What Is Career in Forex and How Does It Work?
Forex is one of the most heavily traded markets because of its high liquidity and ease of accessibility. A career in forex comes with unlimited possibilities right from one being their own boss to being able to make a fortune, with only a laptop and a good internet connection.
Forex trading is an art of speculating on world currencies. Just like in any other form of speculation, a career in forex entails buying a currency at one price and selling it at a higher price. Forex market also allows such speculators to sell at one price and buy at a much lower price.
A basic forex guide to remember is that currencies always trade in pairs. For every foreign exchange, transaction, one currency must be exchanged for another. For example, EUR/USD lets people know how many dollars they will need to pay to buy the Euro.
The Forex market also relies on symbols to symbolize a particular country currency, i.e., USD for U.S dollar, GBP for British Pound m JPY for Japan Yen.
photo/ Gerd Altmann
How to Get Started
For novice traders who are getting started into the forex trading business, dailyinvestnews.com should be a one-stop shop for all the basics needed to launch a profitable career in the trillion dollar marketplace.
The site offers insights on the best forex trading tools needed to make a career in forex trading. It also comes with a list of some of the best forex trading brokers that one can open an account with to launch a forex trading career.
Is it possible to build a career in forex? Well! The answer is yes, as many people regardless of background and status have aced the art of forex trading going as far as becoming multimillionaires if not billionaires. However, to build a successful career, it all comes down to patience, trading skills, and discipline.
For novice traders, forex trading practice is a must if one is to grasp all that is expected of them before putting real money to use. When starting out as a forex trader, it is important to open a demo account, with any of the recommended forex brokers to first train with fake money prior to opening a real account. The best brokers for beginners come with the best forex platform ideal for trading.
One can also spend some time in going through forex trading books as well as content online, in a bid to get valuable insight on how to go about forex trading like a guru.
Why Forex Trading
While Forex jobs are some of the best when it comes to paying, one must also be ready to contend with strange working hours as well as long working days. Some of the best forex careers include Forex Market Analyst and Professional Trader/Institutional Trader.
Most forex traders try to avoid the limelight. However, there are those that have risen to stardom having posted incredible results for decades. Top on the list is billionaire trader and investor George Soros who netted a whopping a $1 billion on short selling the British Pound in the 1990’s
Stanley Druckenmiller is another high profile forex trader who made a fortune trading with George Soros. Other high profile forex traders include Bill Lipschutz and Andrew Krieger.
Forex Trading Pros
Leverage
Leverage has led to the emergence of some of the best forex traders, in part, because it only requires one to put a small initial deposit to make trades. Margin trading allows people to provide only a small percentage of the overall value of a given position. What this means is that with $100, one can open a position valued at $1,000.
24/7 Market
Forex trading is a 24/7 market, which allows people to enter and exit positions any time of day without restrictions as is the case with trading shares and indices. Forex traders are always in a position to respond to currency fluctuations without having to wait for markets to open.
High Liquidity
Liquidity is of utmost importance in any market. Liquidity allows one to enter and exit positions with ease, given that the forces of supply and demand are balanced. With a turnover of over $5 trillion, Forex trading is the most liquid market in the world.
High liquidity eliminates the possibility of price manipulation, which also allows large orders to be filled without large price deviations.
Costs
Forex trading is cost-effective given the low brokerage and commissions charges relative to other markets. Recommended forex brokers make their money from spreads, significantly reducing the costs that traders have to part ways with.
Bottom Line
Top currency traders stand out from the rest of the crowd in part because they treat the forex market like any other business. Perseverance, efficient capital management techniques and desire to learn something new, each day, is what has allowed most traders to make a fortune out of forex trading.
Author: Nick Parsons
