Since the Great Recession, the financial marketplace and service sector has undergone a sustained period of uncertain and sluggish recovery. This has led to the volatile economic climate that exists today, with inflation rising at a disproportionate rate to wage growth and a lack of skilled job opportunities available to applicants.
This, along with the proliferation of technology, has created an entire generation of sole traders and entrepreneurs who are determined to forge their own fiscal future.
It is estimated that nearly 40% of the U.S. labour market will work independently by 2020, for example, while there are now more than 1.5 million freelancers in the UK.
Why a financial market career may still make sense for aspiring entrepreneurs
While an uncertain financial climate may have encouraged many to turn their back on traditional job roles, however, this does not mean that entrepreneurs are turning their back on the world of finance. In fact, many aspiring entrepreneurs are seeking out career opportunities as financial market traders, with diverse and liquid sectors such as forex particularly appealing.
This is because the forex market enables individuals to trade currency as a derivative asset, meaning they are relieved from the burden of ownership and can actually profit in a depreciating climate. By using trading vehicles such as spread betting, it is possible to hedge against devalued currencies and generate a profit.
The agile and opportunistic nature of the forex market aside, there are other reasons why financial trading should appeal to aspiring entrepreneurs. After all, many of the barriers to entry that once surrounded the forex market have been removed by technology, enabling inexperienced investors to build knowledge and apply this practically. Third-party learning resources such as the Sharp Trader website are particularly insightful, as they provide crucial trading lessons that are delivered through text, webinars and advanced videos.
Of course, this theoretical knowledge is meaningless unless it can be applied practically, which is where online trading platforms come into play. These tools offer you immediate access to demo trading accounts, which expose you to a simulated, real-time market where you can execute orders without risking your hard-earned capital. Demo accounts can be used for up to six months, giving you ample opportunity to refine your trading strategies and translate your knowledge into something tangible.
The current generation of online trading tools also offer access to a comprehensive and variable range if analytical tools, driving informed decision making whether you are a day-trader or someone who looks to leverage longer-term gains.
Managing risk and leveraging economic uncertainty
It is also interesting to note that trading platforms are increasingly automated, as they use features such as stop losses to help traders and financial entrepreneurs minimise their risk.
When you apply a stop loss to a trade, this establishes a specific value at which positions are automatically closed. This means that as a specific position begins to lose money, this will close at a predetermined point and prevent you incurring significant losses. It is this that makes has made forex trading in particular such an accessible activity in real-time, as investors can automate much of their activity and safeguard their capital at all times.
From an entrepreneurial perspective, the true appeal of forex trading lies in the fact that economic uncertainty and volatility can be turned into strategic advantages. Given that 96% of traditional business ventures fail within 10 years (often due to issues such as cash-flow and economic decline), tapping into a liquid revenue stream and being able to profit from a depreciating economy is music to the years of today’s entrepreneurs.