There is a lot of information online about the possibilities you can unlock if you venture into forex trading. Ordinary people in Hong Kong are free to open a forex trading account and make a career out of day trading in forex. The forex market is open 24 hours a day and there is no limit to the currency pairs or trades you can make.
Do people make enough money in FX to sustain them in Hong Kong? What are the average expected earnings and losses in this business? We discuss Forex trading from the ordinary Hong Kong citizen’s perspective.
First Things First- Is Forex Trading Legal in Hong Kong?
Hong Kong is one of the most attractive business destinations in this part of the continent. Forex trading is a major economic activity here and therefore legal. Anyone can venture into profitable FX trading in Hong Kong so long as they have the capital and skills to trade. The Hong Kong Securities and Futures Commission watches over the Forex trading business here. They are responsible for the regulations and supervising FX brokers.
If you want to start forex trading in Hong Kong, you should find a broker that is licensed and regulated by the SFC. This way, you won’t be exposed to fraudulent activities that may get you in trouble. It is easy to ascertain the authenticity of a forex broker/trading platform by visiting the SFC’s official website.
Forex Trading Is All About Risk and Reward
Just like any other business venture, forex trading also carries a degree of risk. In order to make money trading, you need to put your own money on the line. There is a notion that FX trading carries a bigger risk as compared to other trades. This couldn’t be further from the truth since FX trading is mostly an equal opportunity, equal risk venture.
One could argue that FX trading carries less risk than most brick and mortar ventures. With forex trading, you have total control over what happens to your bottom line. You don’t need to employ someone or outsource since you can venture into FX trading alone. The entire business is usually web-based therefore no need for expensive establishments and insurance.
You Can Reap Big Profits as A Successful Trader
While it’s true that not everyone who ventures into forex trading makes huge profits, it is possible to make a kill in this business. Forex trading is one of those activities where you can make large profits in a very short time and vice Versa. It all depends on your risk appetite and ability to read the trends and make trades.
You have so much control with what happens to your deposits when trading. Smart FX traders often employ a combination of tricks to safeguard their deposits while risking. People often say that you can end up losing your entire deposits when trading forex. The truth is that it is possible to control how much money you lose if things don’t turn out as expected. Experienced traders use highly effective exit strategies to stay on track and keep their deposits healthy.
A Diversified Trading Portfolio
There is no limit to the number of currency pairs you can trade in the FX market. This makes it easy for traders to have a diversified portfolio they can use for hedging and other winning strategies. A smart trader will always seek to deeply understand the movement of several currencies that they will use in their day to day trades. This way, they are not stuck with a single strategy that collapses when something major rocks their favorite trading pair.
Hong Kong is one of the best places in Asia to launch a career in Forex trading. With a favorable regulatory environment, good internet connectivity and a robust financial system, Ordinary Hongkongers can be successful in this trade. Take some time to learn the ropes of FX trading and you can make a career out of it.