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Why Trading Forex is Ideal for Millennials

Millennials have the time on their side to increase their wealth. By entering into the trading world early, they have greater time to accumulate wealth and learn from their experiences to build their resources.

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Although millennials are known for being free-spirited and outspoken, they are not as brave when it comes to investing. A Harris poll published by BusinessWire cited the top reasons why people aged 25-41 today are not investing. The poll revealed that 40% said they feel like they don’t have enough money, 34% said they don’t know how to invest, while 13% blamed outstanding debts from student loans and credit cards.

Another reason why millennials find it difficult to invest is the variety of investment opportunities that require specific risk capabilities, strategic planning, and technical knowledge. There are two well-known investment options: stocks and forex. While investing in the stock market is the most common way for this age group to start investing, it can hit a plateau, resulting in low returns and shrinking volumes. Meanwhile, TeraMusu states foreign exchange offers fast-moving global markets to potential investors, which they explained as “a lucrative method for hedging losses or for bolder movers to gain market leverage.” In addition, this age group has particular traits that make them ideal forex traders. Curious about what characteristics we’re talking about? Read on below to find out.

CONSERVATIVE INVESTORS

While millennials may have a positive mindset, the financial crisis made them skeptical of the capital markets. They have witnessed in their era how their net worth plunged in a short period of time. This made them risk-averse. However, risk is inherent when it comes to investing.

As a result, it has produced conservative investors, who are looking at safe investments with modest returns. They are taking this route to use little leverage to help them lower the risk of incurring major losses. By maximizing a conservative system, investors also increase the chances of staying longer in the trading field to get significant experience and harness their trading skills.

UNRELIABLE INCOME

Businesses are now moving towards hiring more freelancers rather than full-time employees and people are now more engaged in the ‘gig economy’. Both trends are being embraced by millennials. This means they are working towards an uncertain future with no pension to safeguard their retirement plans. CNBC published a report in 2016 stating that 40% of millennials have no retirement strategy in place, as they are more focused on short-term and high depreciating assets, such as smartphones, cars, and other tech gadgets.

Even with a stable income, investing in forex can be beneficial for their future as it works long-term, ideal for planning for retirement. While forex can also be traded for short-term, having it for the long-term allows it to grow further than any short-term investment opportunity.

LOVE FOR TECHNOLOGY

Millennial have a high affinity for technology. If you combine it with their desire for conservative trading, it can be a win-win situation for them to leverage on the market. Fortunately, there are plenty of available financial resources and tools that can help them in trading efficiently and effectively even through their mobile devices.

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With these platforms, they are able to obtain real-time access on the forex market quicker with charting tools that can help them further in assessing the global markets. It also makes it easier for them to enter trades on the go with just a tap on their screen.

Most importantly, millennials have the time on their side to increase their wealth. By entering into the trading world early, they have greater time to accumulate wealth and learn from their experiences to build their resources. They can adapt to trading systems and practice with various strategies that can help them make more effective trades. So, if you haven’t started trading yet, don’t waste your time and start investing in forex today.

This is a guest post.

Images:

Pixabay Photo Credit: “GBPEUR Flash Crash” (CC BY-ND 2.0) by Jim Makos

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1 Comment on Why Trading Forex is Ideal for Millennials

  1. Any recommended sites or platform to trade forex?

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