Trading on the Foreign Exchange Market or Forex has become popular across the globe in recent years.The rise in Forex trading popularity can be attributed to the ease of access which everyone now has thanks to the advance of technology. Anyone with a smart phone and an internet connection can become a Forex trader and have access to an insane amount of income.
However, there are 3 good reasons why many people should NOT consider Forex trading as a way to obtain extra income. You could call these the 3 M’s of trading.
The first requirement for successfully trading Forex is the correct mindset. Trading, whether it be Forex or Stocks, has inherent risks involved and not everyone is capable of dealing with the emotional implications of investing their money in a volatile market. The correct mindset is critical for successful day trading.
It goes without saying that a correct method or trading strategy is also very important. Finding, developing and tweaking a winning strategy takes time and discipline. Forex trading is a business and, as with any business, you need the proper skills and knowledge in order to be successful.
Finally, money is what it’s all about. And that doesn’t mean that it takes money to make money. A small account can be built into a larger account over time. Money management is the key, which means being able to make small trades and let your account grow with time. But, this goes against human nature in our fast paced world–we want it NOW!
So, if you don’t have these 3 Ms, don’t consider trading Forex. But, if you are not risk averse, are willing to learn a few simple skills and can manage your money, trading Forex can provide part-time income or more for you and your family. Age or background is not important. It is commonly known in trading circles that young people from the age of 12 years have learned to successfully trade Forex. And it doesn’t mean you will be quitting your day job anytime soon. You will be able to make extra income, but it takes time and effort to become consistently profitable.
I traded options many years ago and was very unsuccessful. I just couldn’t seem to figure out all the technical and fundamental stuff. I decided that trading just wasn’t for me. But, one day a friend introduced me to Forex and I found that it was much easier to understand. Sure, the risk and volatility is still there, but the technical side of Forex just seems to be easier to get my head around. I haven’t looked back or regretted it one bit and now I’m a full-time Forex trader and coach. Trading Forex can be lucrative but, as with anything, in order to be successful, you need to develop skills and knowledge.