Many people who have a certain interest in blockchain are wondering whether they can turn their passion into a full-time job and become professional Forex traders. Since it includes a 24/7 schedule, being your own boss, high liquidity, and easy accessibility, it’s no wonder why this career became one of the most popular ones nowadays.
Although it may sound easy and, kind of, ‘dream come true’ job, it has certain difficulties. One must really get to know how Forex trading works in order to start doing it properly.
In case you are one of these enthusiastic individuals who would like to make Forex trading into a real career, we have provided you with all the pros and cons of it so that you can know what to expect if you decide to try.
Let’s start with the pros!
Pros of Forex Trading Career
There are lots of advantages when it comes to a Forex trading career. Here are some of them:
It’s easy to access
Perhaps one of the best advantages of making a Forex trading career is the easy accessibility. It means that it is quite easy to enter, because there are several tools and fundamental analysis theories for long-term trades and hundreds of Forex technical indicators to draw on for short-term trades.
Capital Requirements are low
Another advantage of it are low capital requirements. Today it’s very easy to start trading Forex with small initial capital thanks to tight spreads in terms of pips. Nevertheless, one must have in mind that trading without more capital, trading cannot be done in other markets.
The market is highly liquid
The Forex trading market is known to have the largest number of market participants, when compared to other financial markets. The result of it is high liquidity of the market.
This means that large orders of currency traders could be efficiently filled easily, which excludes any enormous price deviations.
There is no need for Regulator of Central Exchange
The Forex Market doesn’t include any regulator or central exchange. This is a decentralized and deregulated market that keeps the costs low and helps avoiding any kind of sudden and unwanted surprises. Broker executes the orders that are directly set to him on his own.
Cons of Forex Trading Career
For those who are still sceptical about turning Forex trading into career, we must say that this skepticism is justified by the following cons:
The risk and the leverage are very high
Since Forex trading is available on high leverage, it’s no surprise that the loss and profits exposure multiple times of the trading capital itself. There is 50:1 leverage that the Forex market allows so in order to reach a Forex position worth $50, one must have $1.
Determination of the Complex Price is complicated
You must have in mind that global economics and politics, for which it is very difficult to draw reliable conclusions or analyze information to trade on, are the factors which have an influence on Forex rates.
Forex Market is not transparent
Since one is trading against professionals on the market which is primarily dominated by brokers and the market is deregulated by nature, we are all aware of the fact that the Forex market lacks transparency.
This means that traders may have limited views on trading quotes, won’t get the best possible price or have any kind of control over the way their trade orders get fulfilled.
So, as a conclusion of this article, it’s more than clear that Forex Trading really requires a steep learning curve and that Forex traders are considered to be flexible and very highly engaging. There is also a high level of risk, volatility, and leverage they are willing to take.
Nevertheless, in order for one to become a successful Forex trader, there are a couple of things she/he must follow:
- Robust trading plan
- Efficient capital management techniques
- Everyday learning
- Risk appetite