Trading has soon become one of the most sought out online professions in the last few years, due to the easy access to the markets and the endless amount of information available for people to learn from. Due to the high liquidity, its round the clock schedule and easy accessibility, trading is a favored profession especially by those who have a financial background, and it is no wonder with the profits that can be made, if it is done right. The appeal of being your own boss with the comforts of being able to make money using just your laptop or mobile device, when it is convenient for you has given some people more than enough motivation to see trading as a professional career. But how can trading actually benefit yourself and your family, regardless of what marketing material we see on a daily basis.
Trading can have some very low costs attached to it, whether that be in the form of broker or commissions. However there aren’t any traditional commissions where you have to pay to enter a trade and pay to close, more so the broker platform profits from the spreads between currencies. Therefore a trader doesn’t have to worry about any other fees or separate charges, so this immediately removes an overhead. When we compare forex trading to stock trading, you’ll notice a huge disparity in the sense that there are a lot of fees and charges that are involved when trading stocks, and so stock traders have to accommodate these fees into their trading plan.
Because the forex market is open 24 hours, 5 days a week, it means that people can trade at their own leisurely pace when it suits them. For the short-term traders, this is a bonus because it allows them to take a number of positions over short periods of time, anywhere from a few minutes to a few hours to be precise. A trader can implement a number of different trading strategies and still be able to generate sufficient profits, since the markets don’t follow one single pattern and therefore one strategy isn’t better than others. This fits the profile for people who aren’t able to be at their laptops or phones all of the time, and so they would need to implement a strategy that works just as well over longer periods of time like a day or week, and those over short periods of time like minutes or hours.
For those who are struggling to make ends meet at the end of the month, forex trading can become a secondary income and can alleviate some of the expensive monthly outgoings. The passive income that forex trading can generate can also be used to fund college education, or be out towards a deposit on a house which can then be rented out, generating another source of income.
Because of the incredibly tight spreads, you can easily create a forex trading account and deposit as little as $100. However, without a larger deposit it might not be possible to trade in other markets, such as equity or futures. Furthermore, there is the option of using leverage to trade with significantly larger amounts, but be warned when trading using leverage because although you can trade with more money than you actually have, if you lose then you can stand to lose more money than you have.