Forex trading has emerged into popularity due to its high liquidity 24/7 availability schedule and easy accessibility. Currency is the most important factor in the world. Currency trade exchange is liable and important for foreign trade and the import and export business. It’s also largely appealing to “be your own boss” while being able to work anywhere in the world, such as your own couch, office, kitchen table, while on vacation, from your mobile phone etc.
However, Forex trading does have some disadvantages such as high risk and volatility. So, I’m going to explain some of the advantages which are:
- Low costs
- Complements varying different trading styles,
- High liquidity
- Potential for fast returns
- Simple tax rules
- No regulator
- Volatility (high volatility assists in massive profit-making opportunities)
- Low capital requirements.
Accessibility is also a major benefit because the Forex market is among the most accessible markets for individual traders.
Some cons of a Forex trader are:
- Complex price determination process
- High risk
- High leverage
- Self-directed learning
- High volatility
Truth be told, the 24/7 markets make it very difficult to regularly monitor prices and volatility. The best approach is to keep strict stop losses for all Forex trades and trade systematically through a well-planned approach and strategy planned for the trader to make profits. With the bar of entry so low and the potential to make money so high, it makes sense that some may get into this with eyes bigger than their wallet can manage.
Some think they don’t need any educational training from professionals, but it's best to “arm” yourself with the tools you will need in order to be successful. That’s why I work with Apiary Fund because they take the time to coach you through your Forex journey and actually want you to be successful and profitable. Forex trading is an accessible, flexible and potentially lucrative career with a large, liquid and transparent environment for trading. Taking into account some of the risks that come along with Forex trading, Forex offers bountiful opportunities for success to traders that are willing to put in the effort and become familiar with the market and essential characteristics of the currency markets.