In 2019, February, more than 2.86 million Americans quit their jobs. Millennials, Gen Z-ers, and Gen X-ers comprise the highest share among those who have quit their positions in the recent past.
While it is easy to assume that their pain point was money, it is simply to fair to move forward based on assumptions. More than 27% of these people stated that they were looking for more meaningful positions.
Why are so many professionals delving into Forex trading?
With every passing year, the balance between work and life is tilting in favor of the career very conspicuously. The job satisfaction is dwindling in the horizon as people continue to seek more responsibilities and meaning in the job they hold. Amidst this chaos, the smart few are trying to moonlight as startup co-founders and day traders.
However, with the threatening level of failure (90%) among the US startups in 2018 and 2019, a large number of youngsters with an understanding of finance are delving into stock and forex trading.
The risks of quitting a stable 9-to-5 job and becoming a Forex trader can be significant, especially if you have no prior experience. Then again, every new prospect of becoming self-employed comes with niche pros and cons that you cannot ignore. If you are considering giving up your current job to become a day trader, it is time to face reality – forex trading is challenging to understand, but once you get a grip on the market trends, it is obvious money-making a career move.
What are the advantages of forex trading?
Several new traders and veterans prefer Forex trading due to its high liquidity and 24/7 availability. It is the ideal “job” for those who are interested in maintaining flexible work hours. It is indeed a privilege to the many, who now trade via their laptops or mobile phones while traveling or enjoying a day out with their friends. The high flexibility and the promise of high returns make it a lucrative career for millennials and Gen Xers alike.
Here are a few pros of Forex trading that you cannot ignore –
The low cost of investment
The cost of learning and trading are quite small. Take a look at legitimate institutions and online resources that teach the latest technical analysis methods, advanced trading options according to market conditions, and the forex strategies that constitute a smart trader.
Additionally, a forex trader does not have to worry about brokerage charges and commissions. To learn more about forex trading visit the official Trade Pro Academy website.
Ideal for different trading styles
Since the forex market is a 24/7 deal, multiple traders come online according to their convenience. It is incredibly beneficial for the new traders, who are still testing the waters.
For example, traders in the US, who trade in the post-midnight hours, are online when it’s daytime for Australia. They can trade USD during Australian business hours. During such times the market is highly stable, and they can garner high-volume trade at low-profit margins, but enjoy higher stability. They can compensate for the low profit by indulging in high-volume trades.
No central regulator
Most forex traders enter the domain because it is a global over-the-counter trading market. There is no interference from the central exchanges or regulators of the different countries.
Decentralization of the market prevents unpleasant surprises. The stability is in sharp contrast to the centralized exchanges where huge price fluctuations are not too uncommon due to a corporation declaring sudden closure or reporting huge losses.
The forex market has one of the highest liquidity compared to other financial markets. It is possible due to the presence of the highest number of participants in the market. It eliminates the risks of price deviations. That adds to the predictability of the market prices, thus enabling the new traders enough opportunities to indulge in rewarding trades with lower risks.
The presence of key participants in the forex market removes the possibility of market price manipulation. There are no price anomalies. It thereby facilitates more efficient pricing, while maintaining the trademarks of an equity market – high volatility during the opening and closing hours and considerably predictable prices during the afternoons.
Easy to enter and trade
As we have mentioned above, there is a wide range of traders, with different styles of trading now active in the Forex Market. Short-term traders, as well as long-term trades, can become rewarding for the respective trader with the right formal training and knowledge base.
Currently, there are hundreds of technical indicators that aide the short-term trades and updated fundamental analysis theories that make trading rewarding for the long-term forex traders. It is a diverse market that welcomes and nurtures forex traders of all expertise and styles of trading.
On the forex market volatility and major currencies
In the current Forex Market, there are 28-major currency pairs that involve 8-major currencies. The level of volatility in the forex market can be the short-term trader’s friend. Almost all eight major currencies display frequent “instability” or price swings. It is up to the trader to pick the right pair depending on convenient timing, economic development, and their history of volatility.
The forex market is less susceptible to insider trading and price manipulation as compared to the equity market. Observing the market for a couple of days and studying the trends of the currency volatility can help the trader to switch from one pair to another to maximize his or her profits.
Every profession has its caveats, but only something as flexible as forex trading has the incentives for the new trader to look past the risks and focus on the advantages. Those looking to jump careers and taking control of the balance of their professional and personal lives will find the life and career of a forex trader to be both rewarding and relaxing.
The simplified tax rules that apply to the individual forex trader make the profession even more lucrative for the youngsters of the day.