There is no universal answer to whether or not you can rely on forex as a stable source of income, as it depends on your trading goals and objectives. Anyone that pursues trading as a career or full-time profession can be considered a day trader. As a day trader, you are required to consistently and actively engage with the markets using intraday strategies, meaning that you do not maintain a position overnight. For some, this may be why it is appealing because there is relatively less risk associated with it, as it does away with the possibility of being adversely affected by overnight market activity and unprecedented global conditions that occur after trading hours. Day traders need to have a great understanding of the markets, historical data to guide strategies and decisions, sufficient resources, as well as the ability to identify lucrative entry and exit points. Moreover, a day trader needs to be self-aware and understand that it requires financial and market knowledge, discipline, risk tolerance and consistent commitment to the task at hand.
It is important to note that some people pursue forex trading as a long-term investment, while others take on a more near-sighted approach to it. That is why clarifying your objective from the start is important because it informs all your trading decisions and your potential earnings.
How profitable forex and currency trading can be is dependent on your understanding of the markets, how actively you trade, and whether or not you are able to identify key entry and exit points and then act accordingly. Additionally, given the nature of trading and the fact that investments carry their own levels of risk, there is no certainty on how stable a source of income forex trading can be. Currency fluctuations are part of the world of trading and can never be fully predicted. While there are many success stories and reports of people who have really cashed in on forex, it is rarely ever an immediate thing. Therefore, you need to brace yourself for ebbs and flows, losses, unprecedented global conditions and periods of uncertainty. It is therefore advised to safeguard yourself in certain ways; through limiting your leverage, keeping tight stop-losses to reduce the impact of uncertainty, and using a reputable forex broker. Although there are no guaranteed ways of protecting yourself against losses, these can be taken at cautionary and preventative measures.
With all of the above in mind, it is quite clear that there is no guarantee of being able to live off forex trading, particularly as a novice trader. However, with sufficient practice, research and implementation, your earnings could improve over time and you could make a considerable amount of money. Despite this, you must think quite carefully before pursuing day trading and quitting your day job to dedicate the rest of your life to forex trading. Unlike a regular day job, forex trading has no guaranteed monthly income, yet the earning potential is endless and if done right, could be the source of generational wealth that many desire throughout their lifetime.