Today more and more people take up trading on the financial market due to its availability and small investment requirements. Indeed, with the help of Forex one can get sufficient additional income. And it doesn`t matter how old you are and what is your background. Even if you are 60 but you watch the news and understand what`s going on in the financial world Forex may become your faithful friend bringing you good returns which is so helpful during the retirement. So if you are still in two minds whether to get started or not, we will give you 5 reasons why retirement trading is just for you.
Trading is not just for young people
There is such a stereotype that trading is only a young man's game, just like everything that is connected to computers and the Internet. We are sure that it is absolute nonsense and we can assure that seniors may be even more successful in trading than the youngsters and this is why
You can devote as much of your time as needed. This is the first reason why you should consider trading if you are retired. Since it requires a lot of time, especially if you are a beginner and need to go through training first. bear in mind that Forex trading is something you can do at home and you can keep one eye on the screen even if you are busy with something else. So, it seems that concerning time, trading will work perfectly for you.
- Serious attitude
Being mature gives you another advantage – you take everything seriously, not like you did 20 years ago. This will be very helpful when you have to make a considered decision regarding this or that trade. With such an attitude you increase your chances to be a successful trader.
- Emotional maturity
Talking about emotions it`s ridiculously obvious that reaching a golden age you have learned how to control your emotions and stay cool when a situation requires. Of course, your physical health might not be in full swing but at the same time, your lifetime wisdom and intelligence are flawless. That is why you are unlikely to get furious or too greedy while trading since you realize what is at stake.
- Retirees may understand risk better
It`s not a secret that trading Forex entails risks, and if you take it seriously you are risking even more than others. Again, you are in winning position here since you have a whole lot of life experience under your belt and, unlike any youngster, you will not take any unnecessary risks.
- An additional source of income
This is the main reason to start trading because despite the size of your pension you would not reject some nice profits on top of it, right? With that, you will be able to start traveling, help you kids or do whatever you actually want.
How much can I expect to earn?
This is one of the most popular questions beginner traders ask. Of course, there is no direct answer to that, it depends on so many factors, here are the main ones:
Starting capital. The logic behind it is very simple – the more you deposit, the more you get. Because with the higher amount on the account you can open more trade, it will allow you to be more flexible. For example, if you start with 100 dollars, your returns will be about 5 dollars;
Risk tolerance. In trading, high potential returns come with a high degree of risk. It is unrealistic to expect high returns from low-risk investments. You need to decide what is your risk appetite and see what would you prefer – conservative style of trading with small profits OR huge (potentially) returns dressed with the risk to lose the entire deposit. You choose.
Trading approach. Remember that the strategy you have chosen plays one of the key roles in your trading success and determines what will be your results. Taking into account that there is a lot of strategies each with its risk level and capital needed, at the end of the day profit will vary.
The simple risk-controlled approach shows that with a 60% gain rate. Most traders shouldn't expect to get that much.
You don't need that much money to start trading; $500 to $1,000 is normally acceptable.
Forex Trading Strategies for Seniors
- Trend Trading
The trend is a fundamental notion of technical analysis theory. All tools of technical analysis serve one single purpose - to understand the trend in which the market is now. The definition of a trend in Forex is almost no different from the generally accepted definition of the term "trend" - is the direction in which the market is moving. It is no secret that the currency exchange market cannot follow a straight line. Its trajectory is a series of waves of fluctuations with the top and bottom, or, as traders often say, with highs and lows. Most people believe that the market can only go in two directions: either up or down, but there are three types of a trend, not two:
Traders can make three decisions: open a long position (BUY); open a short position (SELL); finally, not to enter the market and do nothing.
- Sideways trend
The best time to buy is when the market is moving up, and to sell when it is moving down. In case of a sideways trend, staying aside may be a reasonable solution.
- Intraday trading strategy
An intraday trading strategy will be perfect for a newcomer because the losses in this type of trading can be insignificant and the profit is quite tangible. The essence of the strategy is to open and close buy and sell orders within one day. Deposit for an intraday strategy has no strong pressure because of the large stops. You can place trades with small initial capital. But, if you decide to trade using an intraday strategy, it means that you need to keep an eye on the news release. Force majeure and some political news can affect changes in the trend.
Scalping is considered to be a strategy of small but safe profits. Here is how it works:
- You open any position and wait for the market to turn in your direction (for example, you open an order to sell the currency at a higher price than the current one);
- You meet the conditions you need, close the order quickly and make a profit.
The success of the scalping approach depends on several factors. Firstly, to get a substantial profit, you should open as many orders on different currency pairs as possible. Secondly, you should react to price changes immediately, otherwise, you risk closing the position on unfavorable conditions.
How to get started
Once you have considered all the advantages and advantages of trading and decided to give it a try you would need some basic knowledge before you open your first trade. We recommend you to visit our trading courses over here https://paxforex.com/forex-trading-course.
Apart from the courses, make sure you open a demo account and practice opening and closing positions there, before investing your real funds.
It will help you to get the general idea of the financial market and to avoid the most common destructive mistakes.
Forex trading can seem daunting at first, but it is undoubtedly one of the best and smartest choices for those who are seeking post-retirement security.
Don`t be afraid to try something new telling yourself “I`m too old for this ***”. Retirement is just the next stage in your life and just perfect to take up a new hobby. And, as always, we are here to help you.