Trading in the currency market is tough. You have a lot to learn and a lot to remember. But on the bright side you can do something completely different from your day job and still earn more than you make. That is of course if trading is not your job.
BUT.
Just like with anything else currency trading has its advantages and its disadvantages. And to see trading clearly we need to look at it as it is.
So, here we are – advantages of currency trading.
First part can be found here.
7. It is extremely profitable.
8. High liquidity.
9. No involvement of central banks’ policies.
10. Volatility.
11. Works around the clock.
12. It gives you confidence.
7. It is extremely profitable.
Currency markets provide the maximum leverage compared to other financial investments out there. This gives traders a practically unfair advantage as one can trade 20-30 times more than they can afford. This allows traders with low budget to broaden their possibilities as well as earn much more than they possibly could with their initial investment.
8. High liquidity.
Currency market has the highest number of participants compared to other financial markets. This guarantees high liquidity which stimulates large orders of the currency trade. High liquidity eliminates the price manipulation and doesn’t influence the original price, thus promoting fair pricing.
9. No involvement of central banks’ policies.
There is no involvement from the Central Bank of any country. The markets are pretty much self-regulatory which leaves their total fairness intact. This guarantees that the market only favors those who are willing to work and learn rather than rely on loopholes and local regulations.
It doesn’t change and can’t be influenced as much compared to other segments of the markets.
10. Volatility.
In currency trading a trader can easily switch between positions if they find profit or good investment somewhere else. Of course there is a lot of risk factor involved in such jumps and in such capital driven market but volatility can provide higher profit by changing over to the currency that gives a better return.
This can provide a good advantage for decreasing the risk factor and increasing profits.
11. Works around the clock.
Currency trading market operates 24 hours a day, 7 days a week. It is always functioning no matter what the situation around the world is. This allows people take on trading as a part-time job where they can work in the hours they are comfortable with. An individual can see the current market trend and get updated on it anytime.
12. It gives you confidence.
The thought that you have another level of income that can potentially provide you with even more money than your day job is pretty comfortable. The idea that nothing and no one dares to meddle into the process is even better.
Will trading become something permeant in your life? Well, that is not for me to say, but the level of confidence it provides sure is something to consider.
