FOREX (foreign exchange) trading has been on a rising trend ever since the COVID-19 pandemic hit and the government started enforcing the nationwide lockdowns, bringing in a huge influx of new forex traders in the scene.
According to ForexBriefcase founder Jin Dao Tai, more people have turned to online trading to gain some additional income during the lockdown period in their spare time and the trend is likely to continue.
“People who turned to online trading for some extra income will probably continue to trade, creating a ripple effect to influence more people towards this industry,” he said in an exclusive email interview with FocusM. As it is easily accessible, forex trading is easy to pick up and current global conditions are making the forex trading market move faster, giving anyone looking to trade more opportunities to begin.
“(For these reasons), it makes forex trading more popular compared to other assets of trading,” Jin added.
Jin believes that although every investment can be considered risky or volatile, the current climate is actually a good time to start trading as the pandemic has affected markets across the globe.
For example, this caused stock prices to hit multi-year lows during the February-March period, before recovering almost entirely in the following months.
“Forex traders are able to experience many different market conditions in a relatively short span of time. So even if forex trading can be volatile, I believe that having the necessary education is an even more important factor,” Jin continued.
Additionally, he cautioned for the traders to have enough knowledge to ensure that they can brave through even the harshest of storms in the market.
While new forex traders may lack the necessary knowledge for trading, Jin advises to start trading with caution in the beginning, giving time and opportunity for the new traders to be familiar with the market before attempting larger trading opportunities.
“To become a successful trader regardless of experiences, you must be able to wait for good trades, aim for small-but-consistent wins and be okay with losing trades from time to time. Be focused on the mindset of accumulating wins rather than expect a windfall, given the volatility in the forex market,” Jin said.
He suggests for beginner traders looking to start by considering their risk profile to manage their aggressiveness or tolerance and the amount of capital and time they are able to commit, as it will filter into selecting a strategy for the trader that will suit their style and preference as they learn the ins and outs of the forex trading craft.
It is important to have realistic and repeatable goals, enabling the trading activities to become more sustainable.
He believes that moving forward, Jin predicts that more people will take up forex trading as an alternative method of gaining additional income during the struggle period caused by the COVID-19 pandemic and the trend is likely to continue post-COVID-19.
“The forex market is an integral part of today’s economic system and it will continue to flourish. What the COVID-19 pandemic has done so far is brought in a huge influx of new traders and trading volumes and this trend will likely continue into the new normal,” he ended. – Oct 24, 2020