For decades, the media has put a spotlight on successful hedge fund managers. They interview them, talk about them, and often showcase their wealth. This has led to increased popularity of many managers like Bill Ackman, Steve Cohen, and Warren Buffet. It has also attracted more people to the world of online trading where they hope to make money and live the lavish lifestyles they see on TV.
Today, millions of people from around the world are trying their luck by trying to trade forex online. They believe that they too can make a fortune by trading financial assets like currencies, commodities, bonds, and stocks.
Trading has a number of benefits. First, it is a business that does not need a lot of start up capital. Unlike other businesses, you don’t need to invest a lot of money to start trading forex. You don’t need a government license, staff, and even an office. Most traders start small in their houses and grow. You can even start trading with as little as $250. The only thing you need is a computer and a fast internet connection.
Second, trading is a business you can do anywhere. Unlike other businesses that limit you to an office, you can trade even when you are travelling, provided that you have an internet connection. Most brokers provide the MT4 application which has mobile apps that you can access from anywhere.
Third, trading is an industry that you learn a new thing every day. Unlike other businesses, by being a trader, you will always be at a position to learn new things every day. For example, today, the markets could be moving up because of a major economic data yet tomorrow, they will fall because of another data. This makes trading an interesting thing to do if you want to learn a new thing each day.
Fourth, trading gives you an opportunity to make money doing what you love. In the past, if your interests were in finance and economics, your only path to success was to work at a large investment bank. Today, with online trading, you can achieve all this by just trading online. As you improve your trading skills, you can even attract money from friends and investors and run your own mini-hedge fund from your home.
In addition, trading gives you real skills especially if your goal is to work at a large investment bank. By perfecting yours skills that you can demonstrate to potential employers, you will increase the chances of getting a dream job at a large bank or hedge fund. It is unlikely that any serious hedge fund manager or investment bank will refuse to employ you after demonstrating excellent trading skills.
However, there are a number of cons of being a trader. First, trading requires a lot of learning to perfect it. Sadly, many people do not have the time to learn all the skills they require to be better traders. Second, while you can start trading with less than $500, it is recommended that you start with more money to increase your chances of being successful. Third, trading involves a lot of risks and if you are not able to manage them, there are chances that you can lose the money within a short period.