Forex for absolute beginners; The advantages of starting a Forex business
The foreign exchange market, also known as Forex or FX, is a decentralized global market where all the world’s currencies are exchanged and is the biggest business on the planet, with over $5 trillion dollars traded each day by banks, financial institutions, traders and investors and since the advent of the internet, retail traders who make up an ever-growing proportion with over 9 million retail traders currently getting involved every day.
Foreign exchange currency rates constantly fluctuate, and essentially, forex traders bet weather exchange rates will go up or down. If they bet a currency exchange rates will move up, and it does, they make money, while if It moves down, they will lose money. Traders can control how much they lose on a trade if they are wrong, but they cannot control how much they win because there is a great deal of skill involved in judging where to exit a trade and take a profit.
The advantage of trading in the forex market is that you can start with minimal investment with some retail brokers allowing you to commence trading with as little as $10, although, you would probably need at least a couple of thousand dollars to realistically make any kind of positive impact to your bank account. You can trade Forex full time, where the market operates 24-hours a day five days a week, or you can just commit to a few hours per day in order to supplement your income or to suit your lifestyle. All trading accounts have a stop loss software feature so you can stop your losses running out of control, and a designated take profit feature, which allows you the ability to not have to be sat at your PC screen all the time monitoring your trades.
Other benefits are that you do not have to buy stock; you do not need an office; you do not need to employ staff. All you need is a computer and a broadband connection. And what’s more, this industry is recession-proof. It simply keeps churning over, day after day. This makes it one of the lowest start-up costs in opening a new business and is one of the main reasons that retail traders have chosen to get involved. What’s more, if you are in the UK you don’t need to pay business rates for an office, you do not need to complete reams of new business start-up documentation or form a new company. All you need to do is trade Forex via a spread betting account, and any winnings are classed as gambling under the current laws and, therefore, not subject to income tax!
However, in order to succeed, there is a steep learning curve. And just like any other profession, you will only get out what you put in; in other words, you will need a Forex education. But do not be alarmed, because here at the Forex Academy we have all the educational tools at your disposal in order to teach you all you need to know about how this market works, and what you will need to do in order to be a consistent winner.