Forex Trading for Students: Why Students Try It and Can It Become a Reliable Source of Income?
Being a student is always financially hard. According to the latest report by ThinkImpact, the average cost of college is $35,720 per year. On top of that, the average student’s personal spending accumulates to $14,435.
Due to the high cost of education and life, 83% of students in the US own at least one credit card, and 34% borrow money to attend college. These numbers make it pretty clear that nearly all college students live on a very tight budget. So there is no wonder why they always look for ways to make money.
In order to afford their education, many young people do part-time jobs. Needless to say, combining traditional jobs with full-time studies isn’t easy. Thus, many students choose to use professional online essay writer services to do their homework just to have time to make money for a living. Still, it’s a significant commitment that takes lots of time and effort.
But is there a simpler way to increase your budget while in college? Forex trading has been a big topic for a while. And it still is. But is it really a reliable source of income or rather a too-risky venture? Let’s figure this out!
Why Do Students Engage in Forex Trading?
It’s hard to determine the exact number of students who try forex trading, as there is no centralized authority or organization that keeps track of this information. However, there are several indications that forex trading is growing its popularity among students. Namely, there has been a surge in the number of forex trading courses and educational materials specifically aimed at students. Additionally, some universities have started offering forex trading courses as part of their curriculum.
Knowing this, we can assume that quite a few modern students do engage in this venture. And there are several reasons for this:
- Extra income: Forex trading lures in students by the possibility of earning money while still in school.
- Flexible schedule: You can trade on forex from anywhere. Many also claim that it doesn’t take as much time as traditional jobs. So with some wise time management and the best research writing services, it can be done even by students with busy schedules.
- Learning opportunity: Forex trading can be a valuable learning experience for students. It can teach them about global economics, analysis, risk assessment and management, and many other topics.
Is Forex Trading Reliable?
Now that you know why students try trading in the first place, let’s try to understand whether it can actually be a reliable source of income for you.
First of all, we have to admit that forex trading can potentially be a reliable source of income. There are lots of success cases that confirm this statement. From George Soros to Andrew Kreiger—all these people are the image of possible broker success. So looking up at them, it can be easy to have high hopes for trading.
Nevertheless, it’s important to note that it also carries significant risks. Forex trading is a highly speculative activity that involves buying and selling currencies in an attempt to profit from changes in their value. The market can be volatile and unpredictable, and without exception, there is a risk of losing money.
Therefore, whether or not forex trading can be a reliable source of income for students depends on several factors, such as their level of experience, risk tolerance, trading strategy, and the amount of time and effort they are willing to put into it.
In general, students who are new to forex trading may not have the necessary skills, knowledge, or experience to be successful in this market, and they may be more likely to lose money than to earn a consistent income. There is a generally known figure in the world of forex that should make you extra cautious—as many as 90% of retail traders do not succeed. Some sources state that the failure rate is even higher—95%. These numbers alone show that those success stories make up only 5% to 10%.
On the other hand, students who are well-informed, disciplined, and have developed a sound trading strategy may be able to earn a reliable income from forex trading. Still, it is crucial to remember that forex trading is not a get-rich-quick scheme. Even with a due strategy, it requires significant effort and time to succeed.
The Bottom Line
All in all, the forex market is unstable. While it can work great for some people, for the majority, it is an unreliable source of income, associated with huge risks and losses. Success depends on numerous factors.
However, if you still decide to give it a try, here are a few basic tips to boost your chances:
- Educate yourself on the market to make wiser decisions.
- Learn the art of fundamental analysis, risk management, and trading strategies.
- Develop a solid, long-term trading plan and stick to it.
- Practice with a demo account before you invest real money.
- Keep a trading journal.
- Keep up to date with trends and major events that affect the market.
- Be patient and disciplined.
- And most importantly, always assess your abilities adequately and don’t risk more than you can afford to lose.
Use these tips to mitigate risks and make the most out of this venture!