Forex is the smartest profession in the world and we think it is the best way to make a livelihood. This is a kind of profession where you can enjoy your life fully if you are just smart enough to make a good move in markets. Forex can be considered as the best business in the world and there is lots of reason for that. In this article, we are going to talk about those reasons so that you can have a clear idea about it.
Think about when you are going to start a business then the first thing you need is to have is big capital. Let’s say you need $100,000 and you don’t have it at the moment, so you go to the bank to get some loan. Trust me it is hard to get any amount of loan from a bank for business without having business experience is not possible. You will be rejected before you can see the loan manager. You may have $1,000 but it is not possible to start a business with it and here is where the Forex market is so suitable. You can trade the equivalent of $100,000 with just $1,000 in this market. This is called leverage.
You can get a loan of any amount if you just have 1% or 2% on that amount. So the Forex market is giving you borrowing power as much you want but no other market will give you is an advantage. But there is a dialogue in Spiderman movie that goes like this “with great power comes great responsibility”. So this borrowing power has some disadvantages if you cannot use it properly and it also may ruin your financial condition. An experienced trader at Saxo always uses this leveraging power to boost up their trading career while bad traders speed up their finishing in this industry.
Limited down risk
The biggest risk when you are running a traditional business is you might lose more than what you are invested in your business. Imagine you are running a brickfield and you have ordered raw material for that and you extended your lease of that field for 1 year. In this 1 year, you thought to sell all the bricks that will be made from those raw materials you brought. After 6 months you found out you have just sold 10% of brick and it is nearly impossible to sell those left amounts in the next 6 months.
So now you can only pray for a miracle or shut down your business and get sued by your landlord and supplier as you could not keep your promise. In some cases, your assets can be seized from you for repaying your creditors or you may just sold everything and book a ticket to Australia and never look back here. But in trading you may lose 99.99% of the trading balance of your trading account but it will never be going to take away your other assets.
Business is a good way to make money from what you have but the time when the business is not going in your way that moment is very harsh that you cannot quit it anytime. Because, if you want to quit when everything is going against you then you might lose not only your business but also your assets. But in trading, if you are facing few losses then you might quit trading for a few days and nothing going to cost you for that and you don’t need to answer anyone for that. So flexibility is a big advantage if you consider Forex as a business.
No inventory, staff problems
In trading, you just need to have 2 things and they are you and confidence in yourself. You will never need a place as your inventory or neither needs any stuff to maintain your business. You are enough for your Forex trading business.
After reading this article we hope you are motivated enough to consider trading as the best profitable business in the world and you might think about making a career from it.