Forex Market Popularity
One of the most popular trading venues for investors is the Foreign Exchange or Forex market. This market works from the principle that currencies have an exchange rate that varies from day to day - even hour by hour. Buying currencies and working the trades (whether a short-sell or a buy-and hold position) can turn a nice profit. The forex markets are worth roughly three trillion dollars of action each day.
Forex is popular because it's accessible, and, on the surface, easy to understand. Your trade is aggregated to your broker, and entered straight into the market, meaning that it's possible to be a very agile trader, playing on the market's daily volatility. There are trading programs that you can download that can handle the routine actions of buy and sell orders, and even alert you of possible trends.
Forex markets happen the world over, not in some fixed location; you're trading online (like the major brokerage houses do). An order gets put in and gets consolidated at the broker's desk with all of their other clients. From there, it goes on to the market, and that means you can run from the start of business on Monday in London to the close of business on Friday in Hong Kong, 24 hours a day, for almost six days a week including the time zone adjustments.
In addition to that, you get to control large sums of money without having to actually have that much money in your account. Some brokers allow you to use 500:1 leverage on your trades. This means that for every dollar of your money you're trading, you are actually trading 500 actual dollars in the markets. Using other people's money is how people can create massive wealth for themselves.
Besides the ease of trading the forex market, you can realize huge gains in this form of trading. Unlike stocks where a stock raises based on an individual companies performance, these securities are rising and falling drastically at all times of the day. It is based on a lot of different factors and has a huge potential for profit.
Like any investment, there is an element of risk. Especially when playing with large amounts of leveraged capital, you run the risk of big losses. Be careful, start out slow, and used strict money management techniques while you figure out if this is a job you like.
Forex has a lot of strategies beyond day trading. One of the saner ones, for people who don't want to be glued to the Internet for 100 hours a week, is position trading. There are longer term trends in forex trading and this is a lot less stressful (and time intensive) than trying to run the volatile day by day swings.
Overall, the power of the forex market is what makes it so appealing. Many have compared this to the gold rush in that it is a way for a common man to become immensely wealthy. Just make sure that you know what you're doing, or you'll lose all of your money in a flash. Be prepared to learn a lot and keep your lessons in mind when you trade. With this type of power, you can provide for you and your family for years to come. - 23217
Forex is popular because it's accessible, and, on the surface, easy to understand. Your trade is aggregated to your broker, and entered straight into the market, meaning that it's possible to be a very agile trader, playing on the market's daily volatility. There are trading programs that you can download that can handle the routine actions of buy and sell orders, and even alert you of possible trends.
Forex markets happen the world over, not in some fixed location; you're trading online (like the major brokerage houses do). An order gets put in and gets consolidated at the broker's desk with all of their other clients. From there, it goes on to the market, and that means you can run from the start of business on Monday in London to the close of business on Friday in Hong Kong, 24 hours a day, for almost six days a week including the time zone adjustments.
In addition to that, you get to control large sums of money without having to actually have that much money in your account. Some brokers allow you to use 500:1 leverage on your trades. This means that for every dollar of your money you're trading, you are actually trading 500 actual dollars in the markets. Using other people's money is how people can create massive wealth for themselves.
Besides the ease of trading the forex market, you can realize huge gains in this form of trading. Unlike stocks where a stock raises based on an individual companies performance, these securities are rising and falling drastically at all times of the day. It is based on a lot of different factors and has a huge potential for profit.
Like any investment, there is an element of risk. Especially when playing with large amounts of leveraged capital, you run the risk of big losses. Be careful, start out slow, and used strict money management techniques while you figure out if this is a job you like.
Forex has a lot of strategies beyond day trading. One of the saner ones, for people who don't want to be glued to the Internet for 100 hours a week, is position trading. There are longer term trends in forex trading and this is a lot less stressful (and time intensive) than trying to run the volatile day by day swings.
Overall, the power of the forex market is what makes it so appealing. Many have compared this to the gold rush in that it is a way for a common man to become immensely wealthy. Just make sure that you know what you're doing, or you'll lose all of your money in a flash. Be prepared to learn a lot and keep your lessons in mind when you trade. With this type of power, you can provide for you and your family for years to come. - 23217
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posted by X - Men @ 4:45 AM
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