Hello, and welcome to my first blog post!
My name is Bryan and I am a part-time Forex Trader. I first became interested in the Forex Market during the outbreak of coronavirus pandemic. Since the stock markets are crashing due to fear of the pandemic, I decided to look for other opportunities to make some money.
At first, I was hesitant to try trading forex since there was no regulated forex broker in my country. I’m not sure if I can even get my money back. I was also wondering if it’s a scam since there are a lot of forex trading gurus out there showing fancy cars, a massive pile of cash, and saying that it’s easy money. You just need to enroll in their course or subscribe to their trading signals, which is too good to be true.
But upon careful research, I found out that there are reliable forex brokers out there and that the Forex Market offers a lot of opportunities that can help me live my life on my terms – according to my possibilities and not my limitations.
What is Forex Trading?
Forex trading is the simultaneous act of buying one currency while selling another.
Why I Trade Forex?
The forex market is the largest financial market in the world where the world’s currencies are traded.
Here are some of the reasons why I decided to start my forex trading journey.
I’m a short-term trader so I like the high volatility of the forex market. The more volatile the market, the more price moves over a particular time, which means that there are more opportunities to buy and sell currencies and profit from the change in price.
- Ability to go long or short
In stock trading, you can only speculate on one direction of the market – up.
In forex trading, you can speculate on up and down movements in the market because you are buying one currency while selling another currency at the same time.
To go long means you buy a currency in expectation of a rise in the market price. On the contrary, going short means you sell it, assuming the price will fall.
- Open 24 hours a day, five days a week
The forex market is open 24 hours a day, five days a week, from Monday to Friday. There are three major forex trading sessions – Asian session, London session, and New York session.
This is a big advantage of forex for me since I can still actively trade forex even though I have a 9 to 5 job. I can trade forex during the later part of the London Session and the whole New York Session.
- High liquidity
The forex market is the most liquid market in the world. Unlike stock markets where orders can take some time before getting filled, orders to buy or sell forex pairs are almost executed immediately.
- Low minimum deposit and low cost
You can start trading forex with minimal deposit. To minimize my risk, I started trading forex with only $50 and traded micro lots. Although I tried trading with a demo account, I find it more useful to learn the rules of the game using real money since I can take into account the mental aspect of successful forex trading.
In forex trading, leverage allows you to trade with more money than you have on your account. While using leverage can get you bigger profits, you should also be aware that your risks also increase with leverage.
Spread is the cost or charge to trade a currency pair. It represents the difference between the buy/bid price and the sell/offer price. There are a lot of options for forex brokers, and they are usually offering tight spreads and no commission for each trade. If you are a scalper or prefer even lower spreads to maximize your profits, you can also open an account with ECN brokers for a slightly higher minimum deposit of $200.
- Trading platforms and tools
Forex brokers offer a range of trading platforms on web, desktop, mobile, and tablet. The most popular forex trading platforms are MetaTrader 4 and MetaTrader 5. As long as you have internet access, you can trade forex anywhere in the world.
While trading forex can generate high returns at low cost, please remember that forex trading is very risky. You should set realistic expectations and consider your attitude to risk and financial goals.