Pros and cons of forex trading.

Like any activity, forex trading has its pros and cons, and a full understanding of them can only be gained through personal experience. For those who haven't, I'll share my impressions as a trader familiar with the currency market for over five years.

First, it's important to distinguish between those traders for whom forex trading is merely a hobby and those who make a living from it. I fall into the latter category.

The profits I receive are my main source of income, so my opinion is based on that fact.

The benefits of trading.

As always, let's start with the advantages you'll encounter when trading Forex:

1. The salary – you can earn as much as a manager in a reputable company without much risk, and you don't need a degree or connections. As for me, I could only dream of such a salary in my small town.

2. The location – another huge advantage of Forex trading is the lack of a commute every morning, especially in bad weather when you watch people rushing to their desks from the comfort of your own home.

Furthermore, you can easily go on vacation and work there, since internet is ubiquitous these days, while your wife and kids are sunbathing on the beach. And if you want, you can extend your vacation indefinitely.
3. The working hours – or rather, a flexible schedule – mean you no longer need to ask for time off to do other things during work hours. You can easily pay your rent, go to the dentist, or do a host of other things that are only available during work hours.

4. No bosses or colleagues – no one gives you stupid assignments or lectures; you're your own boss. Plus, there are no colleagues on whom the success of your work depends.

The main disadvantages of Forex.

Surprisingly, most of the above-mentioned positive aspects also have their downsides.

1. Risk – you can always lose your Forex deposit held with a broker, and this can happen for so many reasons that it would take an entire article, " Forex Risks ," to list them all.

2. Lack of rest – you'd think you'd have plenty of time, but relaxing is practically impossible; your mind is constantly busy analyzing past trades and planning future ones. There's no such thing as a vacation or weekend.

3. Working hours – a flexible schedule has its drawbacks; for example, I have better luck during the Asian trading session. So, I have to wake up every day at 4:00 a.m., and after several years of this routine, I've become quite fed up.

4. Psychological factor – it's hard to explain to others and family what you're really doing; most people perceive Forex as just another scam. The only defense is purchases made with hard-earned money.

The pros and cons of Forex vary for every trader, but the main conclusion is the same: trading on the exchange isn't all about advantages. It also has a host of disadvantages that can become an insurmountable obstacle to success for most beginners.