Why Trade Forex?

Well I'm sure all the people who are new to trading forex will have this question, "Why trade Forex?". Besides the potential to make BIG $$$ which all of you would already know, here are some reasons why trading is such a great business:

1. You CONTROL your own TIME
- Once you are able to achieve a certain level of trading mastery, you are able to determine your working hours. Whether it's 15 mins a day or 1 hour a day or 6 months a year, you dictate it.

2. You CONTROL where you work
- As long as there is decent access to the internet, you can work from wherever you want. Hong Kong for breakfast, China for lunch, Japan for dinner and Spain the next day? All up to you.

3. No STAFF, no RENTAL, no INVENTORY
- If you are in a business or are planning to start one, you will probably know the amount of headaches the above can give.

4. Your business is SCALABLE
- Once you have achieved consistency in your trading (NOTE: NOT EASY), your same strategy that is used to make ten dollars a day is the same strategy that can be used to make one hundred thousand dollars a day. You just have to adjust your position sizing and your account size.

5. LEVERAGE
- IF you have a profitable trading strategy, leverage will increase your profits. Some brokers offer up to 400 to 1 leverage (NEVER use such high leverage unless you absolutely know what you're doing). The other way round and your account could be reduced to dust. Double-edged sword.

6. LIQUIDITY
- The forex market is the MOST LIQUID market in the world with AT LEAST 2-3 trillion dollars traded every single day! In comparison, the DJIA volume is about 200 billion dollars daily. This assists price stability and allows for much better execution compared to other markets. Such huge volume also makes it very very difficult if not impossible for any single party to manipulate the markets.

7. LOW Transaction Costs
- Compared to other markets, forex trading has one of the lowest (if not the lowest) cost of transaction around. Depending on your broker, you are charged either a low commission per trade or a few pips per trade.

8. Ability to make money in any market condition
- Due to the nature that forex is needed irrespective of economic conditions and that you can buy/sell a particular currency pairing, money can be made irrespective of whether the market is up, down or sideways.

9. LOW cost of ENTRY
- Demo accounts are available for FREE for you to try your hands on trading. Basic education is also widely available everywhere and HERE ;) Trading accounts can be setup with just a couple hundred of dollars (USD)

10. You get to know your PAIRS well
- Unlike some other markets where you have 100s of counters to choose from, most action in forex takes place in only 4-6 currency pairs. This makes your job of tracking them much easier.

There you go, 10 Reasons why currency trading makes a great business.

While I have provided the PROs of why choose forex trading, there are certainly A LOT of challenges that you would have to go through before being a successful currency trader.

As with any other thing in this world, IF you have the desire, education, discipline, commitment and the patience, the fruits from forex trading are certainly very very tasty.

As usual, contact me with questions if any.

Have a great day!

-Leo