Despite the pandemic, the forex market is still running, and people are interested in investing more than ever. Where to begin?
While many who don’t know much about Forex assume it’s risky to get into the world of trading during the pandemic, others go in-depth with research about cryptos and stocks, mostly young adults. Why is that? Because the economy is uncertain. Sounds contradictory, but the market is volatile, and ups and downs are regular, so observing the market is the same as analyzing the world economy in real-time, but having a strategy where you can make a passive income from it. In the time of Covid-19, passive income has become the main subject of many, since we don’t know when somebody will be laid off. Even if you are sure about your job position, we don’t know what to expect when the recession hits. In any case, passive income can’t be a thing you don’t need. The market didn’t stop, although it had a setback. Forex had it’s fall when the pandemic hit, but it bounced back quickly and brought even better and unexpected results.
Below, we will give you basic guidance on how to start, who profited the most on the market this year and why. A trading strategy will also be mentioned as a must to gain profit on Forex over time.
Selecting a broker
Before you open a trading account, you will need to find a good broker. For this reason, it’s important to find out more about top Forex brokers and determine their trustworthiness. What do we mean by this? Someone who’s an expert in the field and has experience in Forex. That is why you must select a trusted forex broker because they will be the person to advise you and guide you towards becoming a successful trader. It isn’t hard to differentiate an expert from a scammer. It’s enough to google the name and see the reviews. They should also have their portfolio online on a certified website. If something is off and you can barely find any information, keep searching for another broker.
Why the market hasn’t stop
You need to know that Forex is a decentralized market that operates thanks to the internet, 24/7. It allows virtually anyone with an internet connection to get into trading and you don’t need thousands of dollars to open an account.
With this information out of the way, we’ve spent most of 2020 in our homes, shopping online, browsing the internet, hanging out with the internet via Zoom or other social apps. Naturally, as online shopping increased, Amazon stocks’ value, as an example, grew immensely, and Jeff Bezos became the richest man in the world. Zoom value grew more than 300%, and Bitcoin hit an all-time high this December. This is evident proof that the market can’t stop, but we determine whether we want to invest or not.
How much to invest?
This is another reason why having a broker you can trust is essential. No expert will tell you to invest in one asset, everything you have. If you are a complete beginner, it is necessary to know you don’t have to invest the whole amount you deposited into your trading account. You can play around with 5$ if you wish. It’s important to learn the basics, educate about trading strategies, and have a goal in mind. Trading is a process where you want to stay for a longer time to generate income slowly but surely. Of course, if a great opportunity arises, you can consult with your broker and see what would be the best choice. Demo accounts can be a great choice to play around until you learn to read charts and other technical things, but we advise not to stay in the “comfort zone” for too long, since it can affect your trading negatively once you start trading with real money.
As you can see, the market is still running, and people are eager to invest more than ever. Remember to take it slow, check regulators and be sure to have a goal and a strategy. You will learn everything else along the way.
Phoneia.com (December 22, 2020). Is forex trade still profitable during crisis and how to approach it. Recovered from https://phoneia.com/en/is-forex-trade-still-profitable-during-crisis-and-how-to-approach-it/