Lately it seems that more and more investors and share traders are turning away from the traditional markets, like stocks, bonds and commodities and looking to building their fortunes in the foreign exchange (forex) marketplace.
Some of the reasons why they are changing to the exciting world of Forex trading is because of its many advantages over other traditional forms of investments.
Here are Seven reasons why traders are changing over to Forex Trading.
1) The forex market is open 24 hours a day, it never sleeps.
You can enter a trade, or exit whenever you want. You do not need to wait for the market to open.The hours are not so restrictive as the stock market. You can choose the best time that suits you for when you want to trade.
2) The daily trading volume of the Forex Market is around the $1.5 trillion dollar mark. It would be at least 30 times greater than the volume of all the USA equity markets combined.
3) You can make a good profit in either a rising market or a falling market.
You have the potential to profit in both a rising or falling market, because it is entirely up to you when you buy a currency, or to sell it, after you have ascertained the market trends disposition of course.
4) You can trade from anywhere.
If you are a traveller, you can just take your lap top with you and that’ s it, you can make money from wherever you are in the world, all that you need is access to an Internet Connection and you are in business.
5) The leverage with Forex is considerable.
You do not need a lot of capital upfront to start trading in forex, you can actually start with as little as a $100.Then provided you have a proven forex system in place, your investment could grow accordingly, as you can trade up to 200 times your investment due to the leverages involved. You could trade 100,000- unit currency lots with as little as 1% margin, or $1,000.
As you can see there is no comparison with the stock market where you need a reasonable large amount of money to start,that is if you want to see the same profits as you would make trading Forex.
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6) Price Movements Are extremely Predictable.
Price movements can be extremely volatile in the forex market, however, All currencies in the marketplace invariably are moving in trends, and if you are able to identify these trends as they occur. By confirming these trends with the use of technical analysis, these can then be used to your advantage which will in turn enhance your profit margin considerably.
7) No commission fees.
Unlike the stock market, the brokers do not charge you commission on transactions.
Bonus reason. Forex Trading is a lot less speculative than trading currencies on the futures market, but it can be a lot more profitable, and a lot easier, than trading stocks.
To summarise all of the above points. To trade forex, you do not require to have a lot of capital to start with; you can trade at any time you like, from anywhere in the world, with a Internet connection.The forex market has numerous advantages over the other types of traditional investments, and for sure, it will give you a lot more freedom, and hopefully a lot more money.
Chris Strudwick is a successful share trader on the Australian Stock Market Visit his weblogs at both http://www.asxnewbie.com AND http://www.aussie-retiree.com/ for
more free articles and useful information about the stock market.
