Retirement is an inevitable phase that everyone has to go through in life. Unless you are a millionaire, retirement is probably a struggle for most. Having a quality life even after retiring is possible with a proper retirement plan. But the real question is whether you will have the adequate funds to sustain the kind of retirement lifestyle envisioned. Remember, the primary source of income will most likely come from 3 general sources for most retirees: government pensions, employment-related sources or personal savings.
Retired doesn’t mean incapable and retirees have all the right to earn something to support themselves even during the golden days. If you are retired or about to retire, you are probably asking yourself if there’s something that you can do that is not too difficult, stressful or time-consuming to provide the income you need. Forex might be the right fit. Even if Forex may be a tedious task due to the increasing volatility of the market, it is still one of the smartest choices for people seeking for post-retirement investment strategies.
What is Forex?
Forex also known as FX or the foreign exchange, is a financial market in the world where international currencies are traded. Being the largest market in the financial world, almost $5 trillion are traded on a daily basis. The Forex market is open to all those having an interest in trading but is most popular among banks, large multinationals and private investors. Currencies are exchanged on a day to day basis, which is why the Forex market is the largest and most liquid market in the world.
Why trade Forex?
The Forex market is open to all who have an interest in trading and on top of that, it is accessible 24/5, which means that someone can trade at any desired time.
- Low trading cost:
Some think getting started as a currency trader costs a ton of money. The truth is that trading online does not require too much money and Forex brokers offer different account types. At Trader.Online for example, only an amount of $250 is required to start trading.
Being highly liquid means that trading opportunities are always available. There’s no need to be on the hunt for the next best trading opportunity.
- No commissions:
Most brokers do not charge any commission. Brokers are compensated for their services via spreads which is the difference between the buy and sell price.
Factors to consider before trading Forex after retirement
Even if Forex is a reliable way to make a few bucks after retirement, there are still a few factors that you need to consider before stepping into the Forex market:
- Free time:
If there’s one point most retirees would agree on, it is having a lot of free time. Even if you are busy with something else, you can always keep an eye on the screen. So, it seems that regarding time, trading during retirement can work very well. Additionally, since the market can be traded 24/5, time is not an issue.
Trading Forex has quite a short learning curve. Before trading one just needs to know the basics of Forex and the different terms associated. Once the basics mastered, a trader can start trading. Start learning about the basics of Forex today.
- Financial pressure & risk:
This is an area where the exact circumstances of your retirement will matter. If you are well capitalised and can be relaxed about when profit arrives, you are in a stable trading situation and should be able to remain psychologically healthy which could stop you making any expensive or emotionally destructive mistakes.
- Emotional & physical health:
You might not be at your peak physical health by the time you retire. Even though it is more than likely that you have all your wisdom and intelligence intact, you must be brutally honest with yourself and question how precisely you are going to be able to use the technology under pressure. After all, trading is very unforgiving in the sense that even small errors can be costly, and cannot be reversed.The good news is that there are some steps you can take in this area to minimise the risks:
- You can trade using a slower system, perhaps relying upon daily, four-hour or hourly charts, which should enable events to unfold at a much more relaxed and manageable pace.
- You might also have a companion or helper who could provide a second pair of eyes to cast a look at your operations in the market.
- Last but not least, it is worth asking your broker about built-in safety measures that might be available for your protection.
Trading strategies for seniors:
Based on the advantages and disadvantages mentioned, you now need to decide if you will go ahead with Forex as a source of income during your retirement or not. If yes is the answer, then you will also need to determine what kind of strategy to adopt.
A trend following strategy could be ideal as these are long-term strategies that don’t require a lot of physical effort or result in any emotional stress.
On the contrary, if you have the required time and you are ready to devote that time to trading, then you might be able to take advantage of shorter time frames.
Getting started is simple and easy. Join a broker that worth both your time and investment and start trading today.