Forex
trading popularity is on the rise. Many investors and curious bystanders are
now turning to currency exchange. What is so attractive about forex? Why is it
a comfortable way of investment? Why is forex the talk of the day?
Forex
market is the largest and most liquid market in the world. Lots of big
corporations are taking part – banks, currency speculators, government, and
financial institutions. Along with big fish, there are traders like you and I,
who slowly but surely take part in the $3 trillion daily turnover.
What
is so attractive about forex anyway? What made you enter the market arena?
1.
Trade Any Time, Any Day!
In
the beginning, several years ago, before turning forex to a full-time career, I
traded part-time. The greatest thing about this investment is that you can turn
it to fit your needs. The fact that forex market is up and running for 24
hours, it is continuous and volatile,
makes it possible to enter trades when It best suits you and still make
generous chunks of money without the need to search the market for
opportunities 24/7.
2.
Control Large Sums of
Money
A
very important feature in trading is leverage. All forex brokers allow traders
to use leverage, which is basically a loan that allows you to trade much more
money than you actually have in the trading account. For example, if the
leverage is 100: 1, you can trade $100 for every $1 in your account. This also
means, you can trade $100,000 having just $1,000 of your own capital.
3.
Even Small Movements
Means Profit
Forex
is all about liquidity. Large sums of money are getting in and out of the
market even with minimal price movements. Besides, you can choose the direction
of your trading decisions. If you believe that the currency pair is going up –
buy it! If you think that the currency pair is likely to fall in price, sell
it!
4. Relatively Low Fees
We all know that brokers get their commissions via
spreads. So since there is no transaction fee, there are fewer expenses for an
average trader. There might be some extra fees here and there, but it is
generally quite low compared to other commodities and stock market fees.
5. Practice Makes Perfect
My favorite feature in online currency trading is the
ability to practice. All forex brokers offer free demo accounts to all traders.
On top of that, many have courses and webinars for free or for rather small
fee. Mini accounts with very small minimum deposit requirements are also great
for practicing. You can get the feel of the market without potentially
devastating losses.
6. Money and Risk Management
In forex, like in any other kind of
investment, there is a chance of loss. I wouldn’t even use the word “chance”,
because loss is the required part of the game! The good thing is that you can
control your money and risk with stop/loss to limit losses based on irrational
decisions.
7. Trading Platforms and Tools
Today
brokers constantly compete for reputation and customers. Every broker differ in
one way or another – trading platforms are all different (whether in
configuration, download or online, tools included, or user-friendly interface
etc.), deposit requirements, features
and available tools are unlike, services and support is definitely unique. This
colorful variety allows you to find what suits you best.
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