To paraphrase a famous writer, “Forex can change your life. But for the better? Well…”
There are lots of articles talking about the risks of online forex trading. But, when it comes to the question of changing your life, you really want to know if it’s for the better.
After all, no one spends time studying and risks their money to be worse off!
But first, we need to disappoint some people. Trading Forex definitely does not mean dropping your savings into a trading account, then suddenly becoming a millionaire who can divide time between sipping margaritas on the beach and driving a Ferrari.
No one suddenly makes a pile of money with forex trading, despite what that YouTube ad might have claimed.
A Dose of Reality
A much more common scenario for successful Forex traders is having a supplementary income to their current job, which helps build their savings for future endeavours.
Some FX traders do switch to full time, but usually, this is after gaining considerable experience and setting up other forms of passive income.
Like most market trading, results from forex trading vary. Conditions change, and strategies need to be updated.
So, for most forex traders, the income they get from it isn’t exactly consistent. This is despite most successful FX traders putting a lot of effort into making their trading outcomes as consistent as possible!
It’s an Investment
Many people do find forex trading to be easier than other sorts of financial investment. However, it’s still a sophisticated market.
It requires a sizeable investment in time and attention to learn how things work, and to get good enough at trading to consistently make profits.
Some people have a knack for it, so it’s easier than for others. But, like all things, no one is an expert in anything with little effort.
So, it makes sense that after spending a good bit of time learning financial instruments and getting consistently better at deciphering what’s going on in the FX markets, you won’t want to stop doing it. Which is why most forex traders are usually in it for the long haul.
They are not trying to get rich quick; they are trying to make a reasonable income over an extended period of time.
How Likely is a Change?
We have to address the elephant in the room, which is the small print on (reputable) forex broker ads: the percentage of potential FX traders who lose money.
Usually, it’s the majority, with up to two-thirds losing money.
Why? Well, that’s an entire article in itself. But basically, they are people looking to get quick, easy money and are neither doing their research nor practicing proper money management techniques.
There are several skills that you need to become good at forex. These include discipline, risk management and proper investment administration. And these are all skills that are useful in other areas of your life!
This is one of the reasons that some people find transitioning to forex easier than others. They already have many of the personality and technical skills that underlie the market analysis part.
In fact, there are some people who are really good at the forex market analysis part but haven’t mastered risk management, or emotional control. Therefore, they find a more lucrative career in financial analysis instead of plying the markets themselves.
It’s not all about the Benjamins
Basically, forex can change your life, most reasonably by supplementing your current income. How much of a change that will depend on what your life looks like now, how good you get at forex trading, and what you do with the extra money.
But it can also change your life in other ways as you acquire the knowledge and skillsets that make you a good forex trader, such as understanding the economy, how to manage your money, and evaluate risks and probabilities.