Five reasons to start forex trading - The Advocate

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Before committing to any type of investment, a trader must consider the potential drawbacks and advantages of a financial market. That's the reason why even if the financial markets have actually become accessible to more people, it's still challenging for many of them to select the most suitable one.

Enter forex trading. It's a highly profitable activity that doesn't require any difficult prerequisites. Forex, also known as foreign exchange, is a decentralised financial market where one could trade currencies.

It's the most liquid and largest market in the world right now, with volume for daily trading reaching up to or even more than five trillion dollars.

If you aren't trading in any forex trading platform yet, below are the top five reasons why you should consider doing it now.

1. Small start-up capital

With a fractional fee, anyone can open an account and start trading. This is because the forex business doesn't require any huge investment.

It allows you to start low and grow big through forex affiliate programs. As a trader, you only need to be patient, smart, and consistent.

There are people in the field of forex trading who started with a hundred dollars and grew it to seven figures. Indeed, the sky is the limit.

2. Flexible trading hours

If you have other responsibilities from 9 to 5 during the day, it's possible to create some time in the evening and be able to trade in the forex market, thanks to the platform's flexible trading hours.

Anyone can trade conveniently 24/7, which is beneficial for individuals who have a busy working schedule. Forex is actually one of the very few financial sectors that allow traders to trade throughout the day.

If, for instance, you can't trade during the night because of some other commitments, you can also do it during the day.

All you need is your smartphone or computer, and Internet access, and you can, then, start trading anytime and anywhere. You can trade in your home, office, or even in a restaurant.

3. High profitability

Despite starting forex trading as their part-time business, many people ended up quitting their 9 to 5 jobs to focus on the forex market.

Why do you think they've decided to be full-time forex traders? It's primarily because they've earned good profits - more than they expected.

The profitability rate is high in the forex market if you win your trades. It's one of the best things about starting forex trading. It has the potential to make anyone a millionaire overnight, as long as you're trading wisely.

Invest more for you to earn more profit. However, make sure you already know the ins and outs of forex business before trading.

Remember that the only way you can win trades successfully is by making smart decisions. If you do it right, forex trading, despite being a risky business, can save your finances, especially during a recession.

4. Volatility

In any financial market, the more volatile it is, the more opportunities are present for investors to acquire and get rid of their assets.

As you probably already know, holding onto your capital in a market makes little sense if it isn't moving.

Market volatility is crucial for traders, especially since they have to acquire an asset for a favorable price and, then, sell it for a higher amount. If you're wondering how traders make money online, that's how simple the mechanics are behind trading.

Traders always search for the most volatile markets and instruments; that's why volatility is one of the forex market's main benefits.

The volatility is excellent, and traders, like you, can regularly expect to witness a price movement of around 50 to 100 pips on almost any day on one of the major currency pairs. If the quoted currency is USD, that amounts to a potential gain of 500 to 1000 US dollars if 100,000 currency units or one lot is traded.

5. Technology

The more forex trading platforms appear every year, the more regular updates for established trading software occur.

You know that software advancements make the lives of people much easier. The same is actually true with online trading.

Technological advancements, indeed, are one of the crucial reasons why foreign exchange is one of, if not the most lucrative markets to trade on. It's essential to note that many other online trading markets are still struggling with integrating technology into their platform in the best possible way.

Final thoughts

What you need is a sure source of income during these times of uncertainty.

Forex trading, as supported by the benefits discussed above, gives you the flexibility to do just that even from the comfort of your home.

It's the best time to learn how to get started with forex trading. Surround yourself with the right people and make sure to choose the most reliable trading platform that can help you embark on this exciting journey.

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https://www.theadvocate.com.au/story/6793229/five-reasons-to-start-forex-trading/

2020-06-15 03:02:00Z
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