Let’s face it, the Covid-19 pandemic changed the dynamics of work with many people appreciating the value of working from home. Things weren’t different in South Africa as many people turned to remote jobs to sustain their livelihoods. Currency trading is one of the options that South Africans exploited to make a living.
So, is it a viable option that is worth quitting your day job to work from home? Can you rely solely on forex trading to sustain your income? These are some top questions that need answers before committing to full-time trading. With full knowledge of the benefits and drawbacks, one can make an informed decision.
Benefits of forex trading from home
- Lower entry cost
Seeking financial independence requires money. Most businesses have high entry costs that bar many people from starting and succeeding. This is why South Africans embraced the currency markets, which have a relatively low entry cost. A disciplined person can invest with as low as $100.
- Free training
There is a lot of information about the currency markets out there for anyone aspiring to become a full-time trader. A good broker will be committed to helping its clients succeed in the financial markets. Typically, you can get free courses and guidance before or after you have opened an account.
- Available 24 hours a day
The currency market is open for trading every hour from Monday to Friday. If you are free, you can maximize your potential by increasing your trading hours. You need to be cautious to avoid trade fatigue, however. This could cause wrong decisions, so make sure you rest well and regularly.
What are the drawbacks of currency trading?
Just before you decide to quit your job, consider the following possible drawbacks:
- Risky and volatile
Currency is a risky and volatile market that is not for amateurs. You need an in-depth knowledge and analysis of the financial markets before you can become a successful trader. You should start by learning the financial market before you make this your work-from-home option.
- Minimal regulation
The forex market is not as regulated as a centralized exchange. Your trading platform can go down and you end up losing your investment. To avoid this risk, choosing a regulated broker is an important factor that any South African starting currency trading should put as the key consideration.
How to succeed if forex is your only option
If you only have forex as your source of income, you stand a chance of succeeding only if you are a careful trader. Always be keen on the basics which include:
- Dealing with licensed brokers only
- Starting with a demo account to understand the dynamics of the forex market
- Avoiding trading mistakes such as being emotional or making rushed decisions
- Using risk management best practices and tools such as stop loss
- Learning about the latest strategies and experimenting with them robustly
If you keep in mind these basic tips, currency trading can be a viable work-from-home option in South Africa.