The forex trading business has risen in popularity in the past few years. Especially when the Covid-19 pandemic hit the whole world.
After those times, the prestige of forex trading fell again due to the disclosure of many cases of fraud in the name of trading. Either from binary options or trading robots.
Therefore, the world of trading is polluted again due to the actions of irresponsible individuals.
Even so, there are still many people in various forex trading communities on social media who are active in the forex trading business. They are still optimistic that they can become professional traders and get consistent income from trading results.
Then, what motivates many people to continue to pursue the forex trading business? And is the forex trading business worth taking seriously?
What is Forex Trading?
Forex trading is a foreign exchange trading business. The concept is the same as regular trading, where traders can benefit by buying at low prices and selling at high prices. The difference is, traders can carry out two types of buy and sell transactions. So that traders can make profits, both when the market is rising or when it is falling.
Advantages and Disadvantages of Forex Trading
As a business, forex trading has its own advantages and disadvantages. Here are the advantages and disadvantages of the forex trading business.
Advantages
1. Unlimited profits
2. Can be done anywhere
3. Relatively low capital required
4. Flexible in terms of time, because the market is open 24 hours for 5 days
Deficiency
1. The risk of loss is great
2. Hard to learn
3. Few traders are successful
Why Are So Many People Still Trading?
After knowing the advantages and disadvantages of the forex trading business, it may be hard to believe that there are still many people who are still trading. Even more so when you look at the fact that only a few successful traders.
Even though the profit of trading itself is not limited, it is also useless if only a handful of the many people who try to pursue this business succeed.
Then, what is the attraction of forex trading, so that there are still many people trying to become traders?
Basically there are many reasons why there are still many people who trade, even though they fail many times, and many times there are many criminal cases in the name of trading. These reasons may be different for everyone, because everyone has a different view of trading.
There are some people who think that the profession of a trader is cool because it deals with technical and fundamental analysis. Therefore, they are attracted to the forex trading business and stay in it, hoping that one day they will become professionals in this business.
Apart from that, there are also some people who think that the forex trading business is a place to make large amounts of profits. And usually, the people who persist and keep trading are those who have already benefited greatly from the forex trading business. Therefore they are addicted and remain optimistic that they will repeat that luck again.
On the other hand, there are also people who position the forex trading business as a side business to generate additional profits. Because forex trading has flexible hours, it is very suitable to be used as a source of additional income without disturbing one’s main job.
So, that is the reason and motivation why there are still many people who keep trading, even though the chances of becoming successful and becoming a professional trader are very low. There may be other reasons besides the reasons above. But, generally these three reasons are the reasons most people choose to stay in the forex trading business.
Indeed, those who succeed in forex trading are few, but actually there are quite a lot of those who can survive. Can survive here in the sense that they do not experience significant losses, and sometimes make profits in their trades. Those whose trading performance is not too bad or manage to maintain their trading capital from losses even though they don’t make a lot of profit tend to keep on trading.
Likewise those who are still experiencing losses, but in which there is progress. So even if they lose, the losses continue to decrease, they will continue to continue trading forex. The number of people like this is quite a lot. Traders who eventually retire from trading are mostly traders who have experienced MC many times, or have suffered severe losses.
The chances of success in trading are affected by one’s trading experience. Maybe this is the reason why many traders continue to survive, because they see an increase in experience and an increase in their trading skills. So even though they still experience losses, they continue trading because they are sure that as time goes by, experience increases, and trading skills increase, in the end they will succeed in achieving consistent profits.
