There are a lot of opinions about trading on Forex. Some consider it a scam, others think that this is a great way to earn money. There are also people who perceive trading as a kind of gambling. Such judgments generally arise depending on the success or failure of those who tried online trading and got the impression.
However, experienced traders always talk about Forex as a dangerous but real way to make money. Like any business, online trading is characterized by advantages and disadvantages.
First of all, trading on forex opens a wide variety of opportunities. One can earn a lot, even if they start with small capital. The trader will need to increase the deposit. It takes time but gives the desired results.
There are also other pleasant advantages.
There are no limitations or restrictions to the working schedule of a trader. One can easily combine this activity with all other tasks and build a timetable that will be suitable and convenient according to the lifestyle.
Moreover, there are mechanical trading systems that automate the process and provide the trader with the highest possible level of freedom.
You can create any workspace you wish for trading. Only two tools are necessary:
- a stable Internet connection
- fast hardware
Everything else is up to you. You choose a place and even a country. In addition, you can install the mobile app and stay in touch literally from any comfortable place.
Lack of superiors
Work in trading is done exclusively by yourself. No one will tell you what to do or give you some boring tasks. It also means that the income will be totally yours. However, keep in mind the responsibility that comes hand in hand with independence.
To step into this area, it is not necessary to receive higher education in economics or finance. Many top traders have gone to college in areas completely unrelated to trading or have no education at all. The ability to trade successfully is often considered a talent, and this is true.
If you wish to start, you can find a lot of useful materials on the Internet or follow experienced traders, and it will depend on you what you learn and how. There is no special education that can open a way to success in this area.
What about the disadvantages? As far as we can see, trading is not very easy but still fascinating. Do not forget about the challenges that are waiting for the trader.
In trading, winnings and losses are always side by side. Even an experienced trader can lose a lot in a few hours. And it is especially true for beginners. Therefore, one needs to be careful but ready to lose and win.
If you invest several hundred dollars and expect to earn millions, this will not work. At the start, you need to:
- ensure the ability to lose 2-5% of your capital on each transaction but no more
- trade standard lots and have enough money to secure this transaction
No wonder, there are requirements and recommendations to the starting capital and one cannot neglect them.
Time to get experience
The beginner generally needs a couple of years to get the basic level of experience and start to earn. Losses are inevitable, and they are actually an important part of the experience that will slowly lead to success.
Altogether, trading is an exciting journey. Still, one needs to get ready for it and start the trip understanding all pros and cons.