When comparing share and currency trading, it is necessary to consider the cost of transactions. Share trading involves a high round-trip spread of around 0.25% and Forex trades are cost-effective due to their low round-trip spread. Furthermore, FX trade commission and market spread are lower than their share-related counterparts. For this reason, FX trade is a more cost-effective investment than share trading. However, before you commit to trading currency in live markets, it is important to use a Demo Trading Account to get a feel of how the market works. This will give you a better idea of how much money you can make.
Those who can make money
The answer is “yes,” and the Forex market is one of the best places to invest your money. However, before you dive in, you should understand what makes a good trade. Forex earnings are not fixed, and depend on a number of factors. With a little bit of knowledge and practice, however, you can make a sizable profit from the Forex market. For example, Chinese trader Chen Linkuy, who started his career with a small $100 deposit, made a $100,000 profit in less than a year.
Those who don’t
While it is true that the Forex market disproves your trade setups, this is often the best learning tool you can have. Even when you’re wrong, losing trades can prove to be the best decisions you’ve ever made. The key is to find your edge in the market, and to define the criteria for entering and exiting the market. This way, you can avoid costly mistakes that are common with trading in the Forex market.
Those who don’t have time
Whether you’re a seasoned veteran or a newbie, forex trading can be a challenge for even the most experienced investor. The market is fast-paced, with rapid price changes and a high degree of leverage, making a bad trade a devastating blow to your account. Still, some advisers say there’s a place for people who don’t have time to learn the ins and outs of the currency market.
Those who don’t have discipline
Forex trading is not for everyone. Those who don’t have discipline or the financial intelligence to follow the rules of the market are destined to fail. Even though the leverage of 50:1 may sound tempting, it’s not worth the risk if you can’t manage it. It’s a good idea to define your risk before starting your trading career, but make sure that you’re disciplined enough to handle it.
Those who don’t have resources
In the world of Forex trading, the “smarter, not harder” approach is a golden rule for making a profit. Making mistakes is expensive, and the best way to avoid them is to learn more about forex. There are a lot of educational resources available at iFOREX, which can help you become an expert trader and prevent losses. You should also do your homework and make sure to avoid over-leveraging your positions. Traders should treat Forex trading as a business, and not a game.
Those who aren’t disciplined
Most traders lose in Forex because they don’t know how to control their emotions. A successful trader must learn how to take the responsibility of their decisions. The market is unpredictable, and a trader must have the discipline to accept that he or she could lose a trade. In addition to risk awareness, a trader needs to be able to decide when to exit a trade. It is important to understand the difference between loss and profit.
Those who have time
The key to successful Forex trading is to time the market, but that’s easier said than done. Even traditional stock market traders know that timing their trades around recessions can cost them in the long run. Price movements and corrections are inevitable. Fortunately, there are several other ways to make money trading in Forex. Listed below are some of the best times of day to invest your time in the forex market.
