Why You Should Trade Forex?

What You Should Know About Forex

• What Is Forex?
• Welcome To The World of Currency Trading
• The Miracle of Forex
• Why You Should Trade Forex?
• How Currencies Devalue?
• Where Is The Market Going?
• Forex Trading Philosophy
• Most Popular Crosses

Forex trading online is a fast way to use your investment capital to it's fullest. The Forex markets offer distinct advantages to the small and large traders alike, making Forex currency trading in many ways preferable to other markets such as stocks, options or traditional futures. Here are seven reasons why you'll want to look into Forex Trading online.


1. Forex is the largest market.

Forex trading volume of more than 1.9 billion, more than 3 times larger than the equities market and more than 5 times bigger than futures, give Forex traders nearly unlimited liquidity and flexibility.


2. Forex never sleeps!

You can execute forex trading online 24/7, from 7AM New Zealand time on Monday morning, to 5PM New York time on Friday evening. No waiting for markets to open: they're open all night! This makes Forex trading online a very attractive component that fits easily into your day (or night!)


3. No Bulls or Bears!

Because Forex trading online involves the buying of one currency while simultaneously selling another, you have an equal opportunity for profit no matter which direction the currency is headed. Another advantage is that there are only around 14 pairs of currencies to trade, as opposed to many thousands of stocks, options and futures.


4. Forex Trading online offers great leverage!

You can make the most of your investment resources with Forex trading online. Some brokers offer 200:1 margin ratios in your trading accounts. Mini-FX accounts, which can typically be opened with only $200-300, offer 0.5% margin, meaning that $50 in trading capital can control a 10,000 unit currency position. This is why people are flocking to Forex trading online as a way to highly leverage their investments.


5. Forex prices are predictable.

Currency prices, though volatile, tend to create and follow trends, allowing the technically trained Forex trader to spot and take advantage of many entry and exit points.


6. Forex trading online is commission free!

That's right! No commissions, no exchange fees or any other hidden fees. This is a very transparent market, and you'll find it very easy to research the currencies and the countries involved. Forex brokers make a small percentage of the bid/ask spread, and that's it. No longer any need to compute commissions and fees when executing a trade.


7. Forex trading online is instant!

The FX market is astoundingly fast! Your orders are executed, filled and confirmed usually within 1-2 seconds. Since this is all done electronically with no humans involved, there is little to slow it down!

Forex trading online can get you where you want to go quicker and more profitably than any other form of trading. Check it out and see what Forex trading online can do for you!

Why You Trade Forex?

You may be comfortable accepting the fact that you don’t know everything there is to know about trading yet, but you definitely should have a good idea about several things when you get into trading. The first is why you want to trade in the first place. People have a number of motives for trading, all of which have merit, but you should be clear what it is that is driving you into trading. Your reasons for trading may go a long way in determining your trading style.

Profits

Probably every trader’s goal is to make money. But if that is your main reason for trading, are you willing to do what it takes to achieve this goal? It will mean you have to provide the seed money and other resources you need to be successful, and it will involve a commitment to learning to gain trading experience.

If trading is going to be your business, you obviously have to put making money high on your list of goals. That requires consistent, strong discipline and the ability to control your emotions as none of the experience or success you have gained in other areas will guarantee that you will be a success in trading. Your trading approach may even be boring, but if your real goal is making money, you will have to have the discipline to stick with a trading plan.

Being 'right'

Are you a person whose greatest satisfaction comes from being right about things? Traders generally love to compete and be better than everyone else in whatever they do. Just having the opportunity to crow a little about their prowess is their biggest reward.

However, trading may be one of the worst places to look to feed an ego. Whatever success you have had in other aspects of your life may not transfer very well to the trading arena, which has been known to humble even the strongest ego. Of course, traders have to have a strong sense of ego to have enough confidence to trade, but you’ll have to keep that ego in check whenever you enter a market position if you want to survive as a trader.

Excitement

Trading certainly can provide plenty of excitement, both highs and lows, and that may be reason enough for trading. But expect to pay an entertainment tax. Just being in a market position can be exhilarating and can inspire you to keep up with what’s happening in the market and in the world’s news events.

However, to be successful over a longer term – unless you have deep pockets – you usually will have to forego the excitement and emotion generated by trading, just as you have to keep a lid on your ego trip. You naturally will experience some excitement whenever you are trading, but it is a factor you must control. If excitement is an objective of trading for you, perhaps the solution is to have one account you trade conservatively and another account where you get a little wilder.






Basic Trading Tutorial

• You Need To Know What You Don't Know
• Why You Trade Forex?
• What Your Resources?
• Trading Mentality
• The Language of Trading