Forex trading is an easy money-making career, but in reality, it is quite difficult just like other careers and jobs, it requires your time and effort. It will pay you back according to the time and effort you put in. Is Forex a viable career choice? If this question still comes to your mind then the latter does give you enough reason and motivation to make a decision that works out a week for you.
It is a 24/7 active market with easily accessible forex and has become a popular career choice by many. It has got you covered, being your boss with the comfort of making money using your laptop.
Is forex trading worth it? Yes, it is, if you have a great strategy and risk management process in place, consistency is the key. The foreign exchange market is a place of incredible opportunities with reputable brokers that can help you assist in making it a passive income for you.
Here is a brief look into the advantages and disadvantages of choosing forex as a viable career choice.
FOREX TRADING BENEFITS AS A CAREER
There are several advantages.
- MINIMUM COST
Firstly Forex trading has a minimum deposit of $10 the minimum of most businesses to even begin secondly the common and brokerages together aren’t very expensive either. Most brokers can make gains/commissions through the spreads of forex currencies. There aren’t any separate charges by the firm.
- HAS VARYING TRADING STYLES
Forex trading is the most convent way of working. How so? It runs all day and enables one to work from anywhere anytime they would want or prefer even if you decide the time limit, not like your regular 9-5 job. For a trader/person who is looking for short time investment and wants to gain with minimal effort, short-term trading is the most advantageous for such type, with few minutes to hours you’re done with your work and you’ve made a profit out of those minutes.
- BETTER LIQUIDITY
Forex trading has the highest value of trading as compared to any other financial market. Without any price deviations, a large number of currency trades can occur daily, reducing the price manipulation on price irregularities. Until or unless there is a major event coming the price patterns almost remain the same either it’s high or low throughout the trading.
- NO CENTRAL REGULATOR
The forex market as we know is over a counter market operating globally, it has no regulator or central exchange.in certain extreme conditions, and central banks intervene in the country’s forex market to overcome situations. As it is a deregulated market sudden surprises aren’t a part of this market.it works in an organized pattern until or unless a situation arises that stir it up a little. Now if we compare it to an equity market, the conditions are in the hands of various companies; suddenly they declare a dividend or report huge losses, changing the price dynamics.
The deregulated markets are all in favor of short-term positions that are eliminated from other markets.
- VOLATILITY
If the trader places the order wisely high volatility can help in high gains as major currencies go through frequent price swings thus making forex as a viable career choice.
- OPTIONS FOR TRADING PAIRS
There are around 8 major currencies with 28 major currency pairs. The factors to consider when choosing a currency pair are.
- Volatility patterns
- Economic development
- Convenient timing
If you’re a trader and love volatility then here is a plus point for you, it’s easier for you to shift from one currency pair to the other.
- REDUCED CAPITAL
With a small capital, you can initiate forex trading because of the tight spread about pips. You can start from pips and then increase your capital to be a part of other markets including futures, equity, and options .here is the icing on your cake, margin trading with a maximum leverage of 50-1 can help you gain better profits with minima capital although with such margin there is a risk of its own.
- EASIER ENTRY
Forex trading gives you a swift and smooth entry it’s up to you how you handle you’re landing. if trading with risk management you’ll be fine but if you’re not prepared it might be a challenging ride for you at the start. For short-term traders, there are technical forex indicators that help them improve their trading skills and guide them through it while there is a fundamental analysis that long-term traders mostly use.
FOREX TRADING DISADVANTAGES AS A CAREER;
- LACK TRANSPARENCY
Brokers regulate the deregulated nature of the forex market. For forex starters, it’s difficult as their trade takes place against professionals. The forex market might not be fully transparent as brokers drive it. The market is not under the control of the broker but the activity is.
A trader is all dependent on a broker according to the broker choice features like views on trading quotes, price offer, and order fulfillment are managed. A simple way to put such a situation is to find a regulated broker falling under the preview of the broker regulation.
- COMPLEX PRICE DETERMINATION
Multiple factors can influence the market i.e. global politics or economics. Forex trading happens on technical analysis which plays a role in high volatility in the market. Understanding these pointers and concluding them right is a major part of making trades one wrong analysis can lead to a loss.
- MORE RISK, MORE LEVERAGE
A good and bad thing about forex is it has high leverage meaning the chances of making a high profit over small capital are there but getting high losses over big capital is also there. The forex market allows 50; 1 leverage, with $1 you can get forex positions worth $50.
- SELF DIRECTED LEARNING
There is no assistance for forex traders at the start they are on their own. Meanwhile, in the stock market, there are relationship managers, trade advisors, and portfolio managers to assist. If one lacks information about forex trading there are chances you might suffer losses in the initial phase of trading which leads to a lot of traders quitting in the beginning.
Get yourself educated on the technical aspects and have a market analysis before you go into the market.
- MORE VOLATILITY IN THE MARKET
The high volatility of forex can act in your favor and against you. As nobody has control over the political and economic conditions, if not managed properly the high volatility can make you lose. For instance, if we compare it to the stock market, anything goes south for a particular stock Shares have the management which will do the necessary changes to make up for that stock but forex traders, they’re mostly on their own.
PROS & CONS OF FOREX TRADING
BENEFITS OF FOREX TRADING
- Forex can begin with a minimal deposit and with a low overhead cost.
- It has many market participants making it highly liquid.
- A versatile market has got you covered according to your trading styles, your currency pair choice, and the analytical tools chosen for you.
DISADVANTAGES OF FOREX TRADING
- Most participants are major institutes making it less transparent
- Has high leverage, with a small blow in the currency pairs and your wipe away special leverage traders.
- Not enough educational institutes/professionals to guide you through the process.
CONCLUSION:
At the end of the day what matters is what you want out of your life. If you aim to reach the sky and beyond and become your boss you need to you should choose to become a forex trading pro with the help of a forex trading consultant you can avoid all the cons and become an entrepreneur. There are fx trader jobs are available. so the answer to is forex a viable career choice lies within you. You make the choice and the product.
