Do You Have A Future in Forex Trading?

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I’ve heard about forex trading before and how it can really make fast money for you.

And the only reason why I haven’t tried to learn forex or currency trading is because I know that any high yield, fast cycle investment will most definitely be high risk too.

However, after realizing that I will get some extra cash by the end of the month, I decided that maybe it’s time for me to try my hand at forex trading.

And so for the past couple of weeks, I’ve been spending a good amount of time reading resources online about forex trading – trying to see if this is a suitable investment instrument for me.

Indeed, almost all of the websites I’ve been to say that the currency market is one of the best places to get fast and high returns for your money – but it’s NOT that easy to do and many have already lost a lot of money in it.

What’s interesting to note though is that they say those who have lost money in forex trading lost it not because the market simply went against their trades, but mostly due to the fact that they didn’t know what they’re doing.

They emphasized that anyone who wants to make money in forex trading MUST first learn about currencies, money management, market psychology, fundamental and technical analysis and many other things.

By this time, I’m beginning to see how similar forex trading is to stock market trading. But then again, there are some big differences too.

Interestingly, I learned that the currency market is the largest, oldest and most liquid financial market in the world.

It is the most liquid simply because what you are trading is money itself, not a commodity nor a product. So if you want to cash out, then all you need is to “withdraw” (as compared to the stock market where you have to sell your stocks first, then withdraw).

And unlike the stock market, the FX market is open 24 hours almost everyday because trades “follow the sun” – which means if there’s a bank that’s open (and there’s usually is somewhere around the world at any given time); then it’s possible to trade.

I have to admit, I’m nowhere near to fully understanding the forex market. But I’m hopeful that given enough time and dedication, I can finally trade currencies with confidence.

So do I have a future in forex trading? Time can only tell. I’m still deciding if I will pursue this or not, but whatever may happen, I’m glad that at least, I’m learning something new.

Lastly, if you want to know if forex trading is for you, then perhaps you can ask yourself these questions:

Are you willing to give it time to learn?
In my opinion, if I spend at least an hour everyday studying this, then I’d be confident enough to trade within a couple of months.

Do you have extra money which you can “afford to lose”?
Mark So of Forex Club Manila says that US $300 is enough to start trading.

Is this something you can actively do?
Forex trading has been described as fast and furious. It’s NOT passive income. To earn, you have to be active in monitoring the market and trade as often as you can afford.

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Double your money within a few weeks? That’s something forex trading can definitely do. If you can afford the risk, then perhaps this is something worth your time.

Learn more about other income opportunities and investment instruments by subscribing to Ready To Be Rich.

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Photo credit: shwe, diego3336 and evaekeblad.

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This entry was posted by Fitz Villafuerte on Thursday, July 29th, 2010 at 1:29 am and is filed under Income Opportunities. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. If it's your first time to comment here, they will be held for moderation. Off-topic responses may be deleted.