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Wednesday, January 7, 2009

Can I Trade Stocks or Forex?

Let me first say that I am biased. I make a living trading Forex and so I obviously already made the choice of Forex over stocks. But I wonder on a regular basis, why Forex over stocks? . Let me take a moment and explain why I chose to trade in foreign currency market in the stock market.

1) Use - Unlike the stock market, Forex investor can take advantage of its investment much further. The type Forex trader trades at a leverage of 100:1. So, $ 1 for every dollar it invests in the market, it is able to trade $ 100. The high leverage can be a double-edge property. While Forex traders can make money faster, he can also lose more quickly. Forex, I chose because I can make money faster with higher leverage. You must decide if it is higher leverage risk higher is appealing to you.

2) 24 hours Market - Forex retail brokers are open 24 hours a day, 5 days a week. This means you can make money around the clock. This also allows the operator to use different strategies depending on the time of day. However, it can also be a bad thing. At 24 hours of the market has a tendency to overload the Forex Trader. Without good discipline Forex traders can turn into work. I chose the Forex because of the possibility of making money while I slept.

3) Most financial markets around the world - The Forex market is by far the largest financial market in the world. Analysts estimate that nearly $ 3 billion in daily volume of transactions through the Forex market, compared with only $ 25 billion each day at the New York Stock Exchange. Having such volume means any person, company, or even the government can control a currency to another. I have friends who are convinced of the grant is rigged . And while I don 't know that is true. I know that because of the huge volume going through the Forex market and the millions of readers each day of trading on the market, the chance that the game is stacked against me is much less.

4) make money in both directions - there is no such thing as a bullish or bearish market Forex. There are upward of currencies and the decline in foreign currency, but all exchanges are made through the purchase of one currency against another. This means that the Forex trader can always trade in a way beneficial.

5) low transaction costs - In the Forex, the cost to get in and out of the market is fairly low in terms of the currency pair traded. This low 'distribution' costs means that I am not far from immediately in all when I came on the market.

6) Accounts for free circulation, market analysis, charts, etc. - Most brokers offer free mapping, market analysis, news, and an account to learn the practice before trade. These allow you to very good Forex market trading.

7) began operations with as little as $ 250 - Now, I don 't recommend that anyone start trading until they have at least $ 1,000. However, the fact that anyone can start with as little as $ 250, depending on the broker gives you access to Forex is extremely easy.

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