When I was introduced to trading, Forex markets were still youngish, charts, a bit sluggish, and there were a lot of bucket shops that wanted your money out of your pocket.
I was quickly introduced to the market, and the market itself taught me the basic technical analysis techniques, and I was hooked. I found a plethora of books focussed on day trading, but nothing that helped me make real profit. I tried staying up late and getting up early, I even tried trading via a mobile device. Until I took a year for studying market action and reaction, price patterns, and psychology of the masses. After a year on a demo account, I started to make returns of my investments on a real account. The rest is history.
Honestly, day trading may bring you Learjets, Ferraris, Lamborghinis, and limited work weeks – but simply put, day trading isn't an option for someone who is stuck in a staff meeting when the market is roaring. Fortunately enough, Forex & CFD trading offers variety and no matter which kind of trader you are, you might find it very useful.
Live Your Life
Why are you trading? Are you trying to fulﬁl your desire to wake up at 3:00 AM and stare at currency charts for twelve hours straight? I don't think so.
Forex & CFD trading isn't like other businesses. You can't advertise your way to more sales or work your way to greater levels of success. The market doesn't care whether you spent 10 minutes or 10 hours planning a trade. It won't reward you for the extra time. The market will only offer a good trade when it is ready, you can't force a good trade with more time in front of the charts. Your mind needs time to recharge, and your desk chair needs time to re-shape after you have sat in it for several hours.
Additionally, your spouse or family and friends are going to grow tired of being abandoned in favour of the market. Take a break, go watch the sunset, ﬂy a kite, or call your mom. Do something other than try to make another buck in the market. I understand that the desire to become a successful trader is strong, but you can't create a trading opportunity simply because you want to trade, and you shouldn't abandon your life, loved ones, or hobbies in the meantime. Fortunately enough, both Forex and CFD trading offer that. It gives you the freedom of planning your time and making a little extra you always need.
With Forex & CFD trading, you can trade wherever you are, at whatever time you like. The only requirement is Internet connection. Forex lets you earn how you see fit, without answering to a manager. You choose when to start and finish your daily trading. In fact, you choose whether or not to work on any given day. But bear in mind that your profit entirely depends on your understanding of the market.
Trade in the Most Liquid Market in The World
Everyone wants to get profit, choosing to trade/invest in the world's largest financial market. With the average daily turnover of nearly $5.1 trillion, the Forex market becomes the world's largest financial market.
Now with CFDs on cryptocurrencies, the trading made it to a higher level. Being very volatile, cryptocurrencies are vulnerable to sharp price changes due to unexpected events or changes in market sentiment. For example, a sharp drop of almost 40% in the price of Bitcoin late last week, just before Christmas.
Source: BTCUSD H4 chart, Admiral Markets MT4, Nov-Dec 2017
Typically, CFDs are offered with leverage, which means an investors only needs to put down a portion of the total value of the investment or contract. However, leverage also multiplies the impact of price changes on both profits and losses. The upshot is that one can lose money very rapidly. But traders usually say – no risk, no reward. As Mark Zuckerberg, the founder of Facebook once said: 'The biggest risk is not taking any risk... In a world that is changing really quickly, the only strategy that is guaranteed to fail is not taking risks.
Variety of Trading Styles – Pick Your Own
With trading Forex currency pairs, CFDs on commodities, indices, shares, bonds, and cryptocurrencies, you have complete freedom to pick your own style and time frame. You can be a scalper aiming for short-term profits multiple times a day or you can be a swing trader aiming for a week of pips with just one trade.
Ultimately, you can choose to be an investor aiming for longer term trades that might (if executed properly) secure you decent income before you retire from your job.
The beauty of trading Forex and other financial markets is that you can develop your own trading style and be a unique trader among millions of others.
Possibility of News Trading
Traders often have an adverse reaction to trading the news due to the assumption that it is risky and unpredictable at best. I believe that this sentiment mostly comes from traders who use news trading strategies that do not take advantage of daily and interim Support & Resistance, or they chase breakouts caused by the news release, which leaves them paying the full price for a profitless trade. Fundamental events can be compelling trading tools for those who understand the bigger picture of Support & Resistance just before the news being released.
Most traders focus on trying to capture a few pips during the volatility that follows a major release, but that is rarely the best opportunity offered by trading the news. Fundamental events often jab into Support & Resistance zones during the short period of volatility following a release, and this provides the observant trader with a low-risk way to enter the market based on Support & Resistance. With news being continuously released around the globe, it is hard to imagine someone not being able to ﬁnd at least a couple of events to fit into their schedule.
Source: Session Map, Admiral Markets Supreme Edition
Traders are used to trading the London market – the cornerstone of Forex and financial trading in the world. The New York market is also very strong when it comes to trading volume, making the London/New York overlap the best session for trading in terms of volatility, liquidity, and market dynamics.
The Asian session (headed by Sydney and Tokyo markets during 22:00 GMT to 8:00 GMT) remains comes third, and those who can't trade the London and New York markets due to the difficulty of staying awake all night might participate in this session. Due to the optimum liquidity during London market time, traders might easily spot trends. Asian markets generally offer range-bound trading on most of the markets, while explosive moves can usually be seen on the JPY pairs and some indices, such as Nikkei (JP225) and Heng Seng (HSI50).
As you can see, the freedom offered through Forex & CFD market is unpreceded.
Cheers and safe trading,