There are many many advantages over the various other ways of
investing
. First of all it is a 24 hr market, except for weekends of
course. You have the US market then the european and then the Asian. One
of the great times to trade is during the over lapping periods. The USA
and european overlap between 5am & 9am eastern and the Euro &
Asian between 11pm & 1am eastern. Usually the busiest time and best
to trade.
The is also the risk factor for the accounts. With futures and
options you can get margin calls that can wipe you out. If you get
caught in a bad trade not only do you lose the money in the account but
you may have to come up with alot more from your pocket. It can be very
risking. But not in Forex. Worst case senerio you could lose whats in
you account. But you would have to do something really stupid. Like
making a big trade on a Fundamental day and leave it alone. If market
takes a bad move and you weren't there. OOOPS. But That wouldn't happen
with a smarth trader.
Then there are the demo accounts which is an account where you
can trade using all the right things, platform,charts,and information.
But you are using play money, or what we call paper trading too.
Plus with Forex you have a mini account. Instead of needing
thousands of dollars to get into it. You can open an account with as
little as $300.00. Now of course you will be trading at 1 tenth of a
trade. IN other words you controling 10,000 instead of 100,000.00 These
are call lots. Which also means you will only risk 1 tenth too!
So if you would love to learn to do investing and not have near
the risk you really need to take a closer look at Forex trading.
by Mike Pachuta
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