For FIFO workers, one of the best things about the job is the money made while you’re away from your home (and often, this can be the ONLY thing that keeps you going back). FIFO salaries are a great way to get ahead financially, but if you don’t have a solid financial plan, you might end up back where you started before your first stint onsite.
Being able to manage the money you earn while you are still working is important. You need to focus on your family, properties you may own or rent, as well as any investments you might have, so making sure you can afford to take a well-earned break at the end of a contract is even more important. So how can you turn the money you earn into even more money?
Two words: Forex Trading.
Most people start out with trading Forex through curiosity, and whether it’s luck or intelligence that gets you though, it is possible to make decent profits, if you look at percentages. So how does a FIFO worker turn a profit on trading foreign exchange rates?
According to Adam Truelove, Trading Floor Manager at Learn to Trade, first, you need to know the basics.
“Forex Trading is a part of the foreign exchange market, which is a global decentralised market for trading currencies,” he said.
Forex Trading is the largest trading market in the world and it works by buying and selling country currencies, and trading them against each other. Currencies are always traded in pairs, and the Forex market determines each currency’s value by setting the market price of the currency when paid for with a different currency.
“Forex trading can be one of the most exciting, yet emotionally draining experiences you can involve yourself in, however with the right knowledge and tools, you can be making some tidy profits, and on a daily basis,” Mr Truelove said.
“Follow these 10 lessons and you’re on your way to starting your trading journey!”
- You can’t control it, but you can make money from it
Compare the market to an ocean. You can’t control the wave, but you sure can ride it.
- Create a stop loss point
You must create a specific point where your losses will be stopped. It’s the amount of currency you’re willing to lose in that trade. Most beginners won’t use stops, and they usually go broke within a couple of days
- Create a “take profit” point
Make a point where your profit will be cashed in. Take a win for what it is. Don’t assume that things will run in your favour forever
- Control your emotions
There is no room in Forex Trading for emotions. Those who can master emotional control are typically the winners.
Greed rears its ugly head when the trade is going well, but a trader who won’t cash in when the going is good, usually ends up a loser.
Fear rears its ugly head when you close a transaction too soon, before you make enough profit from trades.
- Take risks
You must take risks, but always have a calculated risk management plan.
- Know how to get out of trouble
Hoping for the market to recover in a losing trade can be fatal. The sooner you can get out the smaller the losses will be.
- Learn about divergences
A divergence is formed when a price appears to go up, but something tells you that it is not right.
- The biggest lesson in Forex Trading of course, is BE PREPARED.
As a FIFO worker, you don’t have to focus solely on long hours and tiring weeks to get ahead in life. Get your head start in Forex Trading.