Why Trade your FOREX? - Finance

My objective for writing this report is to demonstrate to you the benefits of trading on the FOREX industry. But, there is one myth that I want to dispel ahead of I go further. The myth is that there is a difference amongst trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Provider, who wrote "If It Doesn't Go Up, Do not Purchase It". He stated "Absolutely everyone who invests is a trader, only the time period is distinctive." It is a lesson that I took seriously after taking a beating in the stock industry in 2000.So now, let's compare capabilities of currency trading to those of stock and commodity trading. Liquidity - The FOREX industry is the most liquid monetary industry in the world about 1.9 trillion dollars traded everyday. The commodities industry trades about 440 billion dollar s a day, and the US stock industry trades about 200 billion dollars a day. This ensures greater trade execution and prevents industry manipulation. It also ensures conveniently executable trading. Trading Occasions " The FOREX industry is open 24 hours a day (except weekends) which signifies that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to pick out the times they want to trade. Commodities trading hours are all more than the board depending on which commodity you are trading. Like extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays. Leverage " Based on your FOREX account size, your leverage may perhaps be 100:1, though there are FOREX brokers that offer you leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock industry can be as high as 4:1, and in the commodities industry, leverage varies with the commodity traded but it can be rath er high. Mainly because the commodity markets are not as liquid as the FOREX industry, its leverage is inherently riskier. While I was in no way shut out of a commodity trade by the day limit, the fear was always in the back of my mind. Trading costs " Transaction costs in the FOREX industry is the difference amongst the obtain and sell price of every currency pair. There are no brokerage charges. For both the stock and the commodity markets, there are transaction costs and brokerage charges. Even when you use discount brokers, those charges add up. Minimal investment " You can open a FOREX trading account for as small as $300.00. It took $5,000 for me to open my futures trading account. Concentrate " 85% of all trading transactions are produced on 7 significant currencies. In the US stock industry alone there are 40,000 stocks. There are just more than 200 commodity markets, though rather a couple of are so illiquid that they are not traded except by hedgers. As you can see , the fewer quantity of instruments permits us to study every one much more closely. Trade execution " In the FOREX industry, trade execution is practically instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their outcomes are occasionally inconsistent. When all of these capabilities make trading the FOREX industry pretty desirable, it nonetheless calls for a lot of education, discipline, commitment and patience. All trading can be risky.

Here's How You Can Start Generating Funds With Forex The Painless Way!Visit my web-site below./66499