Forex trading can be done from anywhere. Grab a laptop and turn on the internet connection, then it could Transact from your trading account. Another advantage of forex is no need special education or diploma to start. With the right training course, you can directly Transact.
Here are 7 reasons why you should learn forex trading:
1. Forex market Never Closes
The Forex market is open 24 hours a day (except weekends), which means in the United States will open on Sunday at 3:00 pm EST and closed on Friday at 5 pm EST, so as to allow traders can transaction anytime as you wish. When compared to the stock and commodities markets, then the opening hours of the Forex markets seem far more profitable. For example, us stocks traded only at 8:30 am-6:30 pm (EST) on weekdays only.
The flexibility of the time in the forex market is certainly will give You enormous leeway to determine when you will Transact. For example, you might decide to trade after coming home to work, early morning, or in any other time. Whenever you want to trade, at any size, there will always be enough buyers and sellers into a pair of your transaction. The nature of a market such as this will certainly give you the leeway to manage trading during your daily routine.
2. Minimum investment
In forex transactions, we do not need very large funds. Unlike with conventional trade that requires funding of the items to be purchased, on forex we only require much less funding.
You can open a Forex trading account according to your financial ability. There is a broker where you can open an account with a capital of at least $ 1 or $ 5. Of course, the more funds you prepare for trading forex, then it will be getting bigger also your ability to take advantage of market movements, but to start trading forex is actually not need capital.
3. Leverage is great
In the stock market, not many people are willing to lend or bank capital for free. If they exist, would be very difficult to convince them to want to give loans. Therefore, happened in the stock market is, if you have an account of $ 10,000, you will only really afford to buy shares worth $ 10,000 only. Leverage in the stock market the most is only 4:1, and leverage on commodity markets varies depending of the commodities traded. Because the commodity markets that is not liquid like Forex market, leverage tends to be small.
By contrast, in the currency market, You can use the ' money lent ' (leverage) more easily and in larger quantities. For trading with a balance of $ 10,000, you only need to spend about $ 50 (margin lending ratio of 200:1) up to $ 200 (margin lending ratio 50:1). Depending on the size of the Forex account, You may be able to leverage 100:1, 200:1, there is even a broker that offers a leverage of up to 500:1 or 1000:1.
4. Can generate profits in Any market conditions
Forex trading opportunities are seen as prices are fluctuating (up and down). And the magnitude of the rate fluctuations are known as volatility. Volatility is a measure of the maximum refund that can be generated by a trader. Volatility for the most liquid shares is between 60 to 100. Meanwhile, volatility for trading currencies is 500. You can profit from volatility by making use of the capabilities of the forex market to "buy" at a time when expectations prices will rise and "sell" as prices are forecast to be down.
Usually in normal trade, to get the profit we need to buy goods with a lower price and then sell them at higher prices. In a conventional business, you don't get to be the buyer while the seller in the same period. Also different with a stock can only profit if prices rise. In forex trading, a transaction can occur in two directions: buy and sell.
5. Low transaction fee
A transaction currency is not normally subject to a Commission or transaction fee. For forex traders, the spread is only needed to take a position trading. Due to low transaction fee, individuals can constantly dealing with a small fee. As an estimate, you are only given the spread of 0.03% of the size of your position. For example, you can buy and sell 10,000 Us dollars with only incur a spread of 3 points, or the equivalent of $ 3.
6. Unlimited earning potential
To be able to generate profits from forex trading is not easy. As with any other business, you have to be diligent and do not easily discouraged. However, once you have a mature experience and understand the techniques generate profit through forex trading well, so your earning potential is unlimited. There have been many stories of successful forex trader is told, and you have a chance to be one of them. Forex Trading offers a great return on an ongoing basis if managed properly, so that it can serve as a long term business. However it should be noted, forex trading is not for those who want to get rich.
7. Market Transparency
In stock trading, will very likely you are experiencing the event where one news alone can raise or lower the price movement of a stock that you have purchased. Stock prices can be drastically changed due to action or no action from one or a few individuals.
On the other hand, the value of currencies are influenced by many factors and also by many individuals or groups. Because the coverage is great, the currency market is difficult to manipulate. The possibility of ' insider trading ' is almost non-existent. This is a great profit in forex trading. You can manage risk and carry out orders in a matter of seconds. Very efficient and allows to avoid things that are unexpected as "surprise" trading.
Conclusion
Forex trading is indeed a high risk, but with a good trading system, a good money management skills, and some level of self discipline, Forex trading risk can be minimized. Especially when you've got enough guts and ready to apply yourself to learn forex trading to be successful.
The Forex market can be traded anytime and anywhere. As long as it has access to computers and the internet, you can certainly trade. An important thing to keep in mind before entering into currency trading is an exercise with the "virtual money" on demo account. You can search for the trading platform and forex brokerage practice in real-time with real market data, but without risking your own money. Although the demo account is not a guarantee of success, but the practice can make you better prepared when start trading with real money.
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