People from all across the globe consider trading as a high barrier-to-entry profession. They often ask questions like “why should I trade?” “why trading is important?” or “is trading really worth it?” Don’t be anxious and overthink. If you have enough ambition and patience, you can start trading and be successful. And yes, trading really worth a shot. What is better than being your own boss?
- If you have enough ambition and patience, you can start trading and be successful.
- Many reasons can push you to want to start trading.
- Follow down to find whether they are good reasons or roads to chaos.
Why should you start trading?
There are multiple reasons you should start trading now. But 11 of them are really life-changing that can make you turn toward the trading profession.
1. Start trading today to grow your money
This is the simplest, first, and foremost reason you should start trading today. Trading has the potential to grow 7 to 10 percent per year over the long run. Why start trading? Start trading to add to the money you already have. If you can keep on investing, you can turn a minimum amount into more than millions.
2. Start trading today to prevent your money from losing its value
Inflation is a big factor that causes your hard-earned money to lose its value over time. Why start trading now? Because you have to grow your money and prevent it from inflation. For example, if you have $10,000 now and when you put it in your locker, its value will depreciate gradually. On the contrary, if you invest that money in trading, you will see your money growing. Isn’t that enough to answer the frequently asked question, “why should I trade?” That is why trading is important beyond imagination.
3. Start because it promises high profitability
One of the best things about trading is it promises high profitability. Although you cannot achieve high profitability overnight. You have to be patient and disciplined to reach that level but the potential is there. Once you master a profitable trading strategy and understand how financial markets behave, profit potential rises. Is trading really worth it? Yes, it is and you will definitely pick ripe fruit one day.
4. Start because you don’t need huge sums of money to start
Trading doesn’t require huge investments. You can trade with little investment and can grow it gradually. There are a few financial markets where you need fractionally higher initial investment. But, there are some others like the forex market where you can start with a very small amount.
5. Start because trading can make more than any other business
When you look back at history’s most successful traders and investors, it becomes evident that trading has the potential to make more than any other business. Most successful traders of all time like Jesse Livermore, William Gann, George Soros, etc. made millions through trading. This was all possible because trading brings fortunes when you have the right strategies, skills, and attitudes.
6. Start because you can diversify
Trading not only makes more than any other business, it allows diversification. You can build and develop a diversified portfolio to spread the odds. With a diversified portfolio instead of a single business keep your risks under control. You have a lot of options in front of you to make money.
7. Start because you can risk as much as you want
Trading suits both types of personality traits in terms of risk-taking, risk-takers and risk-averse. You can risk as much as you want. If you are a bit risk-averse, you can trade less risky instruments like certificates of deposits. On the other hand, if you are a risk-taker and want huge returns, you can invest in other instruments that promise huge returns. Remember, high risks, high rewards. You can also manage your risks through risk management techniques like stop-losses.
8. Start because of high liquidity
All financial markets are liquid beyond your imagination. That means there will be uncountable buyers and sellers available in a fraction of a second. High liquidity enables traders to make profitable trades whenever the opportunity knocks at their door. Some financial markets like the forex market are even more liquid and there isn’t a risk of a monopoly of a few big players. High liquidity and vast financial markets make it impossible for big players to manipulate prices.
9. Start because win-win scenarios surround you
There are trends in financial markets that repeat themselves every now and then. Sometimes markets are at boom and prices go up. Some other time, markets face downtrends and prices begin to fall. Uptrend and downtrend often move in a cycle. But traders are always in a win-win situation. They can make profits from rising as well as falling prices. So, isn’t it enough to know why should you start trading?
10. Start because of time flexibility
Time flexibility is also the key reason why you should start now. Financial markets remain open 24/7. That means you don’t have to follow a hectic schedule and commute to work daily. You can trade whenever you want.
11. Start if you don’t want to follow orders
If you don’t like a job and let others dictate you, you should start trading. Be a boss to yourself and earn a handsome amount of money. Some people can’t work in an environment where others give orders and try to dictate. Such people are not followers and when they are made to follow, they explode. If you are such a person then trading is for you.