Over the past two decades, currency trading has become a popular online financial source that has attracted millions of aspiring traders worldwide. For some, the trading experience is enjoyable, and they leave at the end of each day with a little (or a lot) of money in their pocket. For others, trading is not so easy. What differentiates successful traders from quitting traders and how is it possible that trading can be a savior for some, but a nightmare for others? The truth is, there is good and bad in trading – and you need to know the differences.
Let's start with the positive. We have a long list of reasons why currency trading is such an attractive and unique way to make money online. This list covers the best aspects of trading in the forex market and will likely help convince you to open a trading account if you've been reluctant about it.
You can make a lot of money IF you make informed investment decisions.
Opening a trading account is quick and easy - no pre-qualification or testing required.
You don't need to invest an arm and a leg to open a trading account. In fact, 100 euros or less is enough.
You work from home, you set your own hours and you are your own boss.
You can choose a trading strategy that does not require a large time investment if you have an active lifestyle. Most traders also take weekends and holidays, which is an added advantage.
Trading saves many people the hassle of having a second job because they can do it alongside their real job, on their own time. You can even check your trading account during your daily breaks.
Learning to trade has long term benefits. One day you will be able to teach your children to do this and it will help you to get by more easily in your retirement. If you start young, there is no doubt that you will accumulate much more wealth in your life, provided you use a solid trading plan.
Once you start trading, you can decide how much to risk. You can take certain risk management precautions if you want to play it safe with your money, or you can risk more in the hope of getting a higher return.
Alright, so the trade looks pretty good so far, but it's not for everyone. Let's go over some of the downsides that plague traders.
Many budding traders don't want to spend their time learning how to trade, so they open an account without having the knowledge to make smart decisions.
There are scammers out there - a little research on your potential broker can save you this problem, but some newbies don't know how to spot which brokers you should steer clear of.
If you can only afford a small investment, you are likely to miss out on some benefits and pay higher fees through most brokers.
You risk not making any money - or even losing your investment.
You need to be motivated and disciplined if you want to succeed as a trader.
Many fall into the illusion that trading is a quick and easy way to make money with little effort. When they realize this is not the case, they give up.
As you can see so far, forex trading has its ups and downs. On the bright side, some of the bad things about trading can be avoided. For example, if you ensure that you are properly trained before opening your trading account, your chances of success will skyrocket. If you spend time researching each broker you are considering and checking regulatory statuses, you will also be able to avoid scammers, by taking risk management precautions you can ensure you don't lose big bucks. sums of money, and so on. However, some things cannot be avoided. For instance,
So what is the worst part of trading in the forex market? In our opinion, it is the fact that so many beginners fail. If you research these statistics, the results are quite grim, as reports indicate that up to 90% of new traders lose their deposit and quit early on. The reason we hate this so much is that it's completely avoidable, but most beginners just don't know the insider facts they need to know to avoid making common trading mistakes , like using too many leverage, over-trading, making trading mistakes based on emotions, risking too much money, choosing the wrong broker, etc. This is why it is so important to ensure that you are well informed BEFORE opening a trading account