Investing in Forex - Why Trade Forex?
Investing in Forex is relatively new compared to stocks and commodities, especially for the retail investor. Retail investors are the "little guys" like you and me. For a long time, only industries, banks, governments and extremely wealthy people were the only investors in this potential gold rush. Many people are still unaware that his market even exists, and even more don't have an understanding of how to invest in Forex successfully.
Trading Forex (or foreign currency) can be one of the most lucrative investment market vehicles in existence. Successful Forex traders can make 100% profit or more each month. Compare this to some of the "standard" investments such as stocks. A well performing stock or stock portfolio can earn you something around 12-50% per year. Imagine being able to earn that return each month.
Another huge benefit to Forex Trading is that you have the potential to profit regardless of direction of the market. Stocks and commodities generally place restrictions on "selling short", or taking a short position. Forex has no such restrictions and you can trade either long or short as much as you desire. Since the Forex market produces many up trends and down trends, even within a single day, the potential for finding profitable trades is unmatched by any other investment...period.
Forex also allows trading anytime, day or night, all week long, with the exception of the weekend. I won't get into details in this article, but you can trade the forex market from Sunday evening US EST, until Friday evening US EST. The market never closes like the stock exchange, or commodities.
Does anyone make money trading Forex? Yes. There are many successful Forex traders that earn that, and much more. But a person that invests in Forex must be extremely disciplined, and learn the market and how to trade it. The primary difference between a successful Forex trader and one who loses his money in the Forex market is education and discipline.
But how do successful traders realize such amazing gains? One of key benefits to Forex Trading is the powerful leverage that Forex provides. Stocks and commodities generally may be able to leverage up to 50%, or a 2:1 ratio. Forex trading typically offers leverage of 100:1 or 200:1. There are some Forex brokers that even offer leverage as high as 500:1. Granted, I'm not saying you should use such high leverage trading Forex. There is no need to do so, and the risk is exponentially increased as well as the potential rewards. 100:1 leverage is more than satisfactory for most Forex traders. Some brokers will allow you to open an account and start trading with as little as $100, and at 100:1 leverage you could control $10,000 worth of currency. However, I would recommend opening an account with at least $1,000, if you intend on trading a mini-account. In addition, evaluating a Forex method is a key to successfully trading. You need a good trading method in order to be successful. Visit Forex Robot Busters for more information or visit us at Best Forex Trading Signals to see what 50% monthly returns can do for you.
These are just a few of the advantages of Forex trading. If you've never looked into trading Forex, it would be well worth your time to check it out.