 |
FOREX Freedom
by Monique Briand
http://www.forextrainingcentre.com
The FOREX (Foreign Exchange Currency Trading Market, also
know by the term FX) is relatively unknown which is
surprising because it is the largest financial market in
the world and sees approximately 1.9 trillion US dollars
worth of trade on an average day.
Everyone has heard of stocks and shares, probably even the
futures market, but trading the FOREX market is a
relatively new phenomenon.
Until de-regulation in 1997, the FOREX was the domain of
the banking fraternity and the elite in financial and
business circles, but now with as little as $300 any
individual can open an account and trade on the FOREX.
Foreign currency trading is such a lucrative and easy to
understand market that many who used to trade stocks,
bonds, commodities and futures have switched to trading
nothing but FOREX. More and more astute internet
entrepreneurs are shunning the traditional financial
markets and turning to FOREX trading.
Even Bill Gates and the world renowned trader Warren Buffet
now trade currencies as part of their overall strategies.
As currency markets are some of the most volatile markets,
many fundamental variables such as weather and war affect
the price of the currency. However, since there is no
single apparent reason much of the time for price movement,
the fundamentals get discounted and one can use an almost
purely technical approach to trading. This is why the
FOREX is considered one of the most predictable trending
markets that follows technical analysis methods more than
any other market. These price movements are highly
predictable, creating trends that can be anticipated when
it comes to decide when to buy and sell.
With real estate, the prices must go up in order to make a
capital gain. With the stock market, traders need stock
prices to rise in order to take a profit. Unlike real
estate or the stock market, which relies on property value
or shares increasing in price to create profit, money can
be made both on a rising and falling FOREX market.
The FOREX is the best trending market as it keeps moving in
the same direction (this can be UP or DOWN) over 78% of the
time. You can sell a currency (go short) just as easy as
you can buy a currency (go long). Currencies go up and
down and you can trade either direction just as easily
ensuring there is always plenty of trading opportunities.
It is possible to strategically plan your market entry and
exit levels and control exactly how much you profit or
lose. Investors can even make a profit when they misjudge
the market 50% of the time! Compare that to other types of
investments.
The FOREX market is also the most liquid market in the
world. Many other forms of investing require tying your
money up for long periods of time, and if you need to use
the capital it can be difficult or impossible to access to
it without taking a huge loss. Not so with FOREX trading,
you have full control of your capital.
Entry orders are instant. There is no lag time in placing
an order. Orders are processed instantly at the current
market price, or the price at which you set the order to
enter the market in the future.
All done electronically and considered an over-the-counter
(OTC) market, FOREX trading is far easier and less risky
than either the futures or the stock markets and far more
liquid than the futures markets.
Quite easily, the foreign exchange market dwarfs the stock
market of any country. To illustrate, this is 30 times
larger than all the US stock markets combined.
Currency brokers usually give their traders 100:1 leverage,
meaning that if there is $1000 in ones account, they will
let one control $100,000, which allows currency traders to
reap large gains from relatively small price movements in
the market.
In the FOREX market, you pay NO commissions and NO exchange
fees. This can add up to quite a significant overhead in
other financial markets. Even when you use discount
brokers, those fees add up. With the FOREX, since you deal
directly with the market maker via a purely electronic
online exchange, you eliminate both ticket costs and
middleman brokerage fees. There is still a cost to
initiating any trade, but the broker just takes a small
difference between the bid price and the ask price as its
fee for the transaction of a currency pair. Since the
FOREX market is very liquid, the spread between the bid/ask
is very small. In the FOREX market, you also do not have
to worry about having a large sum of money in your account
to sell your currency pairs. As a trader gains experience,
a full service paid broker is no longer necessary.
On another note, in the stock trading world, you are
flagged if you are deemed to be a day-trader. In other
words, if a trader of stocks chooses to trade every day, he
or she must have an account balance of 50,000 dollars to do
so. There are no such restrictions when it comes to
trading the FOREX. If you work at night, you may trade in
the daytime. For those that have jobs during the day, the
FOREX market is much more accessible as trading can be done
at night or early in the morning before going to work..
You simply trade according to the schedule that works best
for you. As there is no central exchange and because it is
a world market FOREX can be traded 24 hours a day so it
need not get in the way of your other business interests or
social life.
Another advantage that the FOREX market has over stocks is
the advantage of trading focus; instead of having to choose
between over 4,000 stocks you can deal with 7 main currency
pairs. Any good business person knows that focussing on too
many things is a recipe for financial disaster and this can
hold equally true in the stock market. A stock trader also
must grapple with the time issue doing research on all
those potential stocks presents. It is also much easier to
become familiar with 7 areas as opposed to 4,000. Focus is
the name of the game.
So, where is the foreign currency market located? Well,
unlike the stock exchanges of the world, the foreign
currency market is a virtual market that is connected by
the internet, phones and fax.
Most brokers offer a free demo version of their live
software, easily downloaded and installed.
The wonderful thing about these programs are that they work
exactly like the real versions, with buy/sell capability;
real-time charting with data updates; several dozen
indicators; live price feed or a minimal 10 second delay;
a realistic $50,000 account with active profit and loss;
open, pending and closed trades; and actual stop, limit and
market trades. No account deposit is needed. Traders can
practice trading tactics until confident and successful
before they even part with a cent of their own money.
Unlike learning how to invest in the stock market, for
example, where you have to pretend that someone will sell
to you and that someone will buy from you ~ and that is not
real at all, the FOREX market is so liquid (instant buyers
and sellers) that both the demo and real accounts behave
exactly the same! What a great way to learn ~ when you
switch to a real account, you can't even tell.
You can practice, using various proven techniques, with
your demo account until you feel comfortable that you are
consistently making profits.
Once you feel that you have been obtaining consistent
trading results, you can start trading on the FOREX for as
little as $300 dollars. There are two types of real
accounts, a mini FOREX trading account and regular FOREX
trading account. Most FOREX Brokers offer 100:1 leverage
which means a in a mini account you can control $10,000
currency position with $100. In a regular account $1000
controls a $100,000 currency position. This provides great
leverage and an extremely efficient use of trading capitol.
Get ready for a life-changing adventure! Once you get a
taste of making money by sitting in front of your computer
monitor, there is no turning back. But the best part is,
it can be fun and get you more involved in your own
financial portfolio.
Happy Trading,
Monique Briand
For a free course covering everything from FOREX
terminology to how and where to set up a free demo account
where you can practice to setting up your own real mini-
account to how to turn $300 into $30,000 in as little as 6
months, just visit the FOREX Training Centre at:
http://www.ForexTrainingCentre.com
Submit An Article
|
|  |
