Putting money aside for the future is wise but often unappealing to people with modest earnings. Today, in Nigeria, there is a wide range of tools that can bring you profit without a sizable initial investment which makes the global market work to our advantage. Local providers like ForexTime broker in Nigeria allow individuals to begin with as little as $10. Currency exchange is just one of the possible ways to ensure a secure future.
Why we find it hard to invest
It is a feature of human nature to prefer instant gratification over long-term benefits. For instance, if you were offered to choose between $100 now or and 200$ in a year, you would probably opt for the former. This explains why many people would rather spend their money now than save up for the future.
This tendency also explains the irresistibility of digital devices and social networks that instantly deliver doses of dopamine into our brains. It also lies in the basis of sales and special offers that lure customers into retail stores. Victims of impulse shopping purchase items they do not need on the spur of the moment, influenced by colourful advertisements and the whole consumerism atmosphere.
Humans are emotional creatures, and the prospect of immediate satisfaction accounts for some of our irrational behaviour patterns. Saving up is boring. Why not live in the moment and splurge on whatever you like?
[READ MORE: Uncertainty strengthened as foreign portfolio investors pull out funds)
New format of investment and trading
Today, the range of investment instruments is much wider than decades ago. In addition to the conventional physical stocks that bring dividends and profit when sold wisely, we have fully digital tools. The emergence of the Forex market three decades ago revolutionized the concept of additional income.
Traders from all over the world still connect to global exchange through digital platforms. Profits made from currency trades are gigantic. An overall volume exceeding $6 trillion circulates in the marketplace every single day. Immense amounts are bought and sold by institutions and retail participants.
In the past, trading required large initial deposits. Modern brokers allow you to trade from the comfort of your home and with a very modest initial investment. For example, the so-called cent accounts are opened with deposits as little as $10. Thanks to the concept of leverage, your broker provides a portion of its capital to maximize your buying power.
For example, if the leverage ratio is 1 to 100, you can open a trade for $10,000 having only $100 in your account. The money you need to deposit is known as margin. This is one of the central concepts for Forex profitability schemes. Thanks to ForexTime, these opportunities are open to residents of Nigeria.
Future is uncertain
Even if you think you have your finances under control, force majeure may and will happen sooner or later. For instance, think of the coronavirus pandemic and collapse of the oil prices in March 2020, followed by the US stock market crash. The events revealed the vulnerability of many economies. Unforeseen geopolitical changes may undermine your vision of the financial future unless you take precautions to hedge your risks.
The market changes following the global spread of COVID-19 and the failure of the OPEC+ deal affects many countries. The tourism industry was hit hard, which meant losses for states that have previously made millions on foreign tourists.
[READ ALSO: Stock market drops below N12 trillion mark, investors lose N456 billion on Thursday)
However, the ripples of the oil collapse were the most salient in Russia where the rouble rate is largely dependent on the price for crude. Economists like these suffer the most strongly from fluctuations in commodity prices. Russian citizens who had made the effort to save up in foreign currency could now cash in on their prudence.
Digital investment tools
It is thus clear that investment is paramount, even in times of political and economic stability. It is now more diverse and accessible than before. Obviously, this is why the number of online traders has gone beyond 15 million worldwide. A local broker provides access to Forex trading and other fully digital opportunities. Investors capable of thoughtful analysis capitalize on currency pairs, precious metals, commodities, stocks, or even market indices.
Great analysis
This is a promotional articles for FXTM and doesn’t really sight much on what the “Title of Articles” is all about… BTW, e-Trading is not an investment one without quality eduction on trading the various market to get into it.