Many people wonder if making a career by trading Forex was possible. The short answer is yes, but you will need a great many skills to make a career out of it. You will have to be consistently right about various factors. Most traders fail because of a lack of consistency. Other valuable skills as a trader are discipline, patience, and being realistic, as they help you trade smartly.
If you are interested in learning trading, take up a forex trading course to understand it and perform better.
Do you need initial capital to trade?
One of the first things you must have while starting out as a forex trader is ensuring enough capital. Trading cannot be done if you are underfunded. How much capital you need for starting out varies from person to person. But in general, it’s best if you have a decent amount of money to support yourself while you trade.
One should also be careful to not put too much money into trading lest they risk losing too much.
What are the pros of forex trading as a career?
1. There are no commissions in forex trading
Most traders make profits from spreads. In the stock market, the term spread is the difference between the ask price that went lowest and the bid price that went highest. Individuals do not have to worry about separate brokerage charges etc.
2. High liquidity
Forex market has the highest number of participants when compared to other financial markets. This is because it has the highest liquidity level, meaning, you can fill large orders of currency trades with ease, without large deviations in price. As a result, it removes the possibility of any price anomaly or manipulation and enables tighter spreads that help in efficient pricing.
Another great plus of forex markets is that one does not have to worry about the high volatility of opening and closing hours, stagnant prices during afternoons, etc that are usually the trademark of equity markets. Unless there is any major event to expect, one can witness a similar price pattern.
3. No Central exchange in forex
There is no central regulator in the forex market. At times, on rare occasions, central banks of various countries interfere in it. This set up of a decentralised and deregulated market is great in avoiding sudden surprises. In comparison, equity markets can undergo price falls within minutes of announcement of a dividend/ a major loss.
4. High Flexibility
There is enormous flexibility in being a forex trader as forex markets are open 24 hours a day and 5 and a half days per week. This allows full-time traders to make their own routines and schedules for trading. This means they have great flexibility in their working hours and need not worry about long commutes or stressful meetings at work every day.
Given so many advantages, forex trading as a career option is at an all-time high. Join a course today to make a start.