Getting people to like forex is not difficult at all, all you need to do, is to make them understand what forex actually is. The problem is that a large number of people have a negative image of financial markets in their mind, and so when mention is made of forex or even stock trading, they tend to become defensive. Even professionals within the financial industry do shy away from forex, but simply because they do not really understand it. There are many benefits to trading forex, notwithstanding its many risks.
In the following paragraphs, we will focus on these benefits of forex trading as a how to get people to like forex guide, in the hope that it can create warm feelings in anyone, thinking about forex.
First and foremost, forex trading is a comfortable profession. It is one of those activities that are generally reserved for the elites of any society. In forex trading, you can choose to sit down or stand. There is no rush, unlike other professions where you have to meet deadlines. In fact, forex trading is all about patience. Many of the best forex traders in the world would appear to be lazy and simply idling at work, meanwhile, they end up more productive than most of the other professionals.
24 hour Market
The foreign exchange market is a 24 hour market. This is because it is decentralized, and therefore spread out all over the world from Tokyo to New York. Although it is a 24 hour market, there are still certain limitations anyway. Heavy liquidity is only available during three sessions: the Asian, the European and the American trading sessions. These liquidity limitations on the other hand, affect only institutional traders and other big players in the market. For the average retail forex trader with up to $200,000 of trading capital in his or her account, the market practically remains a 24 hour market. Forex trading starts from Monday mornings in Japan, which are Sunday nights in Europe, till about 10 pm European time, on Fridays.
Forex trading was initially a game for the big boys, like commercial banks and other heavily funded institutions, but the advent of cheap computers and the Internet, brought about retail forex. Retail forex is relatively cheap to engage in, with some brokers even offering accounts for as low as $20. Then there are no transaction costs, no commissions (at least on small accounts), no government fees, no exchange fees, no clearing fees e.t.c. Brokers typically get paid from offering a spread (a bid and an ask).
The forex market is also a very flexible market. You can trade with as little as 1 cent per lot, or with as large as $100,000 per lot. Also, your nominal volume can go anywhere from $1,000 up to a few billion dollars. This peculiarity of the forex market, is in stark contrast to other markets traded over exchanges, where there are usually high minimum contract sizes, and also maximum contract sizes. It is a very diverse market given the large amount of institutions from all over the world, who engage in it.
The forex market is the largest and the most liquid market in the whole world. There are trillions of dollars traded every day, but because of the decentralized nature of the market, it is impossible to put an exact figure on its size. There is hardly any major financial institution in the world that in not engaged in forex trading. Most of the major institutions conduct trades in billions of dollars with one another, everyday. It is therefore impossible to monopolize or be hijacked by any single institution. There are also thousands of brokers like CMC Markets, who are engaged in processing trades from traders with widely different account sizes.
Leverage & Scale
Due to its peculiar nature, the forex market offers amazing leverage possibilities. Leverage in forex can be as conservative as 10:1 or as eye-popping as 500:1. It is well known that leverage can be a double-edged sword, but in the hands of a good trader with a good system, forex offers the highest possible Return On Investment among 99.9% of businesses in the world. Using the mathematical concept of compounding, it is theoretically possible to build great wealth starting with modest amounts. In reality though, not very many people have achieved such, yet there are those who definitely have.
Forex trading is one of the greatest business opportunities that was ever developed. It is fun, it can be captivating, thrilling and enchanting. It can also be a risky business when not approached properly. Forex trading requires a lot of learning, it is therefore a high-skill job, but one that can reward handsomely.