06 Jun 6 Reasons to Grow Your Wealth by Trading in 2020
Everyone wants to be wealthy and have enough money to enjoy life and not have to worry about expenses. Wealth building to most people seems to be a difficult proposition. Those who earn regular income feel they may not be able to do it. The reality is that it is not difficult creating wealth. It just requires a systematic approach. One of the best ways of creating wealth is through the trading. Trading either in forex, stocks cryptocurrencies or binary options offers a great way of creating wealth, even for a small investor who just started out trading.
Why trade to grow your wealth?
When traders choose to trade to grow their wealth, they are looking for optimal trading conditions and the best chance of making a profit. There are many reasons why millions of traders across the world think that the trading instruments such as forex fits these criteria, but we at Marketpotentials.com are going to check out the Top 6 reasons you should start trading to grow your wealth today in the year 2020.
Trading provides the ability to go Long or Short | Grow your Wealth
Trading an instrument such as forex means that 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 quote currency is always the first currency in a currency pair, and the base currency the latter currency of a currency pair.
The price of a forex pair is how much one unit of the base currency is worth in the quote currency.
For example, in the forex pair GBP/EUR, GBP is the base currency and EUR is the quote currency. If GBP/EUR is trading at 1.13156, then one pound is worth 1.13156 euros. If you think that the pound is going to increase against the euro, you would buy the pair (going long). If you think that the pound will decrease in value against the euro, you would sell the pair (going short). Your profit or loss will depend on the extent to which you get your prediction right, meaning it is possible to profit whichever way the market moves, if you choose the correct currency pair to trade with.
Trading provides 24 hour trading markets availability
The foreign exchange market is open 24 hours a day, five days a week – forex can be traded from 9pm Sunday to 10pm Friday (GMT). These extensive hours are because forex transactions are completed between parties directly, over the counter (OTC), rather than through a central exchange. And because forex is a truly global market, you can always take advantage of different active session’s forex trading hours.
It is important to remember that the forex market’s opening hours will vary in March, April, October and November, due to daylight savings change in time.
High liquidity in forex provides an opportunity to Grow your Wealth
The FX (foreign exchange) market is the most liquid market in the world, meaning that there are a large number of buyers and sellers looking to make a trade at any given time. Each day, over $5 trillion dollars worth of of currency is traded by individuals, companies and banks – and the vast majority of this activity is intended to generate a profit. You too could participate in this easily from your home with a broker and an internet connection starting today!
The high liquidity in forex means that transactions can be completed quickly and easily, so the transaction costs – or spreads – are often very low. This creates opportunities for traders to speculate on price movements of just a few pips.
Forex volatility is an excellent opportunity to Grow your Wealth
The high volume of currency trades each day translates to billions of dollars every minute traded around the world, which makes the price movements of some currencies extremely volatile. Volatility is a good thing in trading, as it allows you to exploit this feature to make a profit. So regardless of the direction of the trade, as long as it changes (i.e. indicates volatility) you can make money and grow your wealth with it easily.
You can also potentially reap large profits by speculating on price movements in either direction. It is however important to limit your exposure with risk-management tools, all of which are provided for FREE with IQ Options trading account accessible below.
Leverage can make Growing your Wealth easier
Leverage can be a double edged sword in trading, and we all know that. However whilst most people talk about the downside of leverage, i.e. losing more than you invested in, not many talk about the upside. Which is you could make double, triple of even more of the money you invested. You can easily make trades that offer up to 300X the amount invested on a forex trade with a comprehensive trading account from IQ Options for example.
The profit or loss you make will reflect the full value of the position at the point it is closed, so trading on margin offers an opportunity to make large profits from a relatively small investment.
Trade a wide range of assets that helps to Grow your Wealth
Trading for example gives you the opportunity to trade a wide variety of assets and financial instruments such as forex, commodities, cryptocurrencies etc to make a profit. Due to the potential of instruments available, you could speculate on global events and the relative strength of major and minor economies using these various trading instruments on the IQ Option Platform.
Conclusion | Growing you Wealth by Trading
In an age of unemployment and inflation, letting your money rot in your bank account and lose value over time, is akin to taking your money and burning it! You’d be hard pressed to find any bank in the world that offers an interest rate on your savings that actually keeps up to reality. In fact a number of banks in the world now even offer negative interest rates if you keep a deposit exceeding a certain amount – can you believe paying a bank to give them your money?
In view of all this, trading provides an excellent opportunity to grow your wealth quickly and ensure you stay well ahead of inflationary creeps. It is also a skill you can learn with practice and time which you can use for the rest of your life in growing your wealth successfully. So simply sign up for a FREE Demo Trading Account below and check out the various tools and instruments you could start trading with today with IQ Options.