Forex Mistake #85 – Trading Forex as a Student is why I’m Broke

Why can Trading Forex as a Student get you Broke?

As a student myself, I understand the incessant need for more money. Every student at one point will be thinking of nothing but those extra few pounds to tie them over until the end of the month. For economics students at least, trading Forex seems like an excellent way to earn those extra few pounds. You see yourself as an expert in all things economic, so what better way than to make money and enhance your knowledge than to trade Forex. Unfortunately, it was the premise of this argument that will cause students to lose even more of their increasingly precious funds. Too many economics students think of themselves as experts with years of experience and see Forex as an easy money making tool. This is not true! Students are often too quick to invest some money into a trading account, before doing any research or truly considering whether likely to profit from this venture.

 

How can Trading Forex as a Student get you Broke?

Before we consider how trading Forex could get you broke, we must first consider whether students should even risk starting to trade Forex. You won’t have much spare cash and any that you do have normally disappears very quickly on a night out. Most students won’t have the ability or the self-discipline to raise the sort of money required to even start a trading account. They must then consider the time that they are willing to dedicate to trade. If you already have a job at university, then balancing work, social life and trading Forex may be a balance that is just simply impossible. To succeed in trading Forex, which would be the ultimate aim for any student, then you must be willing to dedicate a lot of time, especially in the beginning, to learn how to trade and how to make profit. If you’re not an economics student or don’t have a great interest in Forex trading, then you’re unlikely to have the drive, the determination or the knowledge to succeed when trading. However, if you believe these circumstances don’t apply to you, then Forex could be a good opportunity for you to make some money. The first major problem, as previously mentioned, is that too many economics students think of themselves as gurus with all of the knowledge just because they’ve spent a year studying at university. Professional traders could trade for decades and many would still not consider themselves experts due to the intricacies of the financial markets. You must consider that you’re plankton in a pond roughly the size of the Earth and there are some very big sharks out there that enjoy gobbling up plankton. Once you accept this, you can learn to avoid the sharks rather than try to go toe to toe with them. The second problem is also as mentioned, the time aspect. Most students tend to migrate from bed, to lectures, to town and then bed again, with food interspersed throughout the cycle. There is little time for students to be thinking about the markets and waiting for the right time to buy and sell. Trading Forex would come as unwanted distraction that would very easily distract you from the more important university work. Finally, we have the finance problem. As we know students don’t normally have large sums of cash ready to start a trading account. Forex is not a bank account, there is high risk involved and if you’re not committed then a strong chance that you will lose both your money and your time invested. With large debts being run up as a student and with regular cash flow problems, it is often better to save your cash for a rainy day or to begin paying off some of the seemingly never ending debts. It may all seem like doom and gloom but there is a shining beacon of light which some students can see that allows them to make money, which as a student is invaluable. Understanding the risks and being prepared to commit some time to Forex trading is the first step to actually making some money.

 

Conclusion – Forex the Solution to all Students’ Financial Problems!

Unfortunately not true in the whole. Forex will likely cause more problems rather than solve any. There are three key attributes that every wannabe Forex trader must have money, time and patience. If you don’t have any one of these things, then you must evaluate whether you will truly be able to make a significant enough profit to warrant you to begin Forex trading. Unfortunately for students, these attributes seem to be those that you lack during your time at university. However, there are exceptions to the rule. If you have the time and money to dedicate to trading Forex then I encourage you to give it a shot. Never risk any money that you couldn’t afford to lose and you never know, you could be earning good money while still studying at university. Just don’t count on it!

 

Have We Saved You From Going Broke?

  • DJ Cosmo

    being a student myself I can totally relate. Trying to be my tuition trading Forex, with no much success so far.. Thanks for this wonderful blog, hopefully could help me alot! give FX a second chance huh!!

    Reply
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