Forex Trading Career: Pros and Cons

Photo: Wikifx

Forex market runs for a 24/5 schedule it's very easy to get accessibility. Forex trading career is a dream for a lot of peoples. Especially for those peoples who are facing financial problems. Traders being their own boss and everything. There is no doubt it's a freedom career.

If you are looking to trade in the forex market, you need to be aware of the profit probability and risks entailed in the trade. It is easy to set up a forex account. You can start trading with a small investment to start with to get the hang of it. The forex platform is technology-aided, and most brokerages allow real-time prices, price charts, analytics and strategies and tools to be shared for the investor to make an informed decision. The operational timings are longer for forex trading on exchanges as it has to sync with global markets.

Access to leverage is greater in the forex market. The margins are lower and the initial capital requirement is low. The forex market is fast-paced and has deep liquidity. The potential for faster and higher returns is more probable. Currency derivatives are generally bought in pairs. Currency pairs are basically pairs of majorly traded currencies on the exchange. So, when you buy one currency, you sell the other one paired with it. So, there is no borrowing involved in the trade. You only sell the currency that looks sure to decline. Hence, short selling in currencies is easier and less complicated than short selling in stocks.

The volumes of trade are humongous in the forex market. This ensures that liquidity concerns are minimal. Technical analysis is strong in the forex market. Price charts can be used to gain in-depth analysis required to trade.

Here are some pros of Forex trading career

• You can get started very quickly and cheaply.
• Most of the trading platforms you need to use to execute are free.
• The data feeds for live tick data are free from your broker.
• The amount of money required to trade for a living is pretty low compared to other asset classes as the brokers offer very high leverage (this is a double-edged sword).
• The markets are open 24/6.3 so there is lots of opportunities to harvest your trading edge.
• There are many vibrant active trade forums and tools available in many cases free of charge to help you become a better trader and also help you fight the isolation if you are working on your own.
• You can trade remotely so if you want the flexibility of trading from home, or while travelling and that type of freedom this is an amazing career to pursue to enjoy those benefits.
• If like me you are into rewards based on merit, i.e. not sucking up to a boss or hiding in a group, this is the ultimate meritocracy.
• There are many reputable platforms that are looking to incubate and seed emerging trading talent. My partner Vlad and I have been doing this since 2012 and have allocated over $60 million to traders around the world. Check out PsyQuation
• The ability to use copy technology and MAMs and PAMs has enabled a trader to scale the managed accounts side of their business very easily and cheaply.

There are probably a lot more I can add but here are some cons:

• Forex trading is a zero-sum game, so you will only make a career out of it if you have an edge.
• You are trading against the smartest minds in the business as well as the largest banks and hedge funds and brokers who have almost unlimited funds at their disposal as well as the benefit of seeing large amounts of order flow. So don't be naive and think that after a short trading course costing a few hundred dollars you are likely to be able to beat the market.
• Like any great skill, it takes time, it is very easy to be fooled by randomness and think after a few good months that you are better than you are. The human psyche (ego) is preprogrammed to be overconfident and looks for signs that don't really exist and then believes them at usually a tremendous cost to your net worth.
• The high leverage on offer is a bitch it will kill you most of the time.
• Brokers that allow you to trade with tiny deposit accounts are not doing you any favours so don't think that you can just set up a tiny account and use it as a way to build a track record to launch a career. According to our stats accounts with equity below $10,000 are much more likely to blow up than accounts above this threshold.

Summary

Forex exchanging is an open, adaptable, and conceivably rewarding movement inside an enormous, fluid and straightforward condition for exchanging. Considering a portion of the innate dangers to forex

Exchanging, a significant number of which are available in other exchanging exercises, forex offers abundant open doors for progress to dealers ready to get comfortable with the shows and inborn qualities of money markets.

Any suppositions, news, research, examinations, costs, other data, or connections to outsider destinations are given as broad market critique and don't establish venture guidance. FXCM won't acknowledge risk for any misfortune or harm including, without confinement, to any loss of benefit which may emerge straightforwardly or in a roundabout way from the utilization of or dependence on such data.

Reprinted from Wikifx, the copyright all reserved by the original author.