Trade or invest in forex
As soon as a decent amount of free money has appeared in your pocket or account, the question of investment immediately comes up. At the moment, there are quite a few options for placing equity, but still, financial markets are the most attractive option.
And a novice investor is offered a choice to trade or invest in the trade of professionals.
Everyone in this matter is determined independently, depending on the availability of free time, ambitions, and desires.
Independent trade is a huge work, constant study, and nerves. The result is a lot of money and maybe some fame in financial circles.
Based on my own experience, I can highlight the two most attractive variants of trading – scalping and long-term trading. In the first case, having a small amount you can take a chance and try to earn quickly and a lot. In the second you need to have a fairly solid capital and do not use leverage.
And, it would seem that scalping is a simpler kind of trading, but next to large earnings (up to several hundred percents per session) there is simply a huge probability of sinks and drawdowns.
In contrast, long-term trading involves a minimum number of transactions, which should be opened at the most convenient moments. For example, there was a probability of default of the dollar, which means that this monetary unit will strengthen in the near future in relation to most of the world’s currencies, open a deal for sale on the euro/dollar currency pair and wait for new news.
But, this is only the simplest example of independent trading, in practice, everything is much more complicated.
If you do not have any desire or time for independent trade, we pass to passive investments.
And, their profitability, sometimes can exceed the profit from long-term trade on forex, even taking into account the commission of the manager.