Why should anyone consider Forex Trading as a means to making great money?
Forex Trading involves the exchanging of currencies. Many people are surprised to find out that the currency exchange markets are open 24 hours a day. The Forex offers many advantages over traditional stock trading.
As a Forex trader, you will experience these advantages:
24 Hour Market:
You can trade any time of the day giving you the ability to trade when you want. Finally, trading can fit into your schedule rather than you trading only when the market is open. You can trade during normal hours or after-hours, or both.
More Buying Power:
Traditionally with stocks, the maximum leverage you can achieve is a 4:1 ratio. If you are trading the mini forex, for example, you can obtain a 200:1 ration. This means that with $50 you can control a $10,000 lot of a single currency. Using leverage is not always the best form of trading but it does provide a new fx trader with more flexibility to try out different strategies.
More Liquidity than the Stock Market:
The foreign currency exchange market is the largest trading market in the world. Each and every day trillions of dollars exchange hands. Because of this, trades are executed with smaller spreads (the difference between the buy and sell price). This results in higher profits on winning trades.
A normal forex account needs to be funded with at least $5,000. If that is too much for you to risk, than you can trade the mini-forex. The mini only requires an initial investment of $250 so you can get started trading for very little. The mini lots are 1/10th the size of the full forex.
The forex pivot point trading techniques can be traded online with relative ease. Often broker sites will help with the education and opening of your account. If you are interested in furthering your education, there are many excellent and affordable Forex education sites available online.
In the stock market there are more ten thousand individual stocks in hundreds of industries and sub-industries. If you decide to trade the forex, there really are only about a dozen major currencies to trade. This makes it easier to do the research and analysis required to trade, saving you more time and effort.
Make Money in Rising and Falling Markets:
Like stocks, you can short the currency markets. However, with stocks, you have to wait for an uptick on the individual stock before you can open a short position. There is no such rule with the forex so you can enter a short position as soon as you make your decision.