Trade for Yourself or Trade for Others?

The modern Forex market offers a great opportunity for everyone to try out an independent lifestyle and become self-employed as a trader. The potential freedom — both financial and temporal — is perceived as one of the most important advantages of currency trading.
At the same time, many traders become fund managers, trading not only with their own money, but also risking others’ capital, taking additional responsibilities. The lack of own funds is a common reason that makes speculators go into management industry.
Other FX traders prefer to get employed by a large investment company that will offer funds, provide guidance and set limits. That is a completely different story — the trader loses one’s freedoms, but in return is rewarded with a capital to trade and a more stable income. Additionally, it is believed to be psychologically easier to trade within a company as they set rather strict rules for your stop-losses, risk tolerance and position sizes, making it almost impossible to over-trade or fall into a greed trap.
Lastly, few of the traders show enough leadership qualities to start managing the whole company’s portfolio and thus other Forex traders. It’s a bit different thing than the usual trading, as the main purpose of such portfolio mangers is to guide other traders, they rarely open positions themselves.
Of course, one should also consider own personality when deciding how to work in Forex market. Personally for me, it is much more comfortable to stay as a self-trader and not to take any additional responsibility connected with the managed money. And how about you?

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If you wish to share some insights regarding your vision of the ideal Forex trader work organization, please feel free to do so using the form below.