Most of us love traveling lifestyle, but balancing both income and expenses while traveling is most challenging, a digital nomad lifestyle may look more adventures and exciting as we keep traveling from one awesome beach house to another, but it does come with a big cost, there are many ways to earn money to be a successful digital nomad like web designer, Online tutor, App developer, SEO specialist, Social Media Marketer and there are many more opportunities to become a successful Digital Nomad to one such way is Trading in Stocks and Forex is one such way.
To become a successful trader it takes lots of effort in learning lets to begin with understanding about forex Market…
What is Forex Market? and advantage of trading in Forex
Before we understand about forex market, let’s understand what is MARKET? I hope you all are very familiar with the market.
Yes, you got it Right. The same market you visit to your daily life needs, when you are in need of fresh green vegetable you will visit the nearest Vegetable market, or if your requirement is meat, you will visit the meat market,
A market is a place, platform or system to exchange of goods and services or in simple terms to where a buyer meets sellers.
There are various segments of market namely Real Estate Market this market typically involves agents representing both buyers and sellers for land, Job Market, a platform to connect employee and employer
And Financial Market, A platform to exchange economics and the financial instruments are Stocks, Currency/Forex, Bonds, derivatives, money market, commodity, cryptocurrency.
Now let’s understand about Forex.
Forex is an abbreviation of Foreign Exchange, also known as Fx or currency market and it is a place currency are traded, and the daily turnover exceeds over 5 trillion dollars, If compared with combined world stock market transaction, It doesn’t even come close to this market.
Why Fx Market.
Exchanging currencies are important to conduct imports and exports, a country like India imports the mobile phone from China and has to make payment in Dollars equivalent to chinese yens, and India on the other side provides software services to the European country such various purpose of exchanging currencies globally makes the foreign exchange market large and easily liquid,
Pros and Cons of Fx
Fores is a great starting point for traders, but many do end up trading excessively, because of leverage, where you only have to put up two percent of an overall contract size compared to one with the stocks, a small account can trade large size where win can be quite big you only need small deposit to obtain it.
Fx is a 24 hour market, with a laptop and internet connection you can trade any hour of the day from anywhere in the world.
Now, let’s discuss about the downside of forex, well let’s get back to leverage.
- Big losses, If you are clueless about the exposure and how to wisely trade with leverage.
- 24 hours, yes you could trade around the clock but there is handful of peak hours. When the moves are large it is worth your time trading.
- No central Exchange, The exchange is actually a broker but now regulation has clamped down the bucket shops that have dominated the forex industry for years.
Learning to trade forex can be a wonderful opportunity, success only through determination and professional mindset with understanding risk.
Trade forex like running a business with a reputed broker
Keep learning with Biker Monk
RISK DISCLOSURE: Trading on leverage involves significant risk of loss to your capital