So let’s get started.
Is Forex Really Worth It?
The answer is… it depends on who you are.
In this post, I’m going to share my findings and I’m going to give you the honest truth.
But in this, I’m going to show you exactly why the forex market is still relevant in the future.
Firstly, the forex market is THE most liquid market in the world.
Think about it, everybody exchanges money for goods and services.
This will not end.
Each skill learned through trading the markets can be transferred to any future markets such as Cryptocurrencies.
So, the skills you learn are always going to be with you – I’ll touch more on this later on.
Secondly, you can make a huge amount of money from the forex market.
Many people don’t believe this.
I’m here to tell you that it’s true.
And if you have the right skills, it’s even easier than in other markets.
But this doesn’t mean YOU will achieve the same results.
It depends on who you are as a speculator though:
Do you want to buy and hold to wait for the markets to rise over a longer period of time?
If so, then the stock market would be better fine-tuned for you (unless you lower your leverage in your brokerage account).
Or do you want to buy and sell your positions quickly, holding for 2-3 days max?
If so, then forex can throw a LOT of opportunities your way.
Here’s the honest truth:
Forex trading is NOT passive income;
if you trade with a level head and solid risk management, it will not make you a millionaire overnight after depositing $1,000 in your account.
If the two concepts mentioned above make you think trading forex isn’t worth it, then you can close this article down, because forex trading is not for you.
However, if you understand the concepts above, understand that you will lose money from time to time, understand that you will profit over time.
Then keep reading.
Low Trading Costs Means Higher Profits
One of the great things about trading in a foreign currency is the low cost involved.
This is due to highly liquid assets, faster transactions, and ease of access to brokers through technology that has allowed spreads to plummet over the past 15 years.
When it comes to trading forex, the costs involved are very low.
You don’t need a huge amount of money to start trading.
However, you need to be able to lose money because you are betting against the market.
You need to remember that losses are just part of the game.
The more you trade, the more experience you will gain.
The better you get at it, the easier it becomes to make money.
Forex Trading Pros and Cons
Let’s look at the main pros and cons of Forex as an investment.
Why it’s Worth Becoming a Forex Trader: Forex Pros
•24/7, constant trading.
•Relatively low entry threshold.
•Offers a margin-based trading scheme.
•Little in the way of restrictions.
•The chance to gain earnings on sales and buys.
•Leader in terms of dynamics.
•Tax rules are very simple.
•Well-adapted for automated trading strategies.
•Reduced potential for insider cost manipulation.
•The opportunity for speedy returns.
•Massive selection of available tools and currency pairs.
•Absolutely no commissions from brokers.
•Lots of leverage.
•Simple and effective short selling options.
•Liquidity due to the sheer size of the market.
•Significantly fewer costs, fees, and commissions, especially from brokers.
•Despite volatility, the forex market can be quite stable and predictable.
•Opportunities for passive earnings with PAMM and copy trading.
When Forex is NOT Your Option: Forex Cons
•Substantial risk of losing all transactions, especially in the early stages.
•Disadvantages for small traders with little in the way of initial buying power.
•Very sheer regulatory protections are available.
•Little in the way of residual returns.
In general, any investment in any market will involve a bit of risk. Forex is no different. For success in this market, one will need to devote quite a bit of time to training, practice, and study– which may not be ideal for everyone.
Low Much Money Do I Need to Become a Forex Trader?
In 2023, there are a few different ways to make money as a forex trader. To start, a newbie in the trading world can earn up to $100 per day with forex.
This is possible if the following criteria are met:
The deposit is $200 at a minimum.
The EUR and USD currency pair is used with a leverage ratio of 1:100.
An aggressive and proven strategy is used.
5 Rules to Start Earning Money in Forex
This multi-step algorithm to start trading is quite simple to implement.
Choose the Right Broker
The broker of your choice absolutely must be licensed and vetted for. They should also provide a wide range of services for novices in the forex trading world and newbie traders in general. Your broker is going to be your initial point of success, so it’s vital that they are able to help you from the very beginning.
Risk Management is Your Best Friends
Risk management is the foundation of all types of trading, not just foreign exchange trading. If a strategy doesn’t work initially, your risk management endeavors will help you preserve capital and reduce total losses. In general, it is not recommended that a beginner trader use a ton of leverage. Rather, it is necessary to set stop losses and not enter into a position for all of one’s funds. A broker will be able to help you develop a tried and true risk management plan for your accounts.
Follow the Trend
For success in forex trading, it’s vital to follow and grasp market trends. Because this is a global market, trends will come and go quickly in different sectors. Educate yourself as much as possible on the forex market and study different currency pairs and what tends to affect those pairs before risking your investment. This will take a lot of time, but this process will help you avoid losses.
Don’t Make Too Many Trades
It may be tempting to make a large number of trades at the beginning, but it’s best to avoid this as a beginner. Newbies to forex trading should start with swing trading and other similar strategies that don’t involve a ton of trades. In the long run, this will make it easier to keep your emotions as a trader in check.
Learn all the Way
Whether your venture as a forex trader is short-term or an investment in a long-term career, you will never stop learning. It would be a good practice to keep a printed record of your trades that include reasons for the trade to occur and factors that influenced your decisions. Also include possible entry and exit points.
Wrapping It Up: Is Forex Really Worth It In 2023?
If you are looking for a way to earn passive income, then forex is not the answer.
If you are looking to learn a skill to potentially grow your capital and beat inflation? Then the answer to the question: Is forex really worth it in 2023 is yes.
But it’s not easy.
It’s time to ask yourself:
What are my risks?
Can I handle the risk?
Can I dedicate myself to learning the skill and practise until I become fluent in analysing and executing trading ideas?
If you are comfortable with the above, then there is no better time to start than now.