Finance Your Dream Holidays With Forex Trading

Thanks to forex trading, dream trips can now become reality. Relaxing on white sandy beaches and marveling at breathtaking landscapes – traveling to distant destinations is an absolute lifelong dream for many. In order to really get to know the culture of a country and experience what everyday life is like in another place, this usually requires a length of stay that goes beyond that of a normal vacation trip. But how can such a dream trip be financed when your own income is just enough for the bare essentials?

Forex trading offers an attractive opportunity to earn additional income, as financial expert Frédéric Ebner knows from his own experience. He himself discovered forex trading around ten years ago after a difficult financial start-up phase and has developed into a real trading professional. He now feels at home in several places around the world and also enjoys the advantages that forex trading brings for globetrotters.

What is Forex-Trading?

Forex is the short form for foreign exchange. FX trading refers to foreign exchange trading in which the parties involved (mainly major banks, but also companies and private traders) exchange currencies for other currencies. The forex market is the largest financial market in the world with a volume 20 times that of the stock market.

How does forex trading work?

Trading does not take place via the usual stock exchange (or a bank custody account), but via a non-public OTC market operated by a network of banks. Access to the foreign exchange market is via a certified broker. This broker provides a trading platform via which various currency contracts can be concluded.

The main aim is to buy currencies and sell them at a later date at a favorable exchange rate. Currency pairs are always traded – one currency that is bought or sold and a second currency with which the transaction is settled. The trader forecasts how individual currencies will develop in value in relation to each other and positions his transactions accordingly.

The world as a trading place

Whether relaxing in a deck chair on a secluded beach or in a state-of-the-art office in the big city – as forex trading takes place online, it can be carried out from almost anywhere in the world. The only requirement is Internet access, an access device such as a PC, laptop or smartphone and a broker through which the transactions are processed.

New traders can acquire the necessary basic knowledge in online courses. It is possible to start trading with just a few hundred euros, which also opens up trading to small investors. Due to the large volume of business and the ability to trade around the clock, the forex market is very liquid and there is always a business partner with whom the desired contract can be concluded.

The willingness to familiarize oneself with the subject matter, to keep an eye on current world events and to actively manage one’s own portfolio does not necessarily have to be present: With the right system, it is possible to profit almost independently of turbulent market events. But especially at the beginning, sufficient time should be invested in acquiring the necessary basic knowledge, as the foreign exchange market is volatile and therefore involves a certain amount of risk.

Requirements for successful forex trading

According to expert Frédéric Ebner, the following principles protect against initial failures:

Gain experience

Sound knowledge of how the FX market works and a certain feel for opportunities and risks are essential. This can be helped by (beginner) courses in FX trading and a demo account. This allows you to gain your first trading experience, conclude transactions and try out various strategies without using real money.

Choosing the right brokers

Access to the forex market is via a broker that provides the necessary tools, charts, analyses and currency pairs on its trading platform. The better and more user-friendly the broker’s offering, the more successful and convenient your own trading will be.

Implement an investment strategy consistently

It is advisable to stick to an investment strategy once it has been chosen and to think through a change carefully. If you switch from one investment strategy to another in the event of setbacks, you run the risk of taking negative market developments with you.

Risk management and loss limitation

In forex trading, there will always be transactions that result in losses. In order to keep losses within manageable limits, clear limits should be set for capital investment and adhered to. Investing in many different currency pairs ensures a more balanced risk/reward potential, stop-loss orders limit the risk of individual trades and are particularly important if you cannot keep a constant eye on market developments.

Around the world with Forex

With a certain affinity for risk, a small starting capital and a little training, it is possible to earn an attractive income with forex trading. With skillful trading and a well thought-out investment strategy, the lifelong dream of a longer stay in faraway places around the world is within reach.