The currency Forex market is a financial market that can provide you with opportunities to make money 24 hours a day. Although many love currency trading, it's definitely not for everyone. If you are trying to decide whether you should get involved, here are three reasons that you might want to stay away.
1. Little Money to Risk
Traders who have very little money to risk should probably stay away from Forex trading. The currency Forex market is not a market for the faint of heart. This is not a market for someone who is making minimum wage and can't even afford to keep the lights on in their apartment in the projects.
If you are struggling just to get by, you do not need to risk any of your money in this particular market. It is extremely risky and there is a good chance that you could lose every dollar that you put into it.
Until you figure out a trading system, you will most likely lose some money at the beginning. If you risk you rent money on currency trading, you're probably about a month away from getting evicted. Even though you can open an account with $50 or less with some Forex brokers, that does not necessarily mean that you should. You will not make enough money to justify wasting your time. If you have some free time and you want to learn how to trade, this can be a good strategy to use. If you are doing it just to make money to get you out of your current situation, you are most likely going to be disappointed. Come back when you've got at least a few thousand dollars to throw down.
Another reason that you may want to stay away from the currency Forex market is being undisciplined. Individuals who cannot stick to a strict set of rules should most likely spend their time doing something else. Go be a rogue cop in a big city and take down a lord with a rocket launcher and a pair of brass knuckles. If you can't follow the rules, you're better staying away from the foreign exchange market.
Even if you have the best Forex system in the world today, you cannot make any money unless you can stick to the rules and follow system. If you can't follow the system to the letter, you will usually end up losing your shirt. Unless you like going shirtless, this is not a wise course of action.
3. You Don't Like Money
You might also want to stay away from currency trading if you don't like money. If you are one of those people who suffer from chrometophobia, this is definitely not your game. Yeah...chrometophobia. It means that you have a fear of money. Go look it up if you don't believe me. It wouldn't make much sense to get involved with currency trading if you do not like dealing with money. Just like if you did not like the idea of partial ownership in a company, you wouldn't go invest in the stock market. In this market, you actually trade money.
But seriously, you can really make a lot of money trading this market if you know what you're doing. If you don't like the idea of being able to live on your own terms and you enjoy working a 9-5, then by all means, go back to your job at Orange Julius and make me a smoothie.
Obviously I laid it on pretty thick in that last section, but you really can make some decent money in this game if you know what you're doing. If you don't think you can handle the risk that comes with it or you can't follow the rules of a trading system, then it's probably not for you.