Trade Forex For A Living
Finance → Stocks, Bond & Forex
- Author George Patterson
- Published February 20, 2010
- Word count 863
Forex Trading is fast-becoming a very popular investment alternative for investors all over the world. With a daily turnover volume of close to 4 trillion dollars, the forex market has often been described as the market closest to the ideal perfect competition. The amount of forex trading all over the world is hard to manipulate mainly due to this sheer size in transaction volume. Notwithstanding the occasional intervention of some Central Banks, market forces generally have the ultimate verdict as to how the different currencies would move.
With the advent of the Internet, forex trading has made a tremendous leap in its popularity. What used to be just the domain of the big financial institutions and wealthy individuals with access to sophisticated financial instruments, forex trading has now become a very popular and convenient choice for common individuals. People looking for more return for their money than the usual investment instruments offered by their banks are lured by forex trading as an investment choice because they can practically do all of the transactions needed at the convenience of their own bedrooms. From the initial deposit, to the daily transaction orders, to the withdrawal of funds – all of these can be done thru the power of the PC with an Internet connection.
And with the power of leverage, forex trading allows investors to multiply the power of their capital a hundred times fold. Some brokers do even offer up to 1:400 leverage. This power of leverage in forex trading, however, is a double-edged sword. It can multiply an investor’s account in only such a short span of time. But it can also wipe out an account in the same amount of time. Caution and a disciplined capital management are necessary when trading the forex market.
Some investors even choose to do their forex trading automatically thru the use of robots or Expert Advisors (EA’s). These are computer programs or procedures which take mechanical decisions based on a set of rules that has been pre-defined. Trading thru the use of these robots takes away the emotional factor which could hinder sound financial decisions when trading. And it is also possible to do tests to assess how the robot performed based on historical data. Of course, as with any other investment, historical performance is not a guarantee that the same profitability shall be duplicated in the future.
The forex market is practically more than a 24 x 5 market. It opens at Sunday afternoon (PST) and ends Friday night (PST). The Asian market begins the trading day, overlapped by the European market, and again overlapped by the US market. This means that trading transactions can be ordered at any time during the trading week, either night or day. And this also means that market opportunities are practically endless depending on which type of market volatility the investor prefers with his type of trading.
Short-selling is allowed in forex trading which effectively doubles the trading opportunities when compared to the equities market where the only way for an investor to earn a profit is when the price of an equity rises. With forex trading, short selling allows the investor to profit even if a particular currency is dropping in its value. So, either way that the market goes, whether up or down, there is always opportunity to make money.
And lastly, forex trading allows an investor to concentrate on just the currencies that he wishes to trade and specialize at. Again, when compared to the equities market, this is a very big convenience as the investor does not have to monitor various companies and study numerous financial statements in order to analyze an company’s performance. Studying two countries’ economic data and monitoring their political stability are a lot easier than waiting for news even for just blue chip stocks in the equitoes market. A country’s economic data are released based on schedule. And reliable figures on economists’ expectations are freely available in the internet so that when the economic figures are released, an investor, ideally, has already prepared a plan based on these market expectations.
Making a profit in forex trading can be real easy. Technically, with the various options available just thru the internet (like robots, EA’s, signal providers, and fund managers), an investor does not really have to need an economics or business degree to be able to make a killing in this kind of an investment. Just search the net for the best strategy available and see which one fits the investor’s personality. Investing in forex trading has never been so easy and accessible. And making huge amounts of profits that can multiply an investor’s capital in a short amount of time is a very real probability.
Realize why forex as an investment has become so popular in the past few years. Reap the rewards of the new kind of investment opportunities available to those who are open to non-traditional forms of investments. The world is changing. And it is changing fast. Do not be left behind. These same advices are also applicable to our investment perspectives. And making money has been revolutionized by forex trading. Join the revolution. Invest now.
An economist by training, and an entrepreneur by profession. Rediscovered his passion for writing with the advent of blogging, and has been writing out his thoughts in a myriad of subjects ever since. Has been trading forex full-time for a living for the past 7 years. Visit his site at http://investinforexonline.com.
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