The global pandemic just added fuel to the already existing fire of financial instability worldwide. With a lot of industries failing and jobs they provide disappearing, people are looking for new ways to earn money.
Whether you are interested in a change of career, wish to be your own boss, or are just looking for a side job, Forex trading is something worth looking into. Forex (foreign exchange) market allows all participants (banks, funds, and also individuals) to buy, sell and exchange all currencies currently existing in the world. That makes the forex market the biggest financial market in the world.
Compared to other markets, e.g. stock market, the Forex market is more suitable for retail traders for two major reasons:
High Volatility (low investment and higher gains)
Volatility in any market represents the frequency and scale of the price change. A higher volatility means the price will change more rapidly and more often. Which is an excellent opportunity for traders, especially those with lower capital. You can start trading with as little as 100$, and if it goes right, you can get up to a 1000% return.
You don’t need a large amount of money to start trading on the Forex market. Of course the same is true for the stock market, but the possible returns are much bigger in Forex trade. Because the price of stocks usually moves at a slow pace, and it is more suited for long-term investments. Trading currencies presents a much better option for faster trades interested in day trades or swing trades.
A day trade is when you buy something and you sell it during the same day. On the other hand, the swing trade can span from a week up to a few months. For both styles of trading high volatility means more opportunity. That's simply because the profit from your trades depends on the movement of the price - the more it moves in the desired direction the more money you will earn.
Not many jobs offer this kind of flexibility and it is flexible in two different aspects. The first aspect is that you can custom tailor each of your working days. You set your own goals and timelines, therefore, you can plan your time more freely. The second aspect is market flexibility. Unlike the stock market that has fixed trading hours, you can trade on the Forex market twenty-four-seven. That means you can open a trade (buy) or close (sell) at any time.
Democratization Of Trading
As technology rapidly progresses more and more things are becoming accessible to everyone. In the past, trading on any market was complicated and not accessible to the everyday man, but with all of the trading apps now in circulation, it is easier than ever. That means that the large markets that were reserved only for the “rich and powerful” are now accessible to everyone with a phone and a bank account. This fact changed the trading landscape forever and put the word “free” back into the old concept of the “free market”. As already mentioned, the Forex market offers opportunities for faster gains but also higher risks. So, you have to be responsible for your investments. Invest wisely and when taking high-risk trades do it with the money you can afford to lose.
The Forex market is the most diverse financial market in the world. It has so many different participants that it is almost impossible to be manipulated by a few “big players” (which is the case in many of the world's financial markets). That diversity along with the accessibility of modern-day trading apps creates an equal opportunity for every participant including the individual retail trader. So the Forex market is a great representation of a truly free market and its prices reflect the relation of supply and demand without obstructions (as they should).
To invest wisely, first, you’ll need to learn as much as you can about the market you are entering and keep learning every day. The best place to start would be Investopedia which became an essential learning resource for new retail traders.
Also, you’ll need a good tool for trading. You must find a reliable and customizable app so you can start trading with all professional tools that “the big players” use. I would suggest MT5 (MetaTrader 5) because it is suited for new traders as well as more experienced ones. You can download MT5 from CFI UAE, and start trading now.
If you are not confident enough to start trading with real money, the MT5 offers the service of paper trading. Paper trading is a trading simulator, you can practice your trading in a real-world environment but without using real money. It is a great tool for beginners or for people who would like to test different trading strategies without risking their hard-earned money.