Training
Now, probably, there are no people who have not heard about earning money on currency trading. Unfortunately, widespread advertising does not always contain the relevant information, but it is often possible to find a fairly adequate explanation of all the advantages of the foreign exchange market. Let's consider what prospects forex opens up for us and what are its strengths compared to other types of earnings, including in other sectors of the exchange.
Working conditions
Let's start, perhaps, with the most important advantage of the foreign exchange market - labor conditions. Since trading does not imply being in any particular place, you can work at home in a comfortable chair in a familiar and comfortable environment. The only thing that is required is an Internet connection, and the requirements for it are quite high, good speed and minimal signal delay is needed. However, now there are practically no providers who could not provide a wide channel, there were problems with this 15 years ago, and now even a mobile phone will provide everything you need. Also, there are no special requirements for the computer on which the activity will be conducted, a simple office computer with minimal characteristics is enough, respectively, we get another advantage of the foreign exchange market - low requirements for equipment that everyone usually has.
Also now almost every broker offers a mobile solution for trading. Usually this is a classic meta-trader, made just for the Android and iOS operating systems, on which the vast majority of mobile devices work. Since almost everyone has a phone, while with a high probability it will be a device on one of the above-listed operating systems, it turns out that everyone can trade if they want, even without having a computer. The program itself is not at all demanding, it also works on the most budget phones. Thus, it turns out that you can work almost anywhere, which for many will undoubtedly be the main advantage of the forex market. You can do some basic business while simultaneously monitoring the situation on the market via the phone.
Lack of installations, requirements
The trader works by himself. He doesn't have a boss who tells him what to do, how to do it, and so on. That is, as one of the main advantages of forex, you can call complete freedom of action. Of course, there is a schedule of important publications, meetings and other things. You can also find complaints from some traders about rises in the middle of the night to look at charts – at this time, as we know, there is an active phase of the Asian trading session, and Japanese statistics and indicators are coming out. But no one forces trading instruments that are active at this time. If there are no transactions on the Japanese yen, you can sleep peacefully. You will have to get up only when positions are open and they are short-term. In other cases, this is not necessary, and this is an obvious advantage of the foreign exchange market.
You can also always arrange a day off almost any day. It is better not to miss some publications, but there will be no more than two dozen really important ones in a year, so it can be assumed that on any given day a trader may simply not work, not even open a trading terminal and not look at charts at all. At the same time, no one will swear, everything is solved independently. Are there many occupations in the world that are so loyal to the workflow itself and at the same time promise earnings? Probably not, so the advantages of the forex market are quite obvious, it is enough to compare it with any other activity. On the other hand, workaholics will also find their advantages. For example, after the New Year, the foreign exchange market starts working literally from the 2nd or 3rd. There are breaks, but they are usually associated with major holidays around the world – Catholic Christmas, Easter.
The same applies to indicators, which is also an advantage of forex. There are no settings here, it is up to the account holder to decide how much money to use in trading. Risks and profitability depend on this. Someone trades on an account of $ 100,000 and is satisfied with the result of $ 3,000 per month, while devoting ten minutes a day to trading. The other uses $ 10,000 and earns a comparable amount, but only takes a lot of risks, is in nervous tension and "spends the night in front of the monitor." It is impossible to call any of these approaches right or wrong, there is freedom of choice – an undoubted advantage of the foreign exchange market. Among the participants there are both conservatives and enthusiasts who are ready to spend 20 hours a day at work, everyone will find their own suitable regime. In addition, it is possible to create your own automated trading algorithm – the programming language allows you to shift almost any strategy, and testing on history shows you how vital it is.
Instruments and liquidity
The biggest advantage of the forex market is the highest level of liquidity. This is due to huge turnover, interest on each side is measured in tens of billions of dollars, which creates excellent opportunities. Thanks to the development of information technology, it is possible to access the market with a transaction time of 50 milliseconds after pressing the button. At the same time, one more advantage of the foreign exchange market should be noted – no one has enough money to manipulate the price. Of course, there is always and everywhere an insider, but as for transparency, there is no doubt about it. Forex is probably the last place where you can move prices according to someone's wishes. For example, a pair of euros to the dollar. These are the two main world currencies on which almost the entire world economy is tied. To suspect manipulation is even somehow ridiculous.
A wide selection of trading instruments is another advantage of the forex market, which allows you to find a signal at almost any time or, in principle, to see activity on a random pair that allows you to earn. Of course, these are not hundreds and thousands of stocks, but you need to understand that high liquidity is not available for all of them, but currency pairs are really excellent indicators. Usually the list consists of 40-100 instruments, but if desired, you can find a broker who will give even more. But, as a rule, a couple of dozen basic ones are enough for everyone. In addition, brokers themselves usually include the most interesting instruments from related sectors - gold and silver are almost always represented along with currencies, as well as some indices, which is an undoubted advantage of the forex market and the companies representing it.
Access conditions
Despite the assurances of various gurus on YouTube, it is not necessary to have $ 1,000 or even more on the account. There are special accounts that allow you to trade with a minimum amount, while they practically do not differ from those that are designed for larger amounts. The so-called "cents" are a huge plus and advantage of the foreign exchange market, which makes it possible to test yourself as a speculator without risking significant money, it is enough to have $ 10, and sometimes less. A curious fact is that using cent accounts usually show a fairly high level of profit, perhaps it depends on a much lower psychological burden. Therefore, you should not believe those who call for trading large volumes at once, it is better to try yourself on small ones in order to feel the whole trade, highlight the disadvantages and advantages of the foreign exchange market for yourself.
After the trader understands everything, you can use the next opportunity provided by brokers - leverage. It will significantly increase your earning potential, however, at the same time the risk increases proportionally. Nevertheless, having access to such a solution is an undoubted advantage of forex, which some manage to realize and show such incomes that are simply impossible in a legal business. But, this issue should be approached very carefully, studying the whole mechanism just on the cent account. And after that, start using financial leverage, which for some brokers can reach very extreme values - up to 1:1000. It is usually possible to change its value to a more appropriate one – another advantage of the foreign exchange market.
Training
Due to the fact that the foreign exchange market is constantly gaining popularity, at the moment almost all the key information necessary for a qualitative analysis of charts, events, trends and the overall global economic situation is freely available. That is, you can study yourself, there is a huge amount of literature and it will satisfy the needs of even lovers of completely extravagant methods of analysis and unconventional approaches (for example, Gann, who paid attention even to astronomical phenomena). It is also worth noting another advantage of the foreign exchange market - trading on a demo account. This is a training account, which has a virtual amount of money and which completely simulates the trading process. The difference from the cent is that there is not even a minimum amount needed to study trading. For general information, this is probably the best option.
