Why You Should Learn And Trade Forex

Why You Should Learn And Trade Forex

There are lots of business endeavors that one can engage themselves in as an entrepreneur. It might be Services, Microfinance, Restaurant and Bakery, Retail and Online store, Medical and Health Care, Manufacturing, Bar and Nightclub, Wholesale and Distributor, Real Estate, or maybe Construction and Engineering. It could also be Nonprofit. It’s a fascinating look into the types of businesses most of us dream of starting, and how those dreams have changed over time. There’s so much one can do given exposure, training, and skill to help them learn the art of a particular business. Are you dreaming of starting a business and wondering what kind it should be? We can’t answer that, but we can tell you of one we know best and the advantages we think it has over the others. Its Spot Foreign Exchange trading, commonly known as Forex Trading.


Forex trading, is the concurrent buying of one currency while selling another. It’s based on the movements of a set of currencies that are sold in currency pairs, where one currency is the base and the other is the counter or quote currency. It also puts the currencies in terms of one currency’s supply compared to the other currency’s demand. The gains or loss on a trade are based on the relative movements of the currencies within each currency pair. We teach you of more of this with emphasis on the practical aspects of the forex markets in our mentorship program at Forex School Uganda


Benefits of Trading Spot FX


Trade A Wide Range Of Currency Pairs

Forex trading gives you the opportunity to trade a wide variety of currency pairs, speculating on global events and the relative strength of major and minor economies. This allows you to easily gain exposure to markets around the world. While most trading is done in the world’s major currencies, you also have access to emerging markets such as Mexican Peso (MXN) and Polish Zloty (PLN). Forex brokers avail you as many as 90 currency pairs including Major ones, Minors, Exotics and Emerging ones



High Liquidity

Forex is the most liquid market in the world trading 24 hours a day. Over $5 trillion is traded every single day. That’s about 200times as big as the stock market! This depth almost eliminates the risks of being stuck in a position caused by lack of interest in the market. It enables easy entry and exit of positions as traders can react immediately to currency fluctuations any time of the day, any trading day of the week. This means they can get in and quickly out of positions experiencing huge price slippages at will. The fact that it’s an around the clock market makes it almost impossible to experience big price gaps since there’re is no opening and closing of the market during the 5days unlike the futures and stock markets. This enables an array of trading styles to suit any trader be it long term trading, swing, day trading, scalping, all trading styles are made possible.



Forex traders can trade more with less, thanks to leverage. Leverage enables traders to trade using borrowed funds from a broker. This enables them to trade larger position sizes than their own capital could afford increasing. Resultantly, returns are magnified from favorable price movements. To put it in perspective, with an investment of $1,000 would permit you can trade up to $100,000 worth of any particular currency. Forex trading allows you take advantage of leverage to trade large positions with a tiny fraction of your capital a rarity in business. This increases your gains but also your loss potential, and thus the need to understand margin trading. You can learn in this mentorship program at the Forex School


Open Market 24 Hour 5 Days A Week

Since forex is traded all over the world with different major economies opening at different times of the day, the forex markets are open 24 hours a day, 5 days a week. This makes forex trading convenient since you can trade ay time of the day. This fact alone is an attraction to market participants. Unlike other markets, forex trading doesn’t have to stop when night falls. Different markets or trading sessions open at intervals with some overlapping the others enabling continuity across the spectrum of the 24hour day. This is because the currencies traded in all sessions are the same, and the market players are the same too.


Low Capital Requirement

You don’t need a lots of cash to start trading forex. All you need is skill and discipline. This is a sharp contrast when it comes to conventional business. In forex trading, you can open an account with a very small amount of equity. In fact, in some cases some brokers allow you to open account without any money and give you bonus on account opening to trade with. With as little as $50 with high leverage you can open a forex account and start trading. You can trade forex with a very small account size — unlike much larger minimum account sizes for other instrument types.  With leverage, you can control huge amounts with a small trading capital. You can the trade very small positions in the same way you would trade larger positions.  This allows you to earn small with minimal risk and then scale up trading the exact same way. In this business, the most important aspect skill and discipline. Once you’re able to trade a small account and grow it over time with very good track record of profitability, it’s easy to get investors to fund you. Simply record your trades and track your progress.

Besides, trading a small account with real money gives you a better learning experience than demo trading. This gives you an opportunity to learn while you earn. Today forex brokers allow you to choose between extremely small, small, mid-sized and large Forex lot sizes. These can be nano, micro, mini or standard lot sizes. You can control a small account just as much as you would a big one.


Trading Opportunities In Bull And Bear Markets

The forex market offers traders the unique advantage of trading opportunities in both rising and falling markets. Whether the price of a particular currency pair is crashing or skyrocketing, it’s an opportunity to cash in to the skilled trader. While you can go short on other markets by using derivative products, such as CFDs, short selling is an inherent part of trading forex. This is because you are always selling one currency (the quote currency) to buy another (the base currency).


The price of a forex pair is how much one unit of the base currency is worth in the quote currency. And unlike other markets, there are no restrictions or additional costs for short selling. So as seen there is no ‘bear’ market, per se. Currencies are traded in pairs, for example US dollar vs. Aussie or the Euro vs. the Great British pound. Every position involves the selling of one currency and the buying of another. If while speculating one believes the Euro will rise against the dollar, one can sell Dollars and buy Euros. Or if one thinks otherwise the can buy Dollars and sell the Euros. The potential for profit exists as long as there is movement in the exchange rate or price. One currency in the pair is always gaining, and provided your trade is good, there’s enormous potential to profit.


Forex Volatility

The high volume of currency trades each day translates to billions of dollars every minute, which makes the price movements of some currencies extremely volatile. You can potentially reap large profits by speculating on price movements in either direction. However, volatility is a double-edged sword – the market can quickly turn against you, so it’s important to limit your exposure with risk-management tools. You can learn more about this in the mentorship program at our forex school


Availability Of Vital Market Information

Its common in other markets to have one person’s individual decision disrupt an entire market or stock. Unfortunately, this decision may be crash a particular stock yet the investors may be unaware of it since it might still be private. By the time its known to the public, a stock has already crashed and investors are counting their losses. For example, a stock can all of a sudden fall by 10% and as a trader you had completely no idea and couldn’t in 1000years contemplated it happening. But there it is but you have no idea what might have caused the sudden spike. Many times, it’s not until the following day when it’s in the news that you find out that earnings forecasts had been exaggerated; or that an influential person at a particular company has called it quits; or that some other influential piece of information was released that you were not privy to. Had you known this before, you could have saved lots of many and probably benefited for the crash. But you missed it because you’re not an insider. What if there was a market were all market moving information was made public not to a privileged few insiders but the entire world and every one learned of it at the same time. What if high-impact market-disrupting news was made public as and when it’s out with non or close to no insider knowledge. Allow me introduce you to that kind of market… ladies and gentlemen, welcome to the forex trading market.


Its Super Convenient

Unlike other businesses that require one’s presence and supervision, forex trading is a very flexible asset class to fit anyone. It avails a level playing field for a wide variety of market participants. whether you’re are new to trading or carry a wealth of experience, whether you hold a small or large account, whether you’re a full-time or part-time traders, whether you have a fulltime job or are unemployed, forex trading can fit your present circumstance. It gives you the flexibility to choose what fits you best: your time of the day, your preferred holding period, your trading style, your account size and your leverage.


The biggest question is whether you can trade while keeping a fulltime job. Yes you can, and very conveniently so. You don’t have to quit your job to trade forex. Yes, you can trade forex successfully while simultaneously handling a fulltime job successfully. This is possible depending on the trading style. A solid trading plan and good Swing and Position trading strategies will enable you do this without any hustle. End-of-day trading strategies only need you to check you position once every 24 hours. This means you can do any kind of job, hold any responsibility and the demands of work and still trade forex with just 30minutes a day to analyze the market, open positions and manage your trades. We teach you all these in our mentorship program at the forex school. We completely understand the need for multiple income streams so we’ve designed strategies to suit you as a fulltime employee in your job while successfully trading forex as a professional.


Low Cost And Efficient Order Management

Despite FX being unregulated, the market is very well coordinated through the Global Forex Exchange interbank structure. The 15 biggest banks form a “transaction ring” that runs on a common platform. Similar to regulated exchanges, orders are processed efficiently by matching the best ask and bid prices. For incoming orders, this guarantees that the tightest bid/ask spread is chosen at that time — minimizing your transaction costs. Price data vendors and brokers provide price data for free. No exchange commissions, broker fees or other fees apply so usually, the bid/ask spread is the only transaction cost you have to pay for a round-trip.


Besides, unlike other business that have huge overhead costs such as rent, licenses, and taxes, forex trading has none of that. Apart from the risk of loss (which is common to all business) and spreads on each trade, the only expense you associated with forex trading might be as much as data for an internet connection the fact that it’s an online spot trading business.


Its Recession Proof

Can the Forex Market Crash? The simple answer is ‘NO’. As one planning to start a long-term trading in forex you can rest assured that forex is never going to crash. The structure of forex is built in pairs with the currencies of the world. And in the case of one nation’s economy crashing, the traders can find the right currencies to pair with the crashing economy’s currency and profit from its crash. Unlike the stock market that has suddenlies, the forex market is composed of so many economies which open at varying times. If one economy was crashing and you had bought their particular currency in the pair, you can jump out of it quickly given the 24hour open nature of the forex markets, trade against it and gain hugely from the crash.


It would take all economies of the entire world opening at the same time where 8:30 am falls at the same time in every country (an impossibility given the time zone differential), all world economies’ GDP becoming equal and their currencies becoming the same value and then crashing at the same time with the same amount of loss (virtually impossible). It would also take all traders including individuals and all banking institutions stopping to trade in the forex market for it to crash. This too is virtually impossible. Forex is controlled and dominated majorly by central banks unlike the stock market which is influenced by private and corporate investors.


A number of businesses suffer through periods of crisis. As of recent as 2020 during the covid19 virus pandemic, so many businesses went under and some closed shop permanently due to the lock down imposed on both businesses and individuals. Millions lost their jobs as entire economic sectors crashed, similar to the 2008/2009 global financial crisis. However, these periods of crisis provided some of the greatest trading opportunities in the forex markets.


Trading Forex is one of the few things in the entire world that allows anyone to make money without dealing with customers, products, services, shipping or owning a building. With forex, all that’s needed is a computer or tab or phone, an internet connection, very little capital, and the skill to trade. To do this, you need an understanding of the macroeconomic factors in relation to the currencies being traded, proper technical analysis of raw price data charts, a solid trading strategy and disciplined adherence to a trading plan.


In forex trading, crisis always implies opportunity. If you ever need help in learning all this and taking advantage of such times, you could consider joining the mentorship program at Forex School Uganda. As other markets become turbulent and too volatile to trade for many trading styles and systems, forex offers another opportunity to make money. As businesses are CRASHING out, forex traders are CASHING in.



The Life Style

If you are one that takes life seriously and desires to spend it doing the things you like and with the people you love, trading forex is for you. It affords you the time and lifestyle to be able to do this. Once you have a solid trading strategy and plan, you can trade forex from anywhere in this world unlike any other occupation. You can do it any time you choose, giving you the power to determine or choose when and from where to work; you can do it from the comfort of your room, and you can trade it on your mobile which enables you do it from anywhere doing what you love.


Godfrey Kakulu

Your Forex Trading Coach and Mentor

Professional Training and Education in Forex, Cryptocurrencies, Indexes, Commodities and Precious metals

Godfrey Kakulu

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