I would combine it with some safer investments. There are stocks in the FTSE that pay over 5% dividend, If you build up a position with regular buys over time the price averages out and you are somewhat insulated from the ups and downs of the stock market. Reinvest the dividends and you get a compounding effect.
Among other reasons, I started trading because of its portability and the potential if supplementing my pension in years to come with it. I didn’t consider building up a pension pot, merely some extra spending money
[QUOTE=“eddieb;724478”]Among other reasons, I started trading because of its portability and the potential if supplementing my pension in years to come with it. I didn’t consider building up a pension pot, merely some extra spending money[/QUOTE]
I started trading for it’s potential & I see it as a constructive use of my time.
I work a 5-4-5 shift patterns so when I’m working 10/14 days, I’ll trade the higher TF’s & then when I’m only working the 4-day fortnight, I’ll put in more chart time & look at lower TF’s. I see FX as a worthwhile use of my time off as I’d otherwise have the Xbox on or something.
I work a full-time job, invested in property, my wife & I are contemplating investing in bonds - Forex is just a side investment opportunity (if it pans out). Hell, even placing 1 or two trades a year (regardless of the TF) & making anything more than 0.5% has your money working better for you than having it sitting in a bank.
As a business, trading requires constant research, evaluation and discipline. There are no guarantees in the trading business, and you could work a 40-hour week and end up losing money. Anyone considering trading should make sure they have both the personality and financial means to take on this type of business activity.The ease with which you can start trading (just open a trading account and hit the “buy” button) in no way implies that becoming a successful and profitable trader is easy. Many of the 90% of traders who fail within the first year do so because they start trading without having developed any type of logical business or trading plan.
For us retail traders, with small investment, trading should be like a way of getting some extra cash every month, from which you can pay some of your bills or carry out some major expense in your house after collecting profit from 4 to 5 months, but relying only on trading needs a big account.
Forex can yield great returns and compete with an agressive investment, but the risks are high. I think stocks are a more viable alternative as an investment, as well as bonds if you’re looking at the longest term and retirement. This is especially true if you are a passive investor.
Forex, Stock Trading is just like any other business. It also has lost, profits and breakeven period. But due to the rise of the internet, Forex trading, stock or any other asset had become easy to trade.
But here is the truth - Trading forex or stock is easy to get started BUT that doesn’t mean it is easy to trade profitably months after months.
To be a consistence profitable trader you have to treat trading like it is business.
one thing about trading forex as a business, I always wonder how “other” costs are handled… Health insurance and things of that nature. I want to trade full time but it would appear to “offset” that cost, you would have to make SIGNIFICANTLY more than you would now just to almost break even…
