Is Forex trading a business? The answer is more complicated than it may seem. It depends, in fact, on how it is practiced. Surely it is better to think about trading as a business, so to act as if it was. It is a matter of personal orientation but also of practical approach. Considering Forex trading as a business really helps to generate profits. Because…
Otherwise Forex Trading is likely to be a gamble. It’s a really big risk. Of course, the opposite of business is not necessarily a “game”, but something very close to it. If the game in question is “gambling”, the implications are easily understandable. Considering trading as if it was a bet, betting instead of investing, is the fastest way to lose money.
Because a great effort is required. It’s good to be wary of those who talk about easy Forex trading, which allows you to pull on large numbers without risking anything, simply by using this or that miracle recipe. In fact, in order to earn with Forex trading, you need commitment, study and resources, both financial and intellectual. Just like in any other business.
Because it is good to conceive it as a full-time job. Obviously, there are “Occasional Traders”, who devote to trading just a few hours a week. Generally, however, they do not run long distances. Unless there is a professional and effective use of robots behind, but this is another story. In all other cases, trading requires not only commitment but also a long time. To study, develop your own strategy, manage operations, evaluate results, and so on. Just like a business, or even a real profession, you have to spend time on the platforms.
Because it is, fundamentally, an investment… Only more speculative. Forex trading can be considered a form of investment, but it commits the capital by buying and selling goods (in this case currencies), a bit like you would do with a real estate. The only big difference lies in the speculative element, which of course in Forex is considerably dominant. You do not buy because you get a rent or use a good, but to sell and earn on the surplus. But it is undeniable, it is still a form of investment. So, a business.
Forex trading as a business. An equation that could make some turn the nose up, but which is very useful and does not lack elements of truth.