Tuesday, May 14, 2013

My Talks about Forex Market

The Forex Market is primarily used for the facilitation of international trade and investment, which makes it an ideal medium for speculation. This speculation is what adds more versatile liquidity to the market, and trading this way has many benefits.

When I trade foreign currencies, I don’t dwell too much on my losses. Although these losses teach me some hard lessons, I have to move on and be positive that I’ll eventually have the right forex trading formula if I’m patient enough. I don’t do leveraging on my forex account because it works against me most of the time. As much as possible, I limit the risks by exposing only 5% of my total investment in the daily forex market trade. If I lose the allotted 5% in one day, I stop trading and look forward to the next day. I am optimistic that the day won’t be as bad as today. I only trade with a risk ratio of 1:2, which means I risk $200 for the $400 reward. With the help of forex signals, I have the confidence to invest in foreign currency trading. With my subscription to some of the best providers of forex signals, I am able to interact with professional and experienced forex traders who motivate me in my forex trading endeavors. If you’re up to it, you can subscribe to UFX Markets as well.

Minimum investment with high leverage - Another major advantage which makes this financial system accessible to almost everybody is the small capital required to begin trading. There are platforms that accept traders to enter from as little as $50-$100, which is not the case with other investments such as the stock exchange for example. Now, what I love here is the endless opportunities offered. The Forex industry in contrast with the stock market can offer even up to 100:1 - 1:100, leverage which maximizes the possibilities of significantly increasing your profits. Certainly if 'stop loss' is not applied chances of losing huge amounts is also a possibility. This technique will be discussed in coming articles, so stay tuned!

Simplicity - The currency pairs most often traded in Forex are rather limited, which allows investors to focus on certain particular currencies, thus gaining better knowledge and understanding of their trends. This of course is certainly not the case with the stock market, where there are literally thousands of stocks.

No intermediary - Entering the currency trading market, means eliminating all together the broker which acts as intermediary earning large sums of your money via high commission rates. The profit of the various platforms however derives from the so called 'spread' which is the difference between the buying and selling price.

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