Take a look at some of the advantages of trading Forex over stocks

7:15 PM / Posted by E-pr0 /

You can profit in an up or down market. When trading stocks most of the money is earned in bull markets, which is very limiting. With Forex, you can easily profit in both directions, long and short, and make profits on the fluctuation of the exchange rates between any two currencies. It matters not which currency is rising or falling in value against another.

Forex is the most liquid market in the world. Because of its size, there is never a problem buying or selling a position, no matter how large. In addition, your funds are not tied up for long periods as they are when waiting for stock values to rise. With Forex your account is totally liquid, just as readily available as your bank account.

Forex is much more predictable than stocks. Many studies of trend following systems prove that currency trends are the most consistent and profitable. Regardless of the type of trend following system used; long term, intermediate term or short term, currencies invariably outperform all other markets including stocks, bonds and other commodities. The stock market is tiny compared to the vast foreign exchange market, and technical trading with stocks is not always reliable because the fundamentals of stocks can change with the wind. The Forex market is much more reliable and predictable, and the trends once they begin tend to persist, giving tremendous opportunities for profit.

No commissions or exchange fees. There are NO trade commissions when trading Forex. Brokerage companies instead make money on the spread (difference between the buying and selling price) which barely affects your profits at all. It's MUCH better than commissions! You end up saving a lot of money on costly commissions when trading Forex.

24 Hour a day market. The Forex market does not come to a halt each day at the close of business hours like the stock, equity and commodity markets do. The gaps and erratic price jumps these gaps in the market cause can cost a trader dearly. The Forex market never stops trading the entire week long. Only on the weekends does the market temporarily stop trading until Sunday evening.

Trade mini contracts with an account as little as $300. There is now the option of opening an electronic mini Forex account which allows you to trade with $100 per trade and start out by taking much smaller risks than you often have to take with stocks or equities.

High leverage. When trading Forex you enjoy up to 50 times the leverage of trading stocks. In stocks, for every $1,000 cash you invest, you control a maximum of $2,000 worth of stocks. The maximum leverage is 2:1. But with Forex, if you invest $1,000 margin on a foreign currency trade, you can control up to $100,000 in currencies.

0 comments:

Post a Comment

Alpha Inventions

http://alphainventions.com

What Is Alpha Inventions ?

Write a nice post on your blog about alphainventions.com or how it works and your blog will be added to the reading cycle automatically. Your blog will remain there until someone else writes a post about us.

This is the best way to get more readers from alphainventions.com I know the person that is currently in the cycle is very happy as it will bring them thousands of new readers a day if the blog is in the reading cycle that long.

Go to alphainventions.com to see what I mean.