If you’ve been following Pennysaverblog, you know that there are basically two things you can do to improve your personal financial state: you can either reduce your expenses or generate more income. This is why investing can beso important for the sake of your financial future.
Among the many investment instruments that you can now use to generate more income is foreign exchange or forex. Forex trading is not only accessible, but also very lucrative when you see the number of opportunities available in the forex market. So, should you invest in the forex market?
A Large Market
The forex market is incredibly big. The market runs for 24 hours as trading shifts from the New York market to Sydney, Tokyo, and London. The relative size of the market really shows the number of opportunities just waiting to be seized.
Depending on the trading platform you use, you also have around 50 to 70 foreign currency pairs to trade. The most popular ones are EURUSD, USDJPY, GBPUSD, and AUDUSD. These pairs are being traded all the time and changes in their values happen in real-time.
Take the $5 billion market volume and you have an interesting market to explore indeed. That brings us to our next reason, which is…
Low Entry Barrier
It is incredibly easy to get started with the forex market. There are a few trading platforms to choose from and a wealth of brokers to engage. You can actually make your first trade in a matter of minutes in today’s market.
There are also a lot of resources (and resource centres) to help you get started with forex trading. InvestinGoal is one of the best to visit if you need guides on every step you have to take to get started. The site is filled with reviews of trading platforms and brokers, news from different financial markets, and other useful articles.
The same low entry barrier is also apparent as you make your initial deposit. Forex brokers allow new and existing traders to invest as little as $1 into the forex market. You only need to set your trade size and leverage to suit your initial bankroll.
A Good Source of Income
As you venture deeper into the world of forex trading and the financial market in general, you will notice how you can always make a profit regardless of the way the market moves. This is another reason why forex trading is such a good investment opportunity.
In simple terms, you bank profits in the forex market by buying low and selling high, not necessarily in that order. You can open a short position (selling first and buying later at a lower price) when the market is going down, and a long position (buying low, selling later at a higher price) when the market is going up.
Even better, you have technical and fundamental analysis aiding you in your decision-making process. The more you understand the market, the more opportunities you will have at making good trades and banking profits from each of those trades.
So, should you invest in the forex market? The simple answer to this question is: Yes.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.