How much money should I invest and where should I invest it?
These are two of the most famous and most asked financial questions by individuals from all walks of life. Perhaps, you have already asked yourself the same. But why do we need to invest when we can just save? Well, investing is risky but if successful, it overpowers saving because your money is growing instead of just being kept in one place. The pandemic made us realize how important financial security is in times of crisis and we are now looking for ways on how to handle our finances better and wiser. What other best way to do that than investing?
So to answer the questions above, the amount of money you should invest is the amount you are willing to lose. If $10,000 is safe for you, then it is a decent amount which can already open a lot of options without the fear of having to lose so much. Now the tricky part is where to invest or what to invest in. In this blog, I will tell you where I was able to successfully grow my $10,000 and why you should do the same.
Yes, you read it right. I invested my money in the forex market and ventured into forex trading. But no, I did not start with exactly $10,000 immediately (and you probably should not as well). I started small (as low as $100) and as I continuously learned how the market works, I eventually had more courage to invest a bigger amount of money to gain bigger returns.
So, how does it work? Let's start with the fact that forex literally means foreign exchange. This means that once you trade forex, you are basically dealing with foreign currencies and their consistently changing values. Here, you are trading currency pairs where you sell one currency (base currency) and purchasing another (quote currency) with every trade. The goal is for the value of the quote currency to increase in the market so that your base currency will have a bigger exchange value once it gets returned to you. The money you invest will grow depending on the condition of the forex market and how well you manage your trades.
There are a lot of reasons why investing in forex is better compared to other investment options. Compared to the stock market, the forex market is more accessible, beginner-friendly, and has higher market liquidity. It is open 24 hours, 5 (some 6) days a week, and buying and selling currencies is fast and easy with the right choice of broker. Entering the market is made easier by the multitude of tools and resources that are perfect for beginners and professionals alike. Yes, you still need to take time learning about how the market works but it is definitely not complicated at all.
Just like any other investment, forex trading also comes with a number of risk factors. You can either win or lose. But how much you will earn or lose will depend on how well you play the game and how it is going in the forex market.
In my case, I started with $100 and was able to earn 2% of my investment in the first week. After a series of victories and losses, my money gradually grew. I continued to learn as much as I can and when I finally reached my prior goal, I had more courage to invest a bigger amount of money. Recently, I tried to trade for a week with a $10,000 dollar investment and I was able to earn a decent amount of profit after trading for almost 5 days only. I wonder how much more I can earn if I am a full-time trader and will trade with the same amount of investment for a longer period of time.
What happened to me may not work for you and what worked for others may not work with you and me but one thing is for sure - anyone can earn through forex trading if they invest not only their money but their time, effort, and dedication. Besides, it takes passion more than the money to stay in the trading business.
Let us be honest here. Everyone can venture into forex trading but forex trading is not for everyone. What does this mean? Well, the market is accessible and you can enter anytime anywhere as long as you have the resources but the question is how long will you last. One can win continuously from the first try but will they stop once they have their first loss? Or one can continuously lose from the beginning but will they stop and lose hope before they finally have their first ever victory?
You see, the answer on whether you should or should not invest in forex lies on the answer to the question: Is forex trading really for me? Everyone who wants to venture into trading should ask themselves this question first. You can start by considering your investment goals. How much do you want to earn? How much can you lose? How long do you see yourself investing? What options suit your lifestyle and schedule? These are some questions you can ask yourself before deciding. Next, do your research about the investment option you have in mind. Know how it works, what to expect, and the risks it comes along with. Besides, $10,000 is already a "huge" amount of money and no one wants to blow it up in one click right?
Bottomline: Be an educated investor. No matter how big or small your investment and how promising or not the options have, if you don't take time to think before you decide, there's a big chance you will just blow up your investment. I trust you and your abilities so if you finally decide (or need help in deciding) that forex trading is for you and you are ready to grow your $10,000 feel free to hit me up and I'll be glad to help you. Share your investment tips, stories and questions in the comments.