Forex Is A Popular Investment Type In The Community
Lately, forex investment has become a type of investment that is in great demand by the public. Forex is an abbreviation of Foreign Exchange, which means buying and selling foreign currencies originating from various countries in the world. The purpose of buying and selling transactions is to get a lot of profit. Currently, many traders are present in all countries in the world. Therefore, don’t be surprised if there are so many people who study forex trading for the sake of making a profit.
But besides being able to be used for trading, it turns out that forex is one of the investment instruments that can provide big profits. Many investors are competing in investing their wealth in forex.
But, why forex can be a profitable investment asset? Curious? Find the answer by reading the article about forex below.
What are the Advantages of Running Forex?
We must all admit that forex is one of the investment instruments that can provide greater profits than other instruments. A famous trader named Dr. Corvin Coldira chose forex instruments as his investment assets because the trend conditions tend to move slower.
On the Seputar Forex page, he explains that the factors that influence forex changes are various economic news which is generally unable to provide big changes. So, you can be sure that in general there will not be much change in the forex trend, so it can be used as a long-term investment asset. In addition, there are several reasons why forex is one of the investment instruments that can provide great benefits compared to other instruments, namely:
1. High Return Of Investment (ROI)
If we compare it with other investment instruments, forex has the highest percentage of ROI. ROI or Return on investment is the return on investment that is calculated by dividing the income generated by the value of the invested capital. So, the thing you have to pay attention to when trading forex is consistency and strategy in making a profit.
2. Small Capital
You don’t need to worry if you don’t have large capital to invest in forex. Generally, most people will assume that if you want to invest, you need a very large amount of capital. But this does not apply when you invest forex. Why? because you can start with a smaller capital first. Even today, several brokers make it easier for investors or traders to open an account with a capital of only $1 or around 14 thousand rupiah.
A trader broker is a company that has collaborated with major producers or banks to able to carry out foreign exchange (Foreign Exchange) trading activities for forex traders.
3. High Liquidity
Forex is one of the most liquid instruments in the world. When you make a purchase whenever you want, there will always be someone who wants to sell it to you and vice versa. This is because the scope of forex is an integrated world exchange.
Of course, this is inversely proportional to the stock market, where when you make a transaction, it can only take place on certain stock exchanges, such as the IDX or the Indonesia Stock Exchange. So, the stock investment that you make is very vulnerable to a failed transaction condition.
4. More Independent
It is undeniable that forex is an investment instrument that is suitable for everyone, including for individuals or individuals.
Why? Because by investing in forex, you can determine for yourself the nominal amount of money you want to invest and when is the right time to do buying and selling activities. Of course, this is different from other investments, such as deposits, mutual funds, and insurance. Generally, these three instruments can only be done through a third party.
Thus, we conclude together that forex will make us more independent without the need for a third party.
What is a Good Forex Strategy?
You need to underline that a forex strategy is a very important thing to help you make investments. So many professional forex traders have their strategies in forex trading. Corvin Coldira on the Seputar Forex page explains that there are four good forex strategies, namely:
1. Know the Basics of Forex Trading
You must first understand the true meaning of forex before actually diving into it. Forex is a business that trades foreign currency exchange rates to benefit from these activities.
Forex trading is carried out in a container known as the forex market. Forex operating hours are not limited to time, or it can be said that they will always be active for 24 full hours with various market sessions and operating hours In addition, you must also be able to do a professional forex market analysis to get a large profit value.
But before starting to invest or trade forex, try to understand the basics of forex, including the price driving factors, the risks of forex trading, and various other basic things. When you have mastered all of these things, then you will most likely be wiser in trading forex.
2. Understanding Forex Market Conditions
This of course you have to pay attention to when you have plunged into the world of forex. Without having a stock of knowledge related to forex market conditions, likely, your investment or trading in forex instruments will only result in losses.
Forex market participants generally include banks and financial institutions, governments, multinational corporations, broker traders, and retail forex traders. Later, you will most likely fall into the category of retail forex traders.
A retail forex trader is a trader without any group or corporate entity. You must be able to know your position as a retail forex trader correctly because this type of trader falls into the lowest category.
You should always be wary of speculators who are more professional in this trading world and you should also be smarter in choosing a broker trader. Then, you have to trade according to the trading session. Why? because the forex market opens with several sessions and also different levels of crowd.
3. Forex Performance Evaluation
If you have been trading for a few weeks or months, then one of the things you should pay close attention to is evaluating your forex performance.
Determine the quality of your trading so far so that later you can trade according to your abilities and capacities.
There are many ways to measure trading quality. You can see it from the win rate, which is the number of profits compared to losses. However, this method is sometimes less accurate.
One of the experts in creating profitable trading systems named David Jenyns explained that there are several parameters that you can use to determine the quality of your trading.
Well, some of these parameters are by looking at the percentage of win rate, average profit or average win, average loss or average loss, number of trades, expectancy, to the level of profit or profitability.
4. Trading Positions
The last strategy in investing forex is to use a positioning trading strategy. This forex strategy is very suitable to be used in forex investing. Why? Because this strategy is a long-term strategy that makes traders hold their positions for several months.
However, before using this strategy, you must do a deeper analysis to determine the factors that underlie the currency you will buy later.
Closing
Thus our explanation of forex is complete about the advantages and the right strategy in carrying out forex investments. So, Forex is an abbreviation of Foreign Exchange, which means buying and selling foreign currencies from various countries in the world. Some of the advantages of running forex are high return on investment (ROI), small capital, high liquidity, and being more independent.
To invest in forex, some of the strategies you can use are to know the basics of forex trading, understand forex market conditions, evaluate forex performance, and run position trading. If you have benefited from these investment activities, do not forget to record them in the financial statements. Financial reports are not only needed by investors but also for business people, regardless of the level of scale.
However, making financial reports manually certainly takes a long time, requires more resources, and is very prone to errors. For that, switch to using accounting and business software from Accurate Online.
Accurate Online will present more than 200 types of financial reports automatically, quickly, and accurately and you can access it wherever you need it.