8 Reasons Why You Should Trade Forex to Get What You Want
Ask several successful traders: “Why do you trade forex?” and you’ll get different answers. Sure, making money is frequently cited. It’s a perfectly legitimate motivation: we live in a world where money, even if it can’t buy everything, can still make life a lot more enjoyable. Some people trade in the forex market because they find it fun; and at the same time others for the personal satisfaction of making a trading system work for them, and getting the results they aimed for.
What’s the common factor? It’s simple: one way or another, these people are getting what they want – money, enjoyment, achievement, perhaps all three, thanks to forex trading.
Now, there are different ways of accomplishing goals, and trading in forex is just one possibility. However, what sets forex trading apart is how it makes opportunities for success available in ways that are unmatched by other activities.
- The forex market never closes. No matter what time of day or night, a market exists for trading one currency against another. Forex exchanges exist all over the world and it’s always trading time somewhere. Because forex trading is done electronically without you physically having to be at any exchange (no banknotes change hands), you can even trade while you sleep if you set your trading system up like that.
- The market is highly accessible. There’s no need for large investments, advanced technology or brain-bending qualifications. You can begin trading with an initial deposit as low as $50 USD and an Internet connection. Yes, additional resources may let you go further, faster, at the beginning, but trading in the forex market is available practically without restriction.
- A little capital can control large trades. Also known as leverage, forex trading allows you to open trades that are as much as 200 times as big as the capital you commit. For example, you could control a $10,000 USD trade with only $50 USD of your own capital. You make the same percentage of profit, but at the $10,000 level, instead of the $50 level. More about understanding leverage here.
- Transaction costs are low. You make a forex transaction when you buy or sell money in one currency for another. There would be no point in trading, if the cost of making such a transaction ate up your profit. Thankfully, forex transaction charges remain minimal, thanks to an open and very liquid market (liquidity is the ease with which you can buy or sell), and the high volume of transactions continually taking place.
- Earning potential is unlimited. Let’s put it this way. The United States of America “turns over” (its GDP) about 15 trillion dollars a year. The daily trading volume in forex is over 3 trillion dollars. That means the forex market turns over in less than a week what it takes the United States of America to turn over in a year. In about 3 weeks it turns over the equivalent of the combined, yearly GDP of the whole world. Is that enough potential for you?
- You can earn whether the market goes up or down. In some markets, you can only make money by first buying low, then selling high. Forex is different: you can still buy a currency low (called being “long” in that currency) to then sell it high; however, you can also first sell a currency high (being “short” in that currency) to then buy it back low. As long as there is movement in the market, no matter if it goes up or down, you can make profit.
- Trade from anywhere. Not only are you free to trade when you want, but also where you want. As long as you can get the internet connection, you can place buy or sell orders. You no longer even need a computer: comprehensive trading applications and interfaces are also now available for the latest generations of smart phones.
- No-one is able to corner the market. The forex market is far too big for any government to control, let alone a corporation or an individual. It is about as close to a “perfect” market as any market gets, meaning that it is driven by pure demand and supply, without being skewed by any entity or person.
No other market brings together so many favorable conditions for getting started and making money. Just remember that if you can make money in forex, you can also lose money. So make the most of the opportunities on offer by doing the right preparation and trading sensibly. That way, you too can get what you want out of forex trading.
P.S: What is the reason why you started trading forex? Waiting for your answers in the comment section.