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What Is the Best Age to Start Trading

9:18 AM Dec 11, 2019
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Trading Psychology

A lot of factors determine what kind of trader you will become and whether you can become a trader at all. What is your personality, what kind of mindset you have, and even how old you are? Yes, your age has a big impact on your Forex career, especially if you are a newbie.

Please don’t think that there is only one age group that is capable of achieving success in trading. Each age, including yours, has its own advantages that you should know and use.

Age restrictions

Of course, the statement that you can become a trader at any age is an exaggeration. Most brokers do not accept clients under the age of 18. In some countries, the minimum age for Forex is 21 years. And there is a reason for that since trading in the foreign exchange market requires making important and complex financial decisions.

However, if you have not yet reached the age of 18 but are eager to plunge into the world of trading, you can use the time remaining until adulthood to good use. You should begin studying the theory - read books, articles, and forums. When you are 18 years old, you can proceed to practice with a whole baggage of useful information you’ve gained before.

Young Traders

Now let's talk about young traders aged 18 to 35 years. It is believed that this is the best age to start anything, and Forex is no exception. What are the advantages of young traders?

Learning Ability

When we are young your mind and heart are open and you eagerly absorb the flow of ​​information that life has prepared for you. And it works out easily and without any effort.

Forex training involves understanding and remembering a huge amount of data. In youth, it will obviously be much easier to do this.

Infinite Energy

The foreign exchange market is open 24 hours a day. Often, the best trades are available when you are already or still asleep. Moreover, your trading positions will require constant monitoring and not always at a convenient time for you, due to scheduled news releases or for any other reason. In youth, you are full of energy which will help you to stay in good shape even with such a crazy rhythm.

Dealing with Losses

Most young people don’t yet have families or children to take care of. They have no financial obligations so they take losses much easier. And this is the basis of a good trading mindset. According to statistics, young people initially have the correct attitude to losses.

Disadvantages of Young Age

It would be strange if this age group had the benefits only. Let's look at a couple of disadvantages:

  • Excessive emotionality. Emotions such as pride, irritation, and even anger are quite common for young people. Trading under the influence of feelings inevitably leads to mistakes. And even if the financial loss itself does not upset young traders, the infringement of their pride may result in the loss of their entire capital.
  • Lack of initial capital. At the age of 18, most people don’t yet have any saved funds that they could invest in Forex. And I don’t mean $100 which is allegedly enough to start trading. I am talking about real capital which can actually bring profit - $1,000 and higher.
  • Light-mindedness. Young people often don’t take even the most important things seriously. Due to their age, they prefer to spend time with friends or loved ones. Forex trading requires perseverance, discipline, and consistency. Not every young person is capable of this.

Middle-Aged Traders

Now let's talk about the benefits that are provided by the age of 35 to 55 years.

Suitable Personal Qualities

It has already been mentioned above that for Forex trading you need discipline, perseverance, responsibility, as well as patience. All these qualities people acquire with age. That is why traders over 35 are more likely to make informed trading decisions, unlike young people.

Smart Investment

By the age of 35, many people already have savings, some of which they can invest in Forex. Moreover, by this age, many people already have families that need to take care of. That’s why they are smart in their investments. When depositing $1,000 or more, a middle-aged trader will try to make thoughtful financial decisions:

  • Follow the trading plan
  • Risk no more than 1-2% of the capital in each trade

For a middle-aged person Forex is no longer a game. When you are over 35, you come into trading for profit, not for adrenaline. And this is your big strength.

Emotion Control

Life constantly teaches us to control our emotions. The ability not to show your feelings when required comes with experience. That is why the older you are the easier it is for you. It is also a big advantage you might use when starting trading at 35 and older.

Age 55 and Older

Forex is open to older people as well. At this age, you have all the benefits of middle-aged traders. Moreover, your children have probably grown up, and therefore you can manage your money and your time more freely. Yes, training might be more challenging for you but no one is stopping you from trying. If you have enough desire and patience, you have every chance to earn enough for a comfortable pension.

What Is the Best Age?

Each age group has its own advantages and there is simply no perfect age for Forex. Even if you fail to become a successful trader, in the end, the knowledge and skills you’ll gain during the trading process will be useful to you in any case. Forex teaches many beneficial things, such as patience, discipline, the desire to win. Even if currency trading is not suitable for you, you can apply the acquired skills to achieve other, more suitable goals.

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trading mindset beginners novice traders trading strategy forex trading trading plan broker losses forex mistakes trading habits women in Forex female traders risk management profit trading instruments pairs price advantages of forex leverage FXCL investments copy trading advantages of Forex social trading professional traders trading psychology demo trading buy/sell bid/ask spread Metatrader 4 market analysis technical analysis fundamental analysis trade trading platform Forex trading novice trading dealing with losses charts timeframe indicators MetaTrader 4 trading routine support level resistance level trend low-hanging fruit stop loss loss trading history long-term goals open trade close trade daily charts swing trading intraday trading scalping trading setup Forex traders bullish bearish resistance support MA 200 trend trading professional trading EMA EA daily chart weekly chart Forex news highs lows account type cent trading Mini Micro Cent Partnership commission fees trading terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro canadian dollar japanese yen mexian peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 Coronavirus epidemic macroeconomics markets CNY Bitcoin gold Jerome Powell fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart