I think you’ll agree with me when I say:
Forex trading is probably one of the fastest and most lucrative ways to make money online.
But is forex really worth it in 2023?
In this post, I’m going to share my findings and I’m going to give you the honest truth.
So let’s get started.
Is Forex Really Worth It?
The answer is… it depends on who you are.
But in this, I’m going to show you exactly why the forex market is still relevant in the future.
Firstly, the forex market is THE most liquid market in the world.
Think about it, everybody exchanges money for goods and services.
This will not end.
Each skill learned through trading the markets can be transferred to any future markets such as Cryptocurrencies.
So, the skills you learn are always going to be with you – I’ll touch more on this later on.
Secondly, you can make a huge amount of money from the forex market.
Many people don’t believe this.
I’m here to tell you that it’s true.
And if you have the right skills, it’s even easier than in other markets.
But this doesn’t mean YOU will achieve the same results.
It depends on who you are as a speculator though:
Do you want to buy and hold to wait for the markets to rise over a longer period of time?
If so, then the stock market would be better fine-tuned for you (unless you lower your leverage in your brokerage account).
Or do you want to buy and sell your positions quickly, holding for 2-3 days max?
If so, then forex can throw a LOT of opportunities your way.
Here’s the honest truth:
Forex trading is NOT passive income; and
if you trade with a level head and solid risk management, it will not make you a millionaire overnight after depositing $1,000 in your account.
If the two concepts mentioned above make you think trading forex isn’t worth it, then you can close this article down, because forex trading is not for you.
However, if you understand the concepts above, understand that you will lose money from time to time, understand that you will profit over time.
Then keep reading.
Low Trading Costs Means Higher Profits
One of the great things about trading in a foreign currency is the low cost involved.
This is due to highly liquid assets, faster transactions, and ease of access to brokers through technology that has allowed spreads to plummet over the past 15 years.
When it comes to trading forex, the costs involved are very low.
You don’t need a huge amount of money to start trading.
However, you need to be able to lose money because you are betting against the market.
You need to remember that losses are just part of the game.
The more you trade, the more experience you will gain.
The better you get at it, the easier it becomes to make money.
To be honest, some of the major fees that people pay when they trade alongside the spread of entering a trade is through purchasing specialised trading packages like CQG or TradingView.
In the grand scheme of things, these costs pay for themselves.
Access To All, But Only Few Succeed
It’s true:
Anyone can learn how to trade forex.
However, there is a key difference between learning and executing the knowledge.
The reason why so few succeed isn’t luck, but understanding that they must risk money to make money.
This mindset is easier to obtain if you are risking money you can afford to lose.
(FYI – you should ONLY deposit funds you can afford to lose and NEVER put yourself in financial risk on defaulting loans in the hopes to make even more money from it).
Lots of traders begin with babypips, which is a great resource, but it only gets you to understand key terms used in the industry.
You need to learn HOW and WHY to trade certain patterns etc.
This is gained from experience and learning from some of the best forex trading books or online courses.
(We have an action-packed free forex course available, don’t waste your money on expenses courses that get you as far as babypips).
Once you know how and why you can then begin to execute what you learned.
These two extra steps will allow you to read the markets like a book because you understand why particular moves happen at certain times in a trend.
When you understand why buying pressure is increasing, you’ll be confident in your trades.
Whereas if you just look at price action and trade it because it is a chart pattern, you are throwing away your trading edge.
Everything happens for a reason in the markets, not because there is a wedge pattern.
To learn the deeper aspects of the markets, and you’ll be successful in this field.
A Skill That Can Pay For Itself For Life
Learning to trade forex isn’t something that fades away over time.
The more you trade & profit, the better you get, the more consistent you become.
You can’t expect to be consistent by trading 10 times and profiting from 50% of those trades.
The market throws curve balls at you every day and experience will help you dodge them.
The key behind this is that once you have learned how to trade forex, practised, created a trading plan/strategy, and traded with real money – this skill becomes a self-optimising beast.
No matter what happens outside of the forex markets (or any market), you will be able to pull up a chart and analyse it for opportunities.
And you will be able to make money.
That’s why learning how to trade forex isn’t something that fades away over time.
It’s something that continues to grow as your skills, strategies, and knowledge improve.
Trades Are Always In Abundance Of Opportunities
Because of how you can trade, there are hundreds of potential trading opportunities each day.
And once you know how to trade methodically with battle-proven trading strategies, you’ll be able to generate trading opportunities each day.
Like a conveyer belt delivering the next product.
This is achieved by either trading different currency pairs or by lowering (or increasing) the timeframe of your current asset.
This allows you to trade within a different parameter which could find more trades based on technical analysis.
With that being said, it is important to note that if you decrease your timeframe to a shorter one, then you must lower your risk-reward expectations too due to the average trading range in a lower timeframe being much smaller than a higher time frame.
(This should be self-explanatory).
However, you should not be trading for trading sake, some days you will not trade once.
It could also take a couple of days before you place another trade, it depends on your strategy.
But never force a trade.
Wrapping It Up: Is Forex Really Worth It In 2023?
If you are looking for a way to earn passive income, then forex is not the answer.
If you are looking to learn a skill to potentially grow your capital and beat inflation? Then the answer to the question: Is forex really worth it in 2023 is yes.
But it’s not easy.
It’s time to ask yourself:
What are my risks?
Can I handle the risk?
Can I dedicate myself to learning the skill and practise until I become fluent in analysing and executing trading ideas?
If you are comfortable with the above, then there is no better time to start than now.
If you enjoyed this article, then you should check out one of our recommended articles below to learn more about forex trading.