In this very unstable economy, many of us are enduring the pains of debt. With the unemployment rate at record highs and so many foreclosures, it seems almost like debt is some sort of financial fad right now… because “everybody’s doing it”.
So, what can we do to get out of debt? Well, of course we have the options that all of us are well familiar with by now: bankruptcy, debt consolidation, settling with creditors, and so on.
For those in the specific circumstance where you have money in reserve and are trying to pay your debt down as quickly as possible before that reserve is depleted, there is another rather unique approach to debt – foreign exchange (forex) trading.
This is a good time for a disclaimer and a caution. We are not saying that everyone should just go out and open forex accounts for themselves and start trading like mad. While the reward potential of this type of trading is extremely high and can be very lucrative, the risk is also extremely high. Anyone who decides to trade currencies should be prepared to lose all the money that they put into their trading account. So, if you don’t have the stomach for this sort of thing, don’t do it. Seriously. Don’t.
For the rest of you who are still reading, yes, it’s true. Trading the forex can bring you lots of money if you get well educated on how to properly do so. So here are the steps that you should take, if you have the circumstances and want to try this approach to help you make enough money to address your debt issues:
There are many books, online courses, websites, and classes that can help you to learn basic and advanced strategies. Focus on proper money management strategies and trading psychology.
You know the saying, “Practice makes perfect”? Not true. But practice does make better. Open a demo account where you can trade with real live market data using play money. Don’t start with real money until you’re absolutely confident in your skills and are a consistent trader.
Hold on there, cowboy. Don’t just close your eyes and jump into this with both feet. Start slow. This is real money now. If you lose it, it’s gone. The psychology of real trading is different than with a demo account. Tread carefully.
Always be deliberate with every trade. Stick to your trading plan. Set your stops and limits. Live by your money management rules. Don’t be greedy.
If your debt is breathing down your neck, take the money you’d like to trade (again, no more than you can lose without hurting yourself), and join a managed account with a solid track record.
Remember, trading can be risky. But if you learn the ropes and trade with discipline, it is possible to reap enough rewards to pay off your debt. If you get to this point, you can continue and begin enjoying the profits after your debt is gone.