What is considered as being profitable or being a good investment option? A good investment option does the following:
Forex trading fulfils all the criteria set out above. But like everything else on planet earth, you have to be dedicated to studying the market and how it works, so you can devise the right strategies to get your share of the $6 trillion daily turnovers of that market.
If you ask those who have been involved in the forex market since 2006, they can tell you conclusively that forex trading is a profitable and good investment option. After all, those who do not make it usually do not stay in the market for more than 3 months.
Some of you may have read the book Rich Dad, Poor Dad by Robert Kiyosaki. You may have grown up in a setting that resembles the "poor dad" setting. The classical sequence of going to school, getting good grades to get a good job on graduation, get married, have kids, retire, and live happily ever after on a good pension may have been the guiding mantra for your life growing up.
If you are one of those who had a chance to get good jobs and were able to hold it down for at least two decades, you are one of the fortunate few. Many were not so lucky, as economic realities of the 80s and 90s turned all you have been taught about money on its head. Even if nothing else did, the 2020 COVID-19 pandemic brought a crushing reality to bear on everyone in the world. Everyone needs a source of income that can be generated at will, is not subject to the economic vagaries of the modern world, not blown away into the wind by a pandemic, and can be done for life even in retirement.
Why is forex trading a potentially profitable and good investment option? There are some things about the forex market that set it apart from other ways of making money.
Many expenses of today do not wait to show up at the end of the month so your salary can be handy to handle them. What do you do between day 30 of one month and day 30 of the next when you have financial needs that need to be attended to urgently? If you ask those who are making money from the FX market every week, one thing they will tell you is that the ability to pay for anything with money generated on demand is a feeling better experienced than described. They will tell you that the FX market has proven to be an all-weather money-making opportunity.
The FX market has no downtimes, no off-days, and experiences no lockdowns. During the COVID-19 first wave in 2020 that led to the shutting down of the global economy and brick-and-mortar businesses, the FX market not only continued to function, but it was also brimming with even more opportunities than ever before. There are stories of FX traders who supported wives, parents, and brothers that had been put out of work due to enforced government lockdowns with proceeds of FX trading.
The COVID-19 pandemic was an examination for all forms of making money on planet earth. Some passed the test marginally, while others crashed and burned. Forex trading passed this exam with flying colours.
There is a seat on the table in forex trading for everyone. Thanks to technology and the creation of innovative new trading styles and products, you do not need to be an expert trader to make money from forex. You can copy the trades of other successful traders and replicate their results. These days, the entrance of prop firms with funded evaluation programs has also eliminated the need for traders to start scouting for large sums of money as capital to trade. If you are good at trading and can pass the evaluations, you get funded with solid capital. If you are not even interested in active or passive forex trading but have good programming skills, you may as well decide to create trading software for the market. There is something for everyone in the forex market. This is why forex trading is a profitable and good investment option.
The problem with trading certain types of stocks or commodities is that there could be times when matching buyers to sellers could become problematic. This usually happens when trading illiquid assets, or when trading in such large volumes that it is impossible to get a good price for all your trades. Thanks to the presence of market makers, this is not a problem in forex trading. There is always a counterparty to match any trade position you take in forex. There is a ready buyer and a ready seller, which makes for a great market.
If you were to set up a brick-and-mortar business, you would need an office space or a rental space. In some cities, that can cost an arm, a leg, and more. You need inventory. You have costs to deal with: wage bills of staff, utilities, insurance, etc. You probably would need a permit or two from the government, depending on what business you want to do. Even with all these, there is no guarantee that you would make a profit. Of course, COVID-19 came forth and blew most of these businesses away. There is a video on YouTube about a luxury goods shop that sold just about any kind of high-end bags, sandals, wallets, and shoes you could think of. After three months of a lockdown, the shop owners went back to see all their luxury goods taken over by mold, effectively bankrupting their business. You can search out that video and see things for yourself.
With forex trading, you do not need all this expensive office paraphernalia. You only need a laptop/smartphone, internet connection, some trading capital and you are good to go. You need no office space, there is no staff to pay, no insurance cover to take, no permits to acquire, and no inventory to keep. You can virtually hit the ground running on day 1 and get your trades going from any part of the world.
You can take a trade in London in the morning, catch a train to France to set up another trade, and take a flight to Johannesburg, South Africa to close the same trade. The nature of the forex market is such that there is always activity in the FX market wherever you are, making it a true 24-hour market that never really sleeps.
With FX trading, you can create a lot of time for yourself and do not need to be occupied with it all day. You do not need to work long hours trading. There are many traders who trade at only specific times of the day and get their trade objectives completed in mere minutes, or a few hours at most. This leaves them quality time to do the things that are also close to their hearts, like attending the ball game of their kids, assisting in the local places of worship, or getting involved with a charity.
As long as human beings use different currencies in different parts of the world, travel around and have the need to interchange currencies as they do, trading forex will be here for a very long time. It can become a lifelong event. This can be a channel of guaranteed income if you are good at trading forex and are constantly matching the evolutionary trends of the market.
Forex trading is undoubtedly a profitable and good investment option for those who are good at trading and can explore the opportunities that the market has to offer. If you are not yet trading forex, the question should be, why not? Many have come to realize the profitable and investable nature of the forex market. At the height of the COVID-19 lockdowns in 2020, forex brokers began to see astonishing jumps in the number of new registrations. Why? This is because people found out that not only did the lockdowns and pandemic provide immense market opportunity, but forex trading itself was found to be immune to all the economic upheaval going on. This attests to forex trading being a profitable and good investment option.