I never traded forex and I never will. In my opinion the forex market is the worst place for a trader. Yes, a lot of liquidity attracts people, but in the forex market liquidity can disappear quickly. There a tons of other markets out there with a bunch of liquidity. I mostly trade indices and commodities. The trading world changed a lot over the last two decades. I enter “trading” into google or youtube and I just receive forex, forex and forex again.
T his might be your personal opinion otherwise forex is very popular business . It is right here risk is high than any other routine business but when you do forex with proper learning this risk can be minimized. Then here are many profitable traders who are working full or part time with forex market.
Exactly my thoughts financial freedom work from home is a huge selling point
However incorrect trading practices and poor trading psychology could ultimately lead to financial ruin
Forex trading means trading in foreign exchange.
It has the following advantages and disadvantages:
Advantages:
- Access to global markets
- Great liquidity.
- Wide range of currency pairs.
- Ability to go long or short.
- Low transaction costs
- 24*7 trading
- Use of leverage.
Disadvantages:
- Regulation of the forex market is difficult ,so it poses counter party risks.
- Difficult in managing forex trading operations.
- Markets are not open for trading on weekends.
- High leverage means high risk
- Highly volatile markets.
- The structure and stability of various countries is also a threat.
Each coin has two sides. Similarly Forex trading has many advantages but some demerits too. Forex rates are influenced by many factors mainly economic or global politics that can be difficult to analyze information and draw conclusions. It is available on high leverage but it can easily turn into a loss making nightmare unless one has a strong knowledge of leverage and of course control over emotions.
For me:
Advantage- open 24/5 and financial independence
Disadvantage- high volatility.
For me, Advantage- Wide options and profitable gains
Disadvantage- Risk factor
Pro – highly liquid and offers good opportunity to make money
Con- uncertain and risky
Advantages would be the abiliy to earn money with suitable working time from anywhere on the world I would say without doing much job once all working and disadvantages would be something like for example I am not even sure what - except main nonguarantee of earning funds.
Yes and Risk is everywhere.
This market is one of the largest trading markets, with very high liquidity levels and 24/7 trading choice. One can gradually earn very high here, if proper attention is paid towards managing money and risk – that is the advantage for me.
The disadvantage would be the high level of volatility here which makes the venture risky. Also, excessive use of leverage makes it a tough task.
For a trader like me, high leverage is the best and the biggest advantage is that forex brokers allow traders to buy and sell using significant amount of leverage.
There are many advantages of forex as it facilitates traders for time and investment then they are not bound to do daily or fix hours trading. They can use leverage for trading not need to invest a high amount in this business.
Some disadvantages are als there as people not learn it properly so they are fail to cooperate with market. Forex market has unexpected moves volatilty so they feel it is very hard to get profit from trading.