There are several different ways to trade but these days it seems everyone is talking about Forex and currency trading. Check out these three reasons why it beats stock trading.
Profits in a Bear or Bull Market
Currency can bring growth during both a bull and bear market which is one of the three reasons why it beats stock trading. There is no short selling restrictions and there is profit potential no matter where the market is going. With Forex you sell on currency and then buy another. Even in fluctuating markets a trader has the ability to profit in both short and long positions.
50 Times More Leverage Than Stocks
It quickly becomes apparent why you want to go with currency trading over stock trading another reason why it beats stock trading. Foreign exchange trading with Forex will land you up to 50 times the leverage of what your stock accounts can do.
Diversity Here Is Like No Other
Forex can offer a broad diversity. The balance of trade between nations is detrimental to the value of the currencies. If a nation imports more than it exports it will have a deficit trade balance which is considered not favorable to currency value. So you see currency trading beats stock trading.
A prudent investor will know that they need to diversify their US dollar balance through holding a variety of currencies which can be somewhat challenging since almost all US banks offer only a few other currencies. Through Forex and foreign currency trading you can control hundreds of thousand of dollars worth of currencies that will give you more than 50 times the leverage of the stock market which again proves why the currency trading beats stock trading.
Open For Business 24 Hours A Day 7 Days A Week
You can trade Forex 24 hours a day 365 days a year. Your trading can start at 5:00 PM EST with markets in Sidney and Singapore. Only a few hours later Tokyo opens up, next is London opening at 2:00 AM EST and soon New York with it’s world currency markets have already been open for 15 hours. The stock market offers you no such easy access which is why currency trading beats stock trading. In fact Forex is the largest, most liquid market, open 24 hours a day for trade.
You’ve got 3 reasons why currency trading beats stock trading but there are plenty of others.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
By: Joel Teo
Friday, December 5, 2008
Foreign Currency Trading – How To Make Money With Forex Trading
Topic on how to make money with Forex trading. FOREX stands for FOReign Exchange market and it refers to the international currency market where currencies are purchased and sold.
Forex is one of the most promising and rewarding investments around and learning how to make money with Forex trading is easy. Of course there is risk and because you can trade marginally it is how to make money with Forex trading with the potential of making huge profits. One benefit is the inability of investors to influence the market for their own gain. As a short term investor you will need some patience and diligence. Technical analysis and strategies should be part of your investment plan.
When you learn how to make money with Forex trading in foreign currency you can trade 24 hours a day in just about every part of the world because you will find a dealer ready to quote on a currency. After you decide what currency you want to invest in you buy online either through a dealer or through your own Forex trading account and that’s how to make money with Forex trading.
Marginal trading is used for trading with borrowed capital which is common practice when learning how to make money with Forex trading. That’s one of the reasons for its appeal. You can invest without having the real money to back it. That means you can make much bigger investments quicker and cheaper.
Make sure that you have some investment strategies under your belt and by then you’ll know how to make money with Forex trading. You should understand both fundamental analysis and technical analysis. The investor doesn’t try to outsmart the market instead they learn how to make money with Forex trading.
Fundamental analysis analyzes the country where the currency is from, the economy, political stability, and other related issues. These are all contributing factors that are used to analyze the currency and fluctuations that might occur.
Now that you have the basics on how to make money with Forex trading you’re ready to take the next step. If you still aren’t comfortable enough to invest there are plenty of online courses to help improve your skills. What are you waiting for – now is the time to start making your wealth.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
By: Joel Teo
Forex is one of the most promising and rewarding investments around and learning how to make money with Forex trading is easy. Of course there is risk and because you can trade marginally it is how to make money with Forex trading with the potential of making huge profits. One benefit is the inability of investors to influence the market for their own gain. As a short term investor you will need some patience and diligence. Technical analysis and strategies should be part of your investment plan.
When you learn how to make money with Forex trading in foreign currency you can trade 24 hours a day in just about every part of the world because you will find a dealer ready to quote on a currency. After you decide what currency you want to invest in you buy online either through a dealer or through your own Forex trading account and that’s how to make money with Forex trading.
Marginal trading is used for trading with borrowed capital which is common practice when learning how to make money with Forex trading. That’s one of the reasons for its appeal. You can invest without having the real money to back it. That means you can make much bigger investments quicker and cheaper.
Make sure that you have some investment strategies under your belt and by then you’ll know how to make money with Forex trading. You should understand both fundamental analysis and technical analysis. The investor doesn’t try to outsmart the market instead they learn how to make money with Forex trading.
Fundamental analysis analyzes the country where the currency is from, the economy, political stability, and other related issues. These are all contributing factors that are used to analyze the currency and fluctuations that might occur.
Now that you have the basics on how to make money with Forex trading you’re ready to take the next step. If you still aren’t comfortable enough to invest there are plenty of online courses to help improve your skills. What are you waiting for – now is the time to start making your wealth.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)
By: Joel Teo
Forex Trading: Calculating Profit And Loss In Foreign Currency Trading
The foreign exchange market, or Forex market, is an around-the-clock cash market where the currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with U.S. Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your Forex investment increases or decreases because of changes in the currency exchange rate or Forex rate. These changes can occur at any time, and often result from economic and political events. Using a hypothetical Forex investment, this article shows you how to calculate profit and loss in Forex trading.
To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the U.S. Dollar (USD) and the Canadian Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S. Dollar is equal to 170.50 Canadian Dollars. The currency to the left of the "/" (USD in this example) is referred to as base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one USD can buy 170.50 CAD, because it is the stronger of the two currencies. The U.S. Dollar is regarded as the central currency of the Forex market, and it is always treated as the base currency in any Forex quote where it is one of the pairs.
Let's go now to our hypothetical Forex investment to show how you can profit or come up short in Forex trading. In this example, your pair of currencies are the U.S. Dollar and the Euro. The Forex rate of EUR/USD on August 26, 2003 was 1.0857, which means that one U.S. Dollar was equal to 1.0857 Euros, and was the weaker of the two currencies. If you had bought 1,000 Euros on that date, you would have paid $1,085.70.
One year later, the Forex rate of EUR/USD was 1.2083, which means that the value of the Euro increased in relation to the USD. If you had sold the 1,000 Euros one year later, you would have received $1,208.30, which is $122.60 more than what you had started with one year earlier.
Conversely, if the Forex rate one year later had been EUR/USD = 1.0576, the value of the Euro would have weakened in relation to the U.S. Dollar. If you had sold the 1,000 Euros at this Forex rate, you would have received $1,057.60, which is $28.10 less than what you had started out with one year earlier.
As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return. To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.
By: Gregory DeVictor
To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the U.S. Dollar (USD) and the Canadian Dollar (CAD). The Forex quote, USD/CAD = 170.50, means that one U.S. Dollar is equal to 170.50 Canadian Dollars. The currency to the left of the "/" (USD in this example) is referred to as base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one USD can buy 170.50 CAD, because it is the stronger of the two currencies. The U.S. Dollar is regarded as the central currency of the Forex market, and it is always treated as the base currency in any Forex quote where it is one of the pairs.
Let's go now to our hypothetical Forex investment to show how you can profit or come up short in Forex trading. In this example, your pair of currencies are the U.S. Dollar and the Euro. The Forex rate of EUR/USD on August 26, 2003 was 1.0857, which means that one U.S. Dollar was equal to 1.0857 Euros, and was the weaker of the two currencies. If you had bought 1,000 Euros on that date, you would have paid $1,085.70.
One year later, the Forex rate of EUR/USD was 1.2083, which means that the value of the Euro increased in relation to the USD. If you had sold the 1,000 Euros one year later, you would have received $1,208.30, which is $122.60 more than what you had started with one year earlier.
Conversely, if the Forex rate one year later had been EUR/USD = 1.0576, the value of the Euro would have weakened in relation to the U.S. Dollar. If you had sold the 1,000 Euros at this Forex rate, you would have received $1,057.60, which is $28.10 less than what you had started out with one year earlier.
As with stocks and mutual funds, there is risk in Forex trading. The risk results from fluctuations in the currency exchange market. Investments with a low level of risk (for example, long-term government bonds) often have a low return. Investments with a higher level of risk (for example, Forex trading) can have a higher return. To achieve your short-term and long-term financial goals, you need to balance security and risk to the comfort level that works best for you.
By: Gregory DeVictor
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