Working from home has many benefits. You have better control over your time and more time for the things that really matter, be it family, friends or hobbies. Maybe you have looked into working from home but being a writer or data processor aren’t really your thing. Have you ever considered online trading? There are thousands of people around the world that trade comfortably at home, making more money than you could imagine. Piqued your interest? Read on.
What To Trade
First things first, you need to ask yourself – what do I trade? There are a multitude of instruments to choose from – equities, futures contracts, binary options, single stock futures and commodities like oil or gold. The best? Forex. Besides offering over 330 currency pairs, covering all the major and minor pairs including EUR/USD, GBP/USD and USD/JPY, below are 4 more reasons to choose Forex.
The first thing you’ll learn about trading is that you have to keep your fees low, otherwise they eat up all your profits. And trading is about two things – risk management and profits. Forex offers the lowest fees in the game, charging only a few pips on the spread, which equates to 0.2% of the amount you are trading. Different platforms charge different fees so it’s important to choose wisely. CMC Markets offers tight spreads, regardless of the volatility of the market, and with 27 years of experience, it’s a no brainer where you should be looking first.
When To Trade
Now when do you trade? That’s up to you. The Forex market is open 24 hours a day from 5pm EST on Sunday until 4pm EST Friday. You can trade in the morning – for those early riser; afternoon – for those that enjoy some extra sleep; or at night – for those night owls. Due to the flexibility that Forex trading offers, it’s great for people who want to work from home.
Think you don’t have enough cash? We all have issues with cash flow sometimes Thinks again. You can trade with as little as 100 dollars. Forex is a geared instrument, meaning that when you trade with say, 100 dollars, depending on the gearing, you will actually be trading with 10, 20, 30, or even 40 times that. If you are quick you will realise that 100 dollars at 40x gearing is 4000 dollars. That means that if the currency pair you are trading moves just 1% you would make you 40 dollars. Amazing right? Yes and no. See, if it moves 1% in the wrong direction (Down if you are Long or Up if you are Short), you can lose that 40 dollars and that means you lose 40% of your 100 dollars invested.
This is where risk management comes into play and you think like a real investor. Having a stop loss (a price you set that if the currency pair crosses, it will automatically close your position) and keeping your positions small, i.e. risk management, is a worldwide accepted way of being a successful trader. If you follow those two rules adamantly, you will be better than 90% of the traders out there.
How To Trade
This is something you have to figure out yourself. Everyone finds a style that suits their personality and one that gives them their ‘edge’ over the market. If you like graphs you can look into classical charting, which focuses on visual patterns, like a Head and Shoulders, which tend to repeat themselves and give an indication of the price direction. On the other hand, many traders enjoy tape reading – this is looking at the real-time, live, buying and selling of the currency pair, to look for entries and exits. Otherwise, there are a large amount of indicators and oscillators and combinations thereof which are also worth looking into.
We hope we have helped you answer some of your questions on Forex trading. Any successful trader will happily tell you of the immense benefits of being able to work for themselves and grow their wealth via online trading. It is a profession like no other and will give you a deep understanding of the world and yourself. So… what are you waiting for?