Welcome once again to my domain of Forex explanations. Let me take a quick guess again. You were watching a YouTube video, just relaxing and maybe you were exposed to some information about Forex. For example, an influencer was hired by a broker to promote them. So you start searching the web for information about what Forex is. Finally, you find the info, read through most of it but still don’t understand why would people subject themselves to the trading aspect. Well, wonder no more as we’re about to discuss the big question of “Why Trade Forex?”.
Before we start, it is essential that you know what Forex is, how it works and what are its features. Lucky for you we’ve already made articles about them so it would be my humble suggestion that you breeze through them real quick and get back to me, don’t worry I’ll wait………. Back so quick? Ok let’s begin with this article, get your skeptical glasses on because You’ll need to process a lot.
The Freedom of Forex
Now, this part can be quite specific to people unhappy with their jobs, but you lucky ones out there can consider this as well. Having to get up every single day early in the morning can be quite stressing for you, maybe you like to sleep in? Or just hate the commute to work? Then this information will apply to you.
There is no doubt that getting a job you love is pretty hard these days. For example, more than half of University graduates don’t follow their profession and rather diversify into fields where they didn’t need degrees in the first place. Luckily the 21st century with its digitalized world has been able to tackle this problem at a reasonable scale, but there are still remnants.
The reason why you should start trading Forex is you’ll have a lot better schedule, tailored towards you. Now, this may seem like shameless advertising, but it is honestly not. It’s just how it is. When you think about traders, they’re not the guys that walk around with suits all day, attending serious meetings and looking at charts while handsomely staring into the camera. No, most traders are just regular people like you and me, who stay at home most of the time, in their pajamas, or even sometimes naked and just look at the screen. We already have a lot of differences, but there is a similarity. You see, both the guys you think about, the one with the suit and the sweatpants trader look at charts most of the time. There’s just no avoiding it, you have to look at charts to be able to predict the prices.
Now even though I’m trying to create a comfortable situation here, there is pretty much nothing comfortable about Forex trading. So naturally, you’d have a question of why trade Forex then? In short, it’s not fun, it’s work as anything else. Understandably you don’t want to spend your whole day looking at a screen and doing the math, but for most people, that’s the reality they live in, or more correctly, have to live in. So even though Forex may not be the most fun activity you can devote your time to, it’s definitely the creator of one of the most comfortable environments, in your own house.
Making money with Forex
Forex is not a fun activity as we’ve already mentioned. However, it isn’t supposed to be. It is a serious job that helps you make money online. Sure there are a lot more places for this like, YouTube or freelancing, so naturally, you get the question “Why should I trade Forex?”, the reason is that those activities mostly require skills that sometimes take years to perfect. Who has years to prepare am I right? We want to start right now!
Forex has got you covered in starting right now but look at that “right now” as a week or so because you’ll still need some research and learning of how it works before you start. Even though the ads that you’ve seen on the internet for Forex seem quite fake, they’re actually not fully fake. Yes, it is possible to make a living with Forex and most definitely it’s possible to have it as a side hustle.
Now there are a couple of things to consider here, I’m being honest with you here. You won’t be able to make a living from the very beginning. There, I said it. Making good money with Forex requires, good money to begin with. Although it is quite possible to build up your account with a minimum deposit, it takes nerves, time, dedication and a whole lot of coffee.
But what are the connections of the first point and this one? Why should you trade Forex? It’s the fact that you don’t have to leave the house in order to make money with Forex. You don’t have to attend long conferences and lectures to truly learn it. You can do it by yourself in the comfort of your home, all you need is a screen and internet connection.
Oh the things you’ll learn
No matter what job you do, there is always some useful information you can learn. Even a janitor can learn how to clean more effectively, which he can later apply to his house, or even find some issues with janitorial guidelines, make his own company overcoming those problems and become a millionaire, but I’m getting ahead of myself.
Think about it, what was the most useful thing you learned at your job? No seriously let me know. For me, it was becoming more engaging. The same thing happens with a Forex trader when he spends a considerable amount of time looking at the market. So personal development could be another reason why you should trade Forex, isn’t it? let’s elaborate.
One of the best things people learn when trading Forex is the economy and how it shifts. For example, if you want to trade Forex you will always have to be in sync with the news, you’ll always have to be reading. Even if you miss a news article and see a massive change in the market, you can always track it to a news article that could be about a war starting or some company selling its assets. What I’m trying to say here is that you’ll be able to rely on yourself for analysis after spending time on the market, which is one of the primary reasons why you should start trading Forex. No longer will you have to listen to experts and their opinions on night shows, hey maybe you’ll become one yourself. Furthermore your new analytical skills will enable you to be an influencer, for example when there are elections and a politician promises something unrealistic, you can influence your peers with a lot more confidence that the man (or woman, no discrimination on this website) is lying, sure its like a party trick, but it can be applied to a potential profession as well.
In addition to becoming more knowledgeable to the economy, there will also be character development. For example, you’ll become a lot more analytical, looking into details of everything, trying to find the truth and nothing but the truth. Also, there’s the case of becoming more confident in your decision making, becoming more quick and efficient. In conclusion, you’ll gain more than you’ll lose, sure it can be taxing on the nerves, but isn’t everything like that?
Why trade Forex from a trader’s perspective
OK so you don’t really care about character development or learning something new, you’re just interested in making money and having it be as comfortable as possible, so why is Forex trading good for this?
One of the primary examples is the accessibility of the market. You’ve probably heard of stocks, right? you know, shares of companies that you can buy. But did you know that you can only buy shares of companies from their local stock exchange? Yes, the stock market is not decentralized, so it may seem a lot harder for you as an Indian for example to trade United States stocks because of the time difference. Because by the time you’re up and most productive, the US market closes down. In Forex, that’s not the case because of the decentralized market.
You see the difference is that, when there is a currency pair of the USD and Euro, it means that both of the parties need to operate it somehow and give you the service. Therefore the market is open 25/5 sometimes even weekends because everytime a broker closes in the US another one opens in Japan and so on and so forth. Besides, you don’t have restrictions on the assets you can trade. There’s no US exclusive or India exclusive currency pairs, they can be found pretty much everywhere.
Scaling with Forex is pretty easy. It’s easy with pretty much any other market as well, but that’s not the point here, this part isn’t a comparison. Imagine if you are skilled enough that you can make $100 a month in profits with Forex and you use only $10,000 as a deposit. What would happen if you increase that deposit to $100,000? Exactly, your profits will increase as well, so naturally, the scalability of the market isn’t too complicated.
What I like about Forex is also the fact that you can start off small. There are brokers out there that will allow a minimum deposit of as little as $50. That is something you can definitely risk. Now compared to stock markets you’ll find it hard to find a stockbroker offering a minimum deposit of less than $500. Now, which one would you risk more? A Friday dinner or a vacation overseas?
Why you shouldn’t trade Forex
Now that I’ve talked about the good side of Forex trading, it is time to talk about the risks involved. Like any other endeavor with money, there is a risk, meaning that there could be a moment where you can lose it all. But this is just a financial standpoint. Why should you avoid trading Forex for your own well being?
Well, first things first, Forex trading is very stressful, the amount of concentration and decision making you need to do within a day can easily overwhelm you. There are numerous cases about people just not being able to handle the pressure and just quitting just because of their nerves. But remember, nobody is forcing you to sit at that desk (unless that’s your job of course), you can always take a breather, take a day off or just go on vacation whenever you like. As a matter of fact, I encourage a break from time to time.
One more thing to look out for are the scammers of the industry. Service providers who don’t really care about your losses. However, that’s where your newfound analytical skills will come in handy when you look into them and review them.
Additionally, if you are a person who has problems of making a decision on the spot, then Forex trading is not recommended. The speed at which you make a decision to buy can determine your success. If you can’t handle the decision-making process, then you’ll definitely suffer some losses, which leads me to my next point.
If you get easily upset, I would also not suggest Forex, because of how much it can impact you. Nobody likes to lose, let’s face it. No matter how much you learn from the experience it isn’t a pleasant one. Now does really resonate around constant fluctuations between profits and losses, so it could really take a toll on your state of mind.
After so many facts and suggestions, I think its time we wrapped this up don’t you think?
I tried to keep it as real as possible, to help you see why trading Forex is good, but the bad and ugly sides as well. Please try to consider all of them and make the decision on your own. Forex is not a commodity that you choose to buy, it is a lifestyle that can potentially harm you. But if you devote your time and nerves you’ll be able to find some benefit in it.
As with everything else, Forex takes patience. The more patient you are the smoother your experience will be. However, I encourage you that you take all that I’ve talked about with a grain of salt, try to go out there and prove me wrong, it will just add more to your knowledge and let me know that my mission with this article was achieved.