Forex – The Best Way to Start Your Trading Business / Career.
Starting a Trading Business just like any other business definitely has its risks and potential financial losses.
Starting your Trading Career/Business without knowing the characteristic of the financial instrument used is like going into Casino and prepare to lose all the money you had on Casino tables.
The Table below although it has been put too simply, shall illustrate the characteristics of the different financial instruments which show why Forex may be the Right Instrument to be used by Newbie in the Trading Business.
| Instrument | Forex | Futures | Options | Stocks |
| Liquidity | Very High | High | Caution | Caution |
| Pattern Day Requirement | None | None | 25,000 USD | 25,000 USD |
| Capital | Low | High | Low | High |
| Commission | None | 2.50 – 15 | 1 – 13 | 1 – 25 |
| Slippage | Least | Least | Most | Most |
| Gap / Event Risk | Least | Least | Most | Most |
| Trading Hours | 24 | 24 | Market Hrs | Market Hrs |
As you can see that Forex can get your Trading Business started with very minimum risk. You can started your Trading Business with as little as $ 1000 USD.
Of course the possibility of starting your Trading with such a small capital does has its own pschological risk.
The Recommended Step when starting your trading business are:
1. Use Forex as the Financial Instrument.
2. Open an account with online forex broker.
3. Start doing paper trade to understand the features of the online trading platform.
4. Deposit your Initial Capital.
5. After you are confident in using the platform and confident of your Trading Strategies, you can start trading.
6. Only Trade in 1 standard lot first when you are still new in this business.
For further Forex Trading Strategies shall be discussed further in the appropriate sections
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Disclosure:
Trading foreign exchange is not for everyone. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doub
