For years, traders in Wall Street made a fortune by speculating the future movements in different currencies. These trades were executed by large investment banks and hedge funds, which could afford the technology, the costs of the trades, and the news terminals.
Because of technology advancements, knowledge, and competition, these services are now available to traders from around the world. These traders can now trade comfortably on their computers and smart phones with accounts of as little as $250. Why then should you consider being a forex trader?
First, it is the largest financial market in the world. Every day, traders exchange more than $5.3 trillion worth of currencies in the market. On the other hand, every day, traders trade more than $3 trillion in stocks market.
The benefit of trading in a market with such volumes is the volatility it causes as traders enter and exit trades. Successful traders benefit more when the markets are more volatile than when they are calm.
Second, there is a lot of educational information to help you guide through all this. In other words, you don’t need to have a background in finance to succeed in this. In the internet, you will find hundreds of free books and videos that will teach you on how to start and how to sharpen your skills. At EasyMarkets, we provide instructional videos and regular webinars from highly successful traders.
Third, being a forex trader means that you can make money no matter the market conditions. In this, you can make money when the markets are rising and when they are falling. If your analysis shows you that a currency pair will rise, you will make money by buying or being long the pair. If on the other hand it shows you that the currency is falling, you will make money by selling or being short the pair.
Fourth, as a forex trader, no day will be the same for you. This is because of the vibrancy of the markets. Today, your currency pairs might be going up because of a major bullish economic data. Yet tomorrow, because of another data source or political news, the pair might fall. Therefore, as a forex trader, you will always be in the learning process with new views emerging every day.
Fifth, being a forex trader is an ideal thing if you are looking for a part-time work to supplement your income. While learning to trade will be a long process, once you master the skills, it will be an easy path for you. Better still, using free tools such as stop loss and take profits, buy and sell limits, and buy and sell stops, and algorithmic trading, you don’t need to watch your trades as they happen. With EasyMarkets, you can automate your trading with ease.
Finally, the forex market is ideal if you want to make money while removing the commissions. In the traditional markets, intermediaries take a cut per every trade you initiate. In forex trading, this is not the case. Instead of commissions, companies make money using the market making model which involves taking the difference between the bid and asking price.
As you will realize, being a successful trader is not easy. It’s a long process that takes a considerable amount of time. If you believe this is your calling, you should be ready to take this long route and realize the successes that come with it.