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Opportunity, learning lifelong skills and liquidity are the biggest reasons why you should consider investing in Forex.
You no doubt are already aware of the fact that Forex is the largest, most liquid market in the world. From mum and dad investors right up to the largest institutions including central banks, everyone can access and invest in Forex.
At the basic level, investing in Forex is the buying of one currency while simultaneously selling another.
For example, if you thought Brexit is a bullish opportunity for the British Pound, then you can buy the Pound and sell the US dollar.
And, accessing the Forex markets has never been easier, faster or cheaper than it is today. Every Forex broker will provide you access to free software, free data and low-cost trading, 24 hours a day, five days a week.
But today we are going to focus on two key reasons why you should consider investing in Forex.
Let’s jump straight into them.
The modern definition of financial freedom is having the monthly cash flow to cover your bills without having to work. This means your investments or investment assets are producing income for you.
Learning the skill of Forex trading is potentially one of the most rewarding skills you can have.
We’ll take the example of a 65-year-old labourer, whose body has aged to the point of not being able to work and earn an income based on his trade.
Once he stops working, his monthly income dries up. Of course, there are government pensions but hardly the type of money to enjoy a comfortable retirement with basic creature comforts.
Consider the alternative.
Over a handful of years before retirement, he studies Forex trading and creates a handful of trading systems. Nothing spectacular but perhaps two different systems that historically and in real-time testing proved to make 15% per year.
Now, instead of using his hands and relying on physical labour to earn money, he can leverage his learned skill to extract a steady income from the markets.
Such an empowering skill set in being able to use your skill and financial resources to build your wealth year after year.
Investments which are liquid mean you can move to cash quickly. Investment homes are not liquid. A business is not liquid.
Forex is liquid. Over US$5 trillion run through the markets each day. You can liquidate your positions with ease 24 hours a day, five days a week.
Many investors start with low-cap speculative stocks as their financial resources are limited. Then they move to blue-chip stocks as they find getting in and out of small-cap stocks difficult.
Then they experience a major economic shock, which always happens when the markets are closed, and their shares gap down on open the next day, losing significant value.
Forex is a 24-hour market. You can buy and sell 24-hours a day. This means if an economic event is moving the market, you should be able to liquidate quickly.
As your wealth increases, it is a natural progression to get involved in Forex investment.
To put the icing on the cake, many of the methods you have used to analyse shares work equally as well when trading the Forex markets.
You can leverage your technical analysis and fundamental skills and apply them to the Forex markets to access more opportunity.
For the full breakdown on why Australians should invest in Forex, check out our article: 7 Key Reasons Why Australians Invest In The Currency Markets.
