Reasons To Trade On The Forex Market
More and more investors and entrepreneurs are shunning traditional financial markets, like stocks, bonds , commodities and building their fortunes in the foreign exchange (Forex) marketplace.
The reason why they are turning to the all electronic world of Forex trading is its numerous advantages over any type of investments. Even if you are an experienced Stocks or Commodities trader you will discover how powerful the Forex is.
Forex Trading is much less risky than trading currencies on the futures market, much more profitable, and a lot easier, than trading stocks. It is possible to make $200 to $3000 in less than 30 minutes.
Why should you trade the Forex market?
1) The Forex market is open 24 hours, it never sleeps.
You can enter a position, or exit whenever you want, wherever you are six days a week. You do not need to wait for the opening bell like if you were trading stocks. It is excellent because you can choose the best time for you to trade.
2) The daily trading volume of the Forex is around $1.5 trillion dollars.
It is 30 times larger than the combined volume of all U.S. equity markets. This means that over one and million skilled traders could each take 1 million dollars out of the Forex market every day and the foreign exchange would still have more money left than the New York Stock would have daily!
3) You profit in both raising market and falling market.
You have equal potential to profit in either a rising or falling market, because it’s up to you to buy a currency, or to sell it, after you determined the market trend.
4) You can trade from anywhere.
If you like to travel, this is a dream business, you just take your lap top with you and that’s it, you can make money from anywhere in the world, all that you need is to have access to Internet.
5) The leverage is considerable.
In fact, you don’t need a lot of money to trade in Forex, it is recommended to start with $2000, but you can even start with $300. When you have a proved strategy, your investment will grow consequently, as you can trade up to 200 times your investment.
You can trade 100,000-unit currency lots with as little as a 1% margin, or $1,000. There is no comparison with the stock market where you need a big amount of money to start if you want to see real profits. Besides that, you need to post a 50% margin.
6) Price Movements Are Highly Predictable.
Price movement or highly volatile in the Forex, however, the foreign currencies market is moving in trends and you can identify these trends – as they repeat in cycle- with the technical analysis.
7) No commission fees.
Unlike the stock market, brokers don’t take commission on transactions. To trade in Forex, you don’t need to have a lot of money to start; you can trade at any time, from anywhere, as long as you have an Internet connection.
You will not have an order pending because of lack of liquidity and you will not have to work throughout the day.
The Forex market has many advantages over the other traditional investments. For sure, it will give you more freedom and more money.