Why Trade Forex And Not The Other Markets?
There are many reasons for “Why Trade Forex?” Trading the Forex can be an exciting and rewarding activity. Exciting on a level that making money (especially making lots of money) is always exciting. Rewarding on a level that successful trading is the result of hard work from learning a life skill that will provide a living to you and your family.
For many years the Foreign Exchange (Forex) Currency Market was out of reach to the average investor. It was only available to large financial institutions such as banks, pension funds, and insurance companies. It required tools that just were in reach of individuals.
All of that has changed in recent years with the availability of small account sizes, powerful personal computers, and broadband internet connections. Currencies are traded by retail investors in the “off exchange” market, a market that is huge, liquid, and growing.
Another reason to answer the question of why trade forex is the fast access to abundant, real time information through data feeds, blogs, content websites, articles, newspapers, and magazines put the individual trader on a level playing field with all market players. Traders can research the market at will and make their own conclusions about the direction of the market.
With that in mind there are three functional benefits that establish Forex as a viable and legitimate opportunity for anyone considering controlling their own destiny by opening their own home based business.
More Reasons For “Why Trade Forex?”
Leverage– The Forex market offers the best return on investment of any financial market through leverage. You are able to use small cash outlays to control relatively large amounts of capital. Ratios can go up to 200 to 1. This would allow a $1000 account to control $200,000. The caveat obviously is risk. With increasing leverage there is increasing risk, therefore money management is key to controlling your risk.
Schedule – The Forex market literally trades 24 hours a day. It opens at 5 PM Eastern time on Sunday and closes at 5 PM on Friday. The primary trading sessions are in the US, Europe, and Asia. You can trade on your schedule and monitor the news and it’s impact on market movement.
Volume – At 3.2 trillion dollars per day the sheer size of this market dictates price stability and liquidity. It would be almost impossible for any one entity to control this market. For that reason this market is the not as subject to the control of market makers that you find in other financial markets like stocks and commodities. It is immediately liquid to any investor.
In summary, trading Forex is an exciting activity that is a continuous learning experience. The challenge of trading becomes a passion and provides motivation, intrigue, and the drive to learn more. These are great answers for “why trade forex?”.