6 Challenges Home-Based Forex Traders Experience
How To Get Over The Challenges?

More and more people now have access to forex trading platforms thanks to technological advancements. These days, you only need a small deposit and a few days to open your trading account. Due to this, some forex traders have decided to make trading their primary source of income, while others have been motivated to only trade part time.
The six challenges that affect home-based forex traders are:
- Establishing a workplace
- Too many distractions
- Problems with adapting to different time zones
- Setting conditions favourable to trading
- Having enough investment
- Establishing boundaries
Establishing a workplace
Creating your workspace is the first thing you should do to trade from home. It's unnecessary to trade from your bed or the dining table that your children just dumped their spaghetti on when trading from your house.
You'll need to set up an office space because you'll compete in the same markets as office traders.
Get a space where your housemates can't easily disturb you, like a room or a corner. Next, get the tools you'll need for trading, including a quick internet connection, a big trading desk, a comfy chair, and however many monitors you require for your trading strategies.
Too many distractions
There are distractions everywhere. The biggest difference between trading from an office and trading from home is that your office has more comforts and distractions you have at home, such as your TV, bed, and other amenities. Concentrating on your usual trading news is difficult if you're watching a Netflix season finale. Similarly, if your mother asks you to run errands or your pet requests attention, you won't be able to complete your trades. Focus is necessary for consistently profitable trading. If you want to execute your trades flawlessly, reducing distractions is essential.
By creating and following a trading schedule, you can reduce distractions. Determine which trading sessions fit your schedule and estimate the time required for your trading-related tasks. If necessary, schedule some "me-time," but make sure that during your designated trading period, all you do is trade.
Adapting to different time zones
Not all traders can trade during the trading session of their choice. Most home-based forex traders work part-time jobs and can only trade after finishing their full-time shifts. This becomes a problem when their regular trading schedule is impacted by a change in the clock (such as the DST adjustments in other nations).
Making plans in advance for time changes is one potential solution. Create a new routine for days when you need to get up or go to bed a little earlier or later to trade the events you want. If that doesn't work, you might look for alternative strategies that function well during the trading sessions that coincide with your trading time.
A setup that is favourable to trading
The advantage of working in a trading-friendly environment is one that office-based forex traders enjoy. They have a quick internet connection, full monitor sets, and a TV that broadcasts trading-related news continuously. More significantly, they can compete with or bounce trading ideas off of other forex traders in the room.
It can be challenging to create a similar environment at home. As vital as it is to set up an office and a trading plan, creating an environment where you can enter the trading zone is more crucial.
Include your trading environment in your diaries as one method to improve this. Does trading while no one else is nearby help? Do you prefer to trade alone, or do you do better if you consult other traders first? Should you do all your trading tasks in one sitting, or do you focus better after brief breaks?
Make Certain You Have Enough Cash
With enough cash, your trading would have more liquidity. Cash is the fuel needed to start trading. Cash is also a safeguard against losing deals, which is more crucial. You won't be able to sustain a brief drop without a cushion, nor will you be able to give your position enough breathing room when the market swings back and forth with new trends.
Cash cannot be obtained from sources you need for other significant life events, such as your college savings plan for your children. Money held in trading accounts is capital at risk. This sum of money, sometimes referred to as risk capital, is one you can afford to lose without impairing your way of life.
Think of trading money as saving for a vacation. You accept that the money will be wasted when the vacation is over because you know it will. Trading involves a significant amount of risk. Treating your trading capital as vacation money does not imply that you are not committed to keeping it safe. Rather, it means releasing yourself psychologically from the fear of losing so that you can execute the transactions required to increase your capital. Make sure the appropriate trading positions don't conflict with your personality profile by conducting a personal SWOT analysis once again.
Calculate your risk-to-reward ratios and establish your boundaries
Where you would exit your position if the market turned against you should be the first line in the sand you draw. Where you put your stop loss is here. Determine how many pips your halt is from your entry point. If you are trading a regular lot and the stop is 20 pips from the entry point, then each pip is worth roughly £10. If you trade cross-currency, use a pip calculator to make determining the value of a pip simple.
Determine what percentage of your trading money would be your stop loss. For instance, 2% equals £20 if you have £1,000 in your trading account. Ensure that your entry point and stop loss are not more than £20 apart. You are using too much leverage for your available trading capital if 20 pip equals £200. It would be best to switch from trading in conventional lots to mini-lots to get around this. A mini-worth lot of pips is roughly £1. Therefore, the maximum loss should be £20 to keep your 2% risk-to-capital, which calls for you to trade just one mini-lot.
Now mark a profit target on your chart by drawing a line there. Make sure this is at least 40 pip distance from where you entered. You will receive a 2:1 profit-to-loss ratio as a result. Given that it is impossible to predict whether the market will reach this level, make sure to slide your stop to break even as soon as the market moves past your entry point. In the worst-case scenario, you will lose your transaction and keep all of your capital.
Don't lose hope if you lose on your first effort. Your second entry will be accurate. The saying "the second mouse gets the cheese" is accurate. You will enter the trade to test that level to see if the market will trade back to your support or resistance. This frequently happens when the market bounces off your support if you buy or retreats from your resistance if you sell. Afterwards, you can reap gains a second time.
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