Is it worth trading forex to help fund travels?
Posted in: Advice
While the notion of travelling across international borders may seem fanciful in the wake of the Covid-19 pandemic, it’s fair to say that some countries are reopening for business and increasingly likely to welcome overseas visitors.
For those of you who want to commit to an extended period of travel, however, it’s increasingly important to seek out viable ways of earning money during your trip.
In this post, we’ll look at whether trading forex is a viable way of earning money while travelling and what advantage this offers to individuals.
The Cons of Forex Trading
Let’s face facts; not many of you will have limitless budgets when travelling overseas. Of course, this will initially make the ideal of forex trading financially appealing, as you can commit relatively small amounts by trading on margin and opening sizeable market positions.
However, highly leveraged markets of this type can cause you to lose considerably more than your deposit, creating a scenario where your travel budget could be diminished considerably with one small error in judgement.
Similarly, the forex market is extremely volatile and changeable in nature, making it hard to track real-time trends and achieve profits in real-time.
So, although forex trading is essentially a vehicle for generating passive income, you may have to invest a considerable period of time analysing data and tracking price movements rather than simply enjoying your travels.
The Pros of Forex Trading – And Why it’s Particularly Convenient for Travellers
In general terms, there are numerous advantages to forex traders. Most notably, the margin-based nature of this market can deliver gains that are far in excess of your initial deposit, creating a large profit margin that can sustain you going forward.
Similarly, the market is relatively low cost, with most brokers charging only nominal commission fees that don’t consume too much of your profits.
Beyond this, forex trading is also particularly convenient for travellers, as it can be done through mobile devices using apps such as the MetaTrader 4. This tool provides genuine real-time access to what remains a truly global market, without compromising on the range of analytical tools and technical indicators on offer.
With the use of increasingly intuitive analytical tools and risk-management measures such as stop losses, it’s also easier than ever before to manage your trades remotely and optimise performance without having to spend all of your time navigating the market’s pitfalls.
On a final note, trading forex also connects you to real-time currency values and exchange rates on a daily basis. This can be handy when travelling through different countries and trying to exchange cash at the best possible rate!