What’s the attraction with Forex trading?
Forex trading and trading on the forex markets has become a huge multi-trillion dollar industry and there are various contributing factors as to why trading is so popular.
Initially, trading was something that was really only open to investors, speculators and high net worth individuals. But as forex has become more commercialised the trend has bucked and it is opened up the forex markets to those that are less privileged.
There are many work from home schemes like re-mailing, stuffing envelopes or cold calling, but if we are going to be truthful these are a lot of hard work for very little reward.
So people turned to look at other ways of making money from home some certainly those with skills went down the route of freelancing whilst others looked at what software could be run from home and could lead to some form of an income.
Don’t get me wrong there is still a huge amount of investors and professional Forex traders who make not only a living for themselves but also trade on behalf of others with things like PAMM accounts. For the more novice trader forex doesn’t have to prove a large financial risk, providing you set yourself a limit of what you are prepared to gamble or lose on the FX markets.
If you have ever played poker and you believe you have a good hand then quite often you are tempted to go ‘all in’ so that you can win the pot and win big! Unfortunately, it can often be the case in poker that you have lost against a much stronger opponent with a much stronger hand than yours.
With Forex however, you can make a trade on a currency pair that you believe will be a profitable trade. But as forex is in real-time and if you are connected in real-time to your Forex trading platform you might see your currency pair devaluing your trade and hence putting you at a loss. This is the same as ‘all in’ in poker and normally you would just lose your money. But with Forex, the odds are levied in your favour because you could make a trade on the same currency pair in the opposite direction to the original loss-making trade and this would help to reduce your loss. Because one trade will be losing you money and the other will be compensating for that loss by making some money. With Forex you are able to change the amount of your bet so for your lossmaker let’s say it was costing you five cents per unit for the opposite trade you could make a commitment of $.10 per unit helping to claw back if not all of but at least some of your loss. Alternatively, if you are really brave you could go for a completely different trade of currency pairs which might not necessarily be the opposite direction of your initial trade to claw back at your loss.
For me I am not a financial whiz kid and I am not a Wall Street broker but it is nice to feel that I can play the markets like this and come out a winner.
I think the other thing that is very attractive about forex is that it is no longer shrouded in mystery and with the invention of YouTube and other media sharing platforms there is plenty of information out there for the complete Forex trading novice.
Once you start building up a wealth in Forex then trading can be not only very rewarding but also time-consuming and could be a full-time job with great earning potential. But you don’t always have to sit in front of your computer to make profitable trades. These could be performed on most mobile devices especially iPhone and android mobile phones or tablets but if you wanted to be even lazier and still have a chance of making a reasonable income then you can run (in accordance with a forex brokerages a terms or conditions) a robot. I have personally used robots like Fapturbo and these robots once set up will automatically trade profitable trades on your behalf. You can set these Forex trading robots to work for short-term gains or indeed long-term commitments.
This is why I believe that forex trading is attractive to most people, because it is so versatile and easily accessible. Not every trade will be a success story and not every trader will be a success story but the positive trades and traders sure outweigh the negative ones.