dhanpreet Posted October 22, 2010 Share Posted October 22, 2010 My purpose for writing this article is to demonstrate to you the advantages of trading on the Forex market. However, there is one myth that I want to dispel before I go further. The myth is that there is a difference between trading and investing. To dispel that myth I quote from Al Thomas, President of Williamsburg Investment Company, who wrote "If It Doesn't Go Up, Don't Buy It". He said "Everyone who invests is a trader, only the time period is different." It is a lesson that I took seriously after taking a beating in the stock market in 2000. So now, let's compare features of currency trading to those of stock and commodity trading. Liquidity — The Forex market is the most liquid financial market in the world around 1.9 trillion dollars traded everyday. The commodities market trades around 440 billion dollars a day, and the US stock market trades around 200 billion dollars a day. This ensures better trade execution and prevents market manipulation. It also ensures easily executable trading. Trading Times — The Forex market is open 24 hours a day (except weekends) which means that in the US it opens at 3:00 pm Sunday (EST) and closes Friday at 5:00 (EST), allowing active traders to choose the times they want to trade. Commodities trading hours are all over the board depending on which commodity you are trading. Including extended trading times US stocks can be traded from 8:30 am to 6:30 pm (ET) on weekdays. Leverage — Depending on your Forex account size, your leverage may be 100:1, although there are Forex brokers that offer leverage of up to 400:1 (not that I would ever recommend that kind of leverage). Leverage in the stock market can be as high as 4:1, and in the commodities market, leverage varies with the commodity traded but it can be quite high. Because the commodity markets are not as liquid as the Forex market, its leverage is inherently riskier. Although I was never 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 market is the difference between the buy and sell price of each currency pair. There are no brokerage fees. For both the stock and the commodity markets, there are transaction costs and brokerage fees. Even when you use discount brokers, those fees add up. Minimum investment — You can open a Forex trading account for as little as $300.00. It took $5,000 for me to open my futures trading account. Focus — 85% of all trading transactions are made on 7 major currencies. In the US stock market alone there are 40,000 stocks. There are just over 200 commodity markets, although quite a few are so illiquid that they are not traded except by hedgers. As you can see, the fewer number of instruments allows us to study each one more closely. Trade execution — In the Forex market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent. While all of these features make trading the Forex market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky. Quote Link to comment Share on other sites More sharing options...
omarelalfy Posted October 27, 2010 Share Posted October 27, 2010 Trade execution — In the Forex market, trade execution is almost instantaneous. In both the equity and commodity markets, you count on a broker to execute your trades and their results are sometimes inconsistent. While all of these features make trading the Forex market very attractive, it still requires a lot of education, discipline, commitment and patience. All trading can be risky. Quote Link to comment Share on other sites More sharing options...
ellliottt Posted December 24, 2010 Share Posted December 24, 2010 The Forex market is booming in popularity worldwide. Traders are abandoning the traditional stock and future markets and moving to Forex in surprising numbers. Just what is the attraction and is the Forex market right for you? This article will seek to answer this question by systematically laying out both the advantageous and disadvantageous of the world's largest financial market Quote Link to comment Share on other sites More sharing options...
boniez Posted January 23, 2011 Share Posted January 23, 2011 firstly i trade in the forex causes i wanna get rich quickly, but its turned out that quite difficult actually,,, i've been trade about 4 and 5 month ago , but never withdraw anything Quote Link to comment Share on other sites More sharing options...
Vaabum Posted August 28, 2022 Share Posted August 28, 2022 I think the answer is quite obvious. Traders want to make a profit, and at the same time - not to work hard. But it is important to understand that trading requires preparation! Quote Link to comment Share on other sites More sharing options...
nanamage Posted October 14, 2023 Share Posted October 14, 2023 I trade with FreshForex because there's no minimum deposit required for any FreshForex account. FreshForex offers numerous opportunities to ensure transactions and generate additional profits. So far, there have been many conveniences and advantages gained while trading with FreshForex. Quote Link to comment Share on other sites More sharing options...
radex78 Posted October 18, 2023 Share Posted October 18, 2023 There are pros and cons to trading in the forex market, many traders choose forex as home based business because they don't need to hire an office room because traders can work from home, this of course it saves money because don't need transportation fees, and another fee, however the risk forex trading is losing money because can't work well in trading due lack of skill and knowledge, traders also need plan B because trading forex is risky. Quote Link to comment Share on other sites More sharing options...
nanamage Posted November 12, 2023 Share Posted November 12, 2023 People trade forex for various reasons, including the potential for profit through currency price fluctuations, portfolio diversification, and speculation on economic and geopolitical events. The forex market operates 24/5, providing flexibility for traders to engage at different times. Additionally, the high liquidity of the forex market allows for easier entry and exit from trades. However, it's essential to note that forex trading carries risks, and individuals should thoroughly understand the market and develop sound strategies before participating. And always be careful when picking a broker, don't fall for shady broker schemes like the case of the scam carried out by the crazy rich guy from Surabaya, Wahyu Kenzo. He got caught up in fraud and violating ITE laws regarding the Auto Trade Gold (ATG) trading robot. Wahyu allegedly made around IDR 9 trillion from scamming people with the ATG trading robot.The victims amounted to 25 thousand people, and it's not just in Indonesia, it even reached overseas. Wahyu lured ATG members by promising profits of up to IDR 40 million with just an internet connection and a smartphone. Quote Link to comment Share on other sites More sharing options...
radex78 Posted November 15, 2023 Share Posted November 15, 2023 Forex trading provides unlimited profit potential, all traders who join forex expect to get trading profits on their investments. Some of the advantages of forex, the market is open 24/5 days a week, can be done from home with just a computer and internet connection, and can start with low capital even at FXOpen Int only a minimum of $10, but traders also realize that forex trading is a high-risk activity, the trader may lose half the money or all the money from his investment Quote Link to comment Share on other sites More sharing options...
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