Why Trading Forex Beats Being a Farmer

Podcast: Why Trading Forex Beats Being a Farmer In This Video: 00:54 The Challenges of Farming 01:57 Forex Gives you Complete Control 03:59 An Email about Trading Skills I want to talk about why trading Forex beats being a farmer, so let’s get into that right now! Hi Forex Traders, it’s Andrew Mitchem here, today is Friday the 12th of June and in today’s video and podcast, I want to explain to you the differences between what I used to do, which is being a dairy farmer, and what I have done for the last 12-years, which is being a Forex Trader or a currency trader. And I want to explain why in my opinion, what I currently do now far outweighs being a dairy farmer, so let’s talk about that because I’ve got fairly good experience about both. Now, I was born on a dairy farm, I’ve been educated in agriculture, I moved to New Zealand 19-years ago to continue farming. I’ve owned a farm, I’ve sold a farm – so I’ve got a fairly good understanding of farming. The Challenges of Farming But the problem with farming, and dairy farming in particular, is that so many aspects of it are outside of your control. * You don’t have any control over the weather, the climate. * You don’t have any control over disease. * You don’t have control over a lot of your costs such as fuels and fertilizers and feed costs. * You don’t have control over legislation in terms of safety requirements and food hygiene requirements that come in. Everything that adds to your cost and really does affect your business in so many ways and you have really little control over all of those things. Yet you have a massive amount of assets tied up, capital tied up within the animals or within the farm. And a lot of people seem to think, for some reason that you don’t have much control over what you are doing when you’re a Forex trader. But actually I believe that that’s incorrect. I believe that you actually have a lot of control over what you’re doing as a trader and let me explain why. Forex Gives you Complete Control You see, when you’re trading Forex, you have control over what you trade – which currency pair you trade, when you trade; what time-frames you trade; which direction you trade; you can be a technical trader, a fundamental trader or a combination of both; you can control your risk that you take on a trade. You can close part of a trade, you can move stop losses, you can close all of your trades, you can do whatever you like. Of course you can’t control the actual movements within the market but that’s where education and knowledge comes in and understanding price patterns and what’s happened previously in terms of support and resistance and how that’s likely to affect your trades going forward. But when it actually comes to be able to manage your trades and place your trades, you actually have a huge amount of control – far more than you probably do within farming when major parts that affect your business are completely out of your control. And also don’t forget the actual barriers of entry – the cost of being a dairy farmer are enormous and involve huge amounts of debts for most people whereas the cost of entry into trading – a computer and Internet connection, if you want to go well with your trading – likely some form of education – and then, once you’re ready to go from demo to live, some form of assets in terms of account to trade on. But really, that’s quite low when you consider the barriers to entry for trading as opposed to farming. So I hope that explains it – I’ve seen both sides of the equation – I’ve seen the physical aspect of being a farmer and I’ve seen the online version and what I’ve done for the last 12-years of being a trader. So to me they are two very different aspects ther...