Is Forex Trading a Good business, Do you recommend Forex trading for us? WELL, If you are in the dilemma of whether to start forex trading; or asking;
Is forex trading a good business? The answer is absolutely yes. This business is a profitable wellspring of income. Many people take forex trading as the primary way to make money, and they have succeeded, and that is because of:
- A vast amount of Technical and Fundamental analysis in the market,
- Tremendous leverage allows you to 100x your money.
- High liquidity In The Market.
However, there is a lot of false promises and misleading information in the market.
Especially those ads that we all saw one day (How to earn 100,000$ in 2 weeks, someone wins 50,000$ in 5 days …etc)
To succeed in forex trading, You must treat it like any other business.
This is a risky business if you don’t take the right precautions.
Can you be rich in 24 hours? Is it Possible?
To set your expectations right. It is not possible to put $50 in a forex business aiming to collect $20,000 within a short time-frame. Although it is one of the best sources of income, not every trader will profit in this business.
If you are thinking of trading forex shortly, you have to master two main things to make it work.
- A workable strategy that suits your lifestyle and your busy day.
- Risk management tactics that match your strategy and keep your profits more than your losses
P.S Some traders who do forex trading businesses end up losing money, mainly because they apply poor trading strategies and almost no money management in their trades at all.
In a Nutshell:-
forex trading is an investment that can increase your income. But, we always suggest that you have a good source of income before you start trading and then build up your strategy as you gain skills while trading.
What Should I Do Before trading?
Understanding the market.
Understand the basics of how the market works;
It is crucial to understand what is going on in the market and what is the news that is moving the price
Most of the time, you will not be able to understand what is going on. In this case, you can always skip the trade. Do not start trading unless you know precisely why you are trading and in which direction you are expecting the price to go. ( You can use either technical or fundamental reasons)
if you feel you understand what is going on with the trade, you can go for it.
Important… Start this business with the amount that you can bear to lose. Do not trade with your daily expenses money or the money for the rent or something.
Have a Good Trading Strategy.
Trading forex requires a trading strategy that suits your daily routine and discipline to implement the strategy.
It is essential to follow the strategy that you can adopt. In most cases, you realize that a strategy works well for specific currency in a given market, while works differently in another market.
So, develop your strategy as you gain experience.
P.S. Always stay focused and avoid trading with moods,
For beginners, they can trade on a demo account for some time to understand exactly how the market works. Then, you can get into a real business.
Reasons Forex Trading is a Good Business.
The reason for forex being a good business is the leverage that is always available.
There is no bank in the world where you can borrow $100,000 without a track record. Forex trading gives a considerable amount to borrow in your trades. The only deposit required is 1% -2% of the borrowed amount.
Quit At Any Time.
No Restrictions to quit, No commitments to stop your business, No Salaries, No rent.
YOU SAY STOP. THAT IS IT
you have an option to stop forex trading immediately. There are certainly no complicated forms to fill and no waiting to settle your expenses.
The business gives you full control of each stage. You can quickly adjust your business position if you want. And if the business fails or you mess up in any way, you will only lose your trading budget, which is minimal comparing to other businesses.
Work Any Time Anywhere.
The forex market is always active 24 hours, five days a week.
This allows you to enter and exit a trade whenever you wish. So, you trade when you have time to do so.
If you have commitments throughout the day, you can create time around the evening and trade in the market. With forex trading, you don’t have to worry about closing and opening time. A trader can choose what time to trade.
The business gives you opportunities to trade anywhere on the planet as long as you have a computer or smart-phone and a steady internet connection. You do not need to enter a trade from a permanent place. Forex Trading can be done from any location, including home, office …etc.
Require Small Capital to Start
You do not need to have a huge capital to start a forex business.
A small amount of money will do the work. You can create a forex trading account and start trading with the price of one hotel night.
Many individuals started the forex trading business with as little as $100. BUT… to be profitable, you need to be patient, smart, and consistent.
The good thing with forex business is how you can make a lot of money in a single day if you can trade wisely.
Success usually is possible in Forex Trading.
Many people who start forex trading business as a part-time end up quitting their 9-5 jobs, and focus their mind on forex business since they have made higher incomes than what they use to do.
The Liquidity is High.
The forex market is among the best liquid markets worldwide.
The liquidity of any commercial market is known by the total number of people who are buying and selling in the market.
The forex market in one of the highest liquidity markets in the world, as it has many a lot of buyers or sellers who active 24/5. This allows traders to have better chances of winning trades to buy or sell the currency pairs.
Anyone Can Start (No Collage degree Required)
Most of the businesses need graduation certificates from certain universities
But that is not the case in forex trading. Regardless of how knowledge and experience you are, the business is open to any trader, although having experience and knowledge is an added advantage.
If you are a beginner, start the business with small capital and then raise your budget slowly as you are gaining knowledge and experience over time. The Forex business has numerous opportunities to grow.
How Profitable is Forex Trading Business?
The answer to this questions depends on the trading capital and the risk you are willing to take.
P.S. Forex trading profits are usually measured based on a percentage of your capital.
What does that mean? You might say…
Forex trading is based on a percentage of your trading capital. Usually, we trade 2% of the total money.
I.e., if your capital is 100,000 and you won 5 trades of 2% each in your first month, then you will make 10,000$/month.
However, if someone else traded with 1000 Capital, and won the exact number of trades, he will make 100$/month only.
Both won the same percentage. but the amount is different
Is forex trading a good business? Yes, it is. To prosper in the forex trading business, you need first to know the market and essential factors for success.
When approached as a business, forex trading might be a money-spinning business, but reaching a level of success is a big challenge and takes a lot of time.
What makes one succeed in this business is by getting familiar with the forex market and making a decent decision. This can be achieved by examining the market and knowing at what time to risk.
In my opinion, forex trading is the best business and an excellent source of income. It only needs hard work and commitment to success.
What is the point that makes you feel like you want to trade forex? Is it because is it the high-profit business, or because it has enormous leverage that you can not find in any other business.
Please let us know in the comments below.