Have you already come across the Forex market? An enormous number of articles have been published in the network, revealing the topic of earnings in this market or talking about “global deception”, as well as indicating that all working Forex brokers are scammers. Let’s figure out whether it is worth to work in the forex market.
Is it so hard to make money on Forex?
As in any other business, making money is not easy on Forex. However, the statistics of Forex companies shows that there are quite a lot of those who earn in this market. At the same time, the more funds a trader operates, the higher his probability of making good money.
In order not to lose your money there are a number of rules that must be followed. First of all, you should not invest all the funds that you have on your account in one transaction. It is better to distribute them across multiple transactions and different financial instruments. In addition, if you are just starting to work in the forex market, it is better to start with a sum that you can afford to lose.
Of course, the Forex market is not easy, it requires strength and patience. However, many opportunities and advantages of Forex open up before you, because of which you should try your hand at trading. Let’s look at the details.
Let’s remember once again how does the general scheme of making money look like? In theory, everything seems quite simple: a trader buys an asset with the hope of selling it in the future and make money on the difference in value. A great variety of factors is added up to this fact. Volatility is one of them. The more volatile the market, the more trading opportunities you will have. It is quite obvious that if the market does not move, your capital will not be able to bring you profit. The Forex market in this respect is the most favourable market. Its volatility is incredibly high. If you follow the price movement in the foreign exchange market during the day on one of the main currency pairs, for example, EUR/USD, you will see that its value varies on average between 50-100 pips.
Everyone knows the simple rule of any earnings of traders: buy cheaper and sell more expensive. It may sound strange, but in the Forex market you can trade assets without even having them, in the terminology of traders, this means “to go short”. For clarity, let’s look at an example. Suppose you have an account opened in euros, in which there is 10,000, but you want to open a trade on the USD/JPY pair. In this case, you go short and sell the yen for dollars, even though your balance is in euros. It is a pretty strong argument in favour of the Forex market. Such an example clearly shows how rich the currency market is. Also, you can use the opportunities of the leverage – the margin provided by the bank and allows you to trade a larger amount than you have on your account.
Newbies at Forex make up a significant group of all traders. Due to the relative availability of the market, and the absence of significant obstacles in opening a personal account, an increasing number of people are joining the trading community. However, many of them are absolute newcomers to the financial markets. It is more than obvious that such a group needs educational materials. Therefore, there are also specialists who are constantly working on the development of new educational materials and training programs. All this speaks in favour of the Forex market and makes it the most attractive especially for novice traders (JustForex review).
What is extremely important for traders of any level is the attractiveness of trading conditions. Forex spreads, as well as all sorts of fees for services, are low compared to other markets. In fact, the spread is sometimes one or two pips. In addition, the Forex currency market is well-developed technology, which allows the execution of order as fast as possible: no more than a couple of seconds.
Of course, this is not all the advantages of the Forex market and you still need to study a lot of materials before you start trading. However, if you’ve set a goal, then do not give up. If to be are scrupulous about the choice of a forex broker, get trained and follow certain rules when working in the market, then the probability that you will earn money is quite high. A good broker will always help you in any difficulties. Good luck and profitable trading!