Anyone who uses social media would be aware of the fact that almost all financial influencers are talking about trading these days. Whether it is about cryptocurrencies, foreign exchange, commodities, flipping houses or even trading baseball cards, everyone is motivating you to try your hand at trading and start living your best life.
But with all this promotion, you must get skeptical about how authentic this really is. There is no denying when something is hyped this much, there is a lot of room for scamming in that area. But sometimes, it also damages the actual benefit that it can actually offer. So here, let us forget about the hype surrounding trading and get our basics cleared up. After you have better and unbiased input on this topic, you can make up your own mind about whether trading is the future or is it just a ruse?
What Is Trading?
If we talk about the history of what trading is then that is basically the foundation of any financial system. Even if you are employed, you are essentially trading your time and expertise for a salary. Once you have that salary or money, you are trading that money to buy groceries or pay rent and buy the things that you cannot produce on your own, which is almost everything.
But the kind of trading we are talking about here is the kind that happens without physically trading anything for another but rather on digital platforms. So, when you make a trade, you do not need an actual storage facility or warehouse because everything happens on a digital platform and we have the miracle that is the internet to thank for this.
What Are Examples of Trading Markets?
If we attempt to list down all possible markets that you can enter for trading, it would be impossible to do and also quite futile. Instead, we will discuss the most popular options that are being talked about these days. After all, we are attempting to unfold whatever this popular thing is actually legit or just a myth.
One of the first examples that comes to mind is that of cryptocurrency and if you have not heard about it yet, you are certainly living under a rock. Even though trading is so much more than just cryptocurrency, there are many people who would not know that they are two different things because crypto is the most popular trading market. A direct consequence of this popularity is that millions of people are using the best trading platform with crypto and this makes it a tremendously volatile market. Where this volatility opens doors for immense profits, it also leaves you vulnerable to hefty losses. So, the only thing that can be said about this at the moment is that if you want to enter the market, make sure you are well-prepared.
Other examples of less volatile markets are that of foreign exchange or commodities, where the prices fluctuate based on various political and financial factors that are a little more tangible. This does not imply that this is an easier alternative because it is not. It simply means that there are more stable factors that are backing these trading options.
How Much Profit Can You Make?
Saving the best question for last because of course this is the part which most people are highly interested in and we cannot blame them. Unfortunately, there is no simple answer to this question. If the question is limited to that of the possibility of making a profit, it truly is endless and some people have actually made those unreal profits. But this does not mean that there is any guarantee. In fact, people who have traded recklessly have sustained heavy losses as well. So, the answer to this question depends solely on how much time, knowledge, and money you have invested in your trading portfolio.
What Is the Bottom Line?
The only conclusion we can reach from the above analysis is that trading has immense potential if you are aware of what you are getting yourself into and if you are prepared accordingly. If you are entering the market aimlessly and simply to jump on the bandwagon, there is a higher chance that you will exit the market with disappointment.
Remember, there are no shortcuts or easy ways to become rich overnight. It takes hard work and dedication and if you can do that, trading is a great tool for turning your hard work and dedication into a lucrative stream of income. But we will leave it up to you to make up your own mind on whether trading has something beneficial to offer or not, with the hope that this article has helped you in finding that answer for yourself.