Reasons why you should Trade Forex
Forex trading by individual traders (retail traders) is getting more popular as time goes on. Despite this some are still wondering why they should trade Forex. Some have said its gambling. If Forex is gambling what then is the stock exchange? Is there any assurance on where the stocks will move to? No. It depends on market forces and information. Some have bought stocks for years with no dividend and capital appreciation to show for it. So, like the stock market, Forex is information based. Mind you, we are not in the stone or jet age but information age. The right information will assist you to trade profitably. The following are the reasons why Forex is so attractive to so many people.
Here are a few reasons why:
1. Trading Size: The size of the Forex market is unprecedented and unmatched by any other global market. The huge number between of 2.3 and 5.1 trillion dollars is what is estimated to be traded daily in the Forex market. This causes the initial attraction to new traders.
2. Better Training: The awareness level on forex have increased compared to previously. When forex first came to Nigeria, most people lacked laptops or computers. They attend a 2-hour conference and then zoom off to a café to burn off their money. The seminarians teach then people can double their accounts in 2 hours. That’s possible but the same account can be lost in 2 hours! Mobile trading on phones are now available for traders. Internet access and speed have greatly improved. Today so many training opportunities are available, both online and offline. Training is very cheap today and is articulate.
3. Account opening is simple: The process of opening a Forex account is not complex but simple. All you need is a valid means of identification and proof of residential address. It’s as simple as opening a bank account.
4. Funding account and withdrawal in local currency: The advantage of funding, withdrawal and even trading in local currency is a big plus today. In the earlier Forex days in Nigeria, domiciliary accounts and funding in foreign currency is a must. It is now possible to credit deposits and issue withdrawals within hours.
5. Accessibility: The Forex market, as opposed to any other market, is open around the clock. You open it on your laptop any time you wish five days a week for 24 hours. You trade money from the comfort of your own room or place at any time during the day and night. This is of course magnified by the internet and the constant access to the worldwide web from anywhere on the globe.
6. Equality: This is a direct result of its size. As opposed to other markets, the Forex market is so huge, it cannot be effected by one individual person or institution. So, the retail trader, for all intents and purposes, is on the same “level” as the largest bank when it comes to Forex trading. The Forex market cannot be manipulated.
7. Leverage: You do not need huge amounts of money to be able to trade huge amounts of currency. Almost all Forex brokers today offer a minimum of 1:100 leverage on your trading deposit. Leverage has its advantages and disadvantages. Leveraging makes losses to exceed initial deposits and capital to be at risk if care is not taken. Carefully consider why you are investing/trading, your level of experience, and your risk appetite before you decide to trade Forex or any other financial instrument. We work hard to offer you worthwhile, time tested information about forex. Most brokers provide continuous training and forums (offline or online) to traders. Daily market analyses are given to traders to help them in creating choices in trade. Entry levels for deposits have conjointly been reduced to accommodate the economic reality.
A trader can begin now with as little as N5000.
8. Availability of Demo accounts: Demo accounts are available for free. They are meant for practice trading and also to build trading skills that have been learnt. Real time currency market news and charting service is on 24*7. The demo account is a live account but imaginary money is used for trading.
9. Volatility: The Forex market rarely stands still. Not solely is it perpetually moving, it is making large movements. Large volume transactions and high liquidity combined with fewer commercialism instruments generate larger intra-day volatility within the currency market which will be exploited by day-traders. Volatility for the most liquid stocks are between 65 to 110. Volatility for currency trading is approximately 555.
10. Transparency: With the Forex market, what you see is what you get. Analyze the news, read the charts, there are no surprises. If you recognize what you’re doing, you can predict the direction of the market, with relatively high percentage accuracy. This is perpetually a bonus once considering an investment. Are you baby-faced with the danger of being stunned by this event or another which will have a control on the market and its movements? It is strongly advised that you should trade for yourself and not rely on any one who claims to be experienced to trade for you. You can learn from someone but please trade for yourself.
Career openings: Traders, consultants, analysts, marketers, sales personnel,
operations personnel, signal providers, trainers, partners, representatives,
and a couple of others make a living from Forex. Signal providers inform the
trader who can’t read the market well of when to buy and when to take profit
and avoid losses.
12. Profitability: The Forex market is a two-way market, you are always working with pairs, so if one currency is decreasing another is increasing. There is always the probability to make profit in the world of Forex. Besides the plain potential for profit in Forex commercialism, there is also another element that is exclusive to Forex. You can profit regardless of that direction the market goes.