trade.
All the markets are available entirely online. Trading from the comfort of your own home, without any sapping and expensive commute.
But if it were really that simple, wouldn’t everyone be doing it?
Here’s a few relevant observations:
CFD trading as a work from home option
1. You need starter capital
Starting a new business always carries a certain amount of risk. There are no guarantees of success and significant returns.
But CFD trading also requires that this starter capital remains in your trading account.
You need the capital for your margin, as you trade with leverage. So it needs to be money you don’t need to access.
And money that you can afford to lose.
2. You need time to learn
Trading on a demo account for several months is vital before you actually start trading. CFD trading is not a quick way to earn money.
With the right kind of time investment, it’s very possible to make excellent returns on your money. But you do need to invest the time in education.
There is lots of free training available. We recommend Baby Pips as a great place to start.
3. You really are your own boss
Why do many people want to work from home? Because we want a flexible schedule and the freedom to fit our work around our other commitments.
CFD trading delivers on flexibility. But it has an added advantage over other freelance job options: you really are your own boss.
This is an important factor in Forex trading at home – your successes are your own, and your losses are your own. You set your own aims and schedule, and your re-evaluate those aims according to your own performance.
Take a look at these suggestions to help you get started with trading, taking into account your personal aims and parameters.
4. Your hours are your own
An additional point about setting your own schedule: you are entirely in control of your own hours.
With other kinds of freelance work, you can often work at the time of day or night which suits you. But with trading, you can choose to work or not to work on any particular day.
You can leave it for a month, and pick it up again with no consequences (as long as you keep an eye on the news and market conditions). You don’t need to keep clients happy or keep social media ticking over.
5. It involves no phone time
For the introverts among us. Or those with sleeping babies.
All you need is a computer and a decent wifi connection.
We recommend Think Markets as your broker. You can also download your free trading platform through them. Think Markets has excellent customer service and are very easy to understand for beginners.
6. There’s no guaranteed income
This is the flip side of being entirely your own boss. You aren’t in control of how the market behaves.
Some traders talk about aiming for a small amount of money each day. It’s an interesting system and it has some positive points, but the reality is you can’t decide in advance what trading opportunities will occur.
There is a danger that it will lead to over-trading. Forcing an opportunity leads to more risk of a loss.
7. You might wait for a trading set up for days
And so CFD trading definitely requires patience. You need to have that kind of character that can wait for the right opportunity and not be tempted to give up too soon.
At times, it might not feel very successful.
If a trader sits at their computer for days on end and doesn’t trade, are they successful? Well, yes, if there weren’t the right signals to make a trade.
It takes a lot of patience and self-discipline to wait for the right trading set up.
8. You can definitely trade in your pajamas
This is absolutely true. No meetings, commuting, no talking at all if you don’t feel like it.
9. You need routine
Trading thrives on routine. Establishing your own trading strategy works best when you commit to particular pairs at precise times of the day. This is so that you get to know how the market behaves, and you can spot your trading signals when they occur.
10. You need to stay in touch with current affairs
It’s important to know what’s going on in the world, politically as well as financially, because of the impact on the markets.
Trade announcements, elections, budgetary figures all lead to exaggerated peaks and troughs. You don’t want to be caught by surprise.
We highly recommend keeping a good eye on Forex Factory. All the important events and announcements are easy to see in the trading diary.
11. You’re never just punching your time
All work has its ups and downs. But CFD trading is never boring.
There’s so much to learn. And the market is always changing and reacting to our changing political and economic circumstances.
Work at home jobs can be monotonous – it can be the compromise we make for flexible working. But trading – you’ll never just be punching your time.