Do you have to be smart to be a Forex trader?

Do you have to be smart to be a Forex trader?

In order for someone to be able to move their money in financial markets with more or less success, one should not be very intelligent. Or rather … do not look at the importance given to the IQ score.

There are many people who, as young people, were misnamed as “slow” students, but often score high on different bits of intelligence. When they participate in something personally meaningful to them, they come alive and can become brilliant.

Forex Trader

Because everything is linked in the financial markets and if you want to operate in the currency market (or Forex), for example, you will have to study the correlations between the currencies between raw materials and exchange rates.

Know that there are data every week that come out and affect each other more significantly…

Benefits and advantages of foreign exchange currency trading

Forex trading has many advantages. Here are some reasons why many people prefer to trade in the foreign exchange market rather than in other markets.

24-hour non-stop trading

Forex trading is conducted 24 hours a day, all day long. Every day starts in Sydney and then travels around the world, followed by Tokyo, London, and finally New York. You can’t hear the ringing of the market opening and closing, and there is no such thing as a central market.

Traders can make decisions based on economic, political, and ongoing social events—from day to night. Therefore, the foreign exchange market is ideal for those who want to work part-time because they can completely control when they trade.

No trading commission required

Unlike other markets, foreign exchange transactions do not require government fees, commissions, transaction fees, or even clearing fees. A broker can earn from the compensation called spread that they can obtain.

High leverage profit margin

In the foreign exchange market, there are often many options for leverage. This allows traders to control the value of large quantities of contracts with a small number of deposits.

Therefore, this allows them to invest a small amount of capital in the early stage to obtain profits, but also to minimize capital risk.

Many Forex brokers offer a 50, 100, 150, or even 500:1 Forex trading margin option for trade margins. For example, in a 100:1 Forex trading account, $100 can give you $10,000 in the real money market.

High leverage is not for everyone, but the full range of options offered by online currency trading companies can make leverage a powerful money-making tool.

The thing to remember is that the higher the leverage, the easier it will be to lose, but it will be easy to make big money.

Trade flexibility – anywhere in the world

The popularity of the Internet allows Forex traders to enjoy almost complete freedom. A computer, with a network, plus an active Forex trading account, from one of many brokers, you can trade with people from all over the world.

Forex trader

Both professional and personal Forex traders can travel around the world in luxury, but wherever you are, you can maintain real-time contact with the market.

This type of freedom is something you can’t enjoy with a large company employee elsewhere.

High level of liquidity

The foreign exchange market is vast, with an average daily volume of $3.98 trillion. Large scales then bring high liquidity.

This means that you will be able to buy and sell a currency pair at the touch of a mouse, which will make it easy for traders to flow in and out.

Once an ideal goal is reached, traders can even use automated tools to settle trade positions on their online trading platform.

For example, once the profit amount reaches “X,” the trader can set the trade to close, which is called “limit order,” or once the loss amount is as high as “Y,” the trader can close the trade, which is It is called a “stop-loss order.”

Risk-free practical ability

You will find that most online Forex brokers will provide you with the opportunity to use the demo account to practice trading, to improve your skills, and to understand how the market works before directly investing in your hard money.

In brief, these demo accounts let you trade in real-time Forex news, using a range of charts and tools just like you would in a real account.

Author : Michael Fasogbon

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Michael Fasogbon is a professional Forex trader and cryptocurrency technical analyst with over five years of trading experience. Years back, he became passionate about blockchain technology and cryptocurrency through his sister and has since been following the market wave.