CySEC ASIC FSA-Seychelles
C.B.I, B.V.I, ASIC, FSCA, ADGM
Reasons to Trade Using Forex
People even when they are hard working and skilled do not usually enjoy income that caters to all their aspirations. There is always a need for a bit extra to enjoy the antiquities of life. For such people there is an earning opportunity that does not require any prior experience to get started and can be availed anywhere and at anytime – Forex.
Advantages of Forex that tempt investors to it:
- The market is always open for trade. It is an electronic currency exchange market with investors from all over the world from different time zones. So there isn’t a need to allot special timings in order to trade, the trader can trade whenever he has spare time.
- Forex appreciates optimum utilization of trading capital due to its high leverages. A trader can control trading capital of up to 200 times his investment.
- The technical analysis of the market makes the traders aware of the trends followed by the currency pairs by comparing the present graphs with the previous patterns. There is a high chance of repetition of patterns and hence equally high chance to make big gains using Forex.
- The traders are not charged with large mount of commissions and fees by most brokers. This means that most of the money that they earn as profits stays with them.
- If time permits Forex can empower traders with unlimited earning potential. The market is the most vibrant of all trading about 1.5 trillions per day dwarfing the achievements of all other asset markets. The trades do not depend on market conditions.
- Even if a currency is suffering a dip, you can earn big by investing on the currency pairs. All the above advantages make Forex the perfect money making activity with the surplus income you can spare.
Important Factors That Make a Successful Forex Trader
Forex trading has become very popular all over the world these days. Some traders have been successful and have made huge gains in an amazingly short period of time, though there are many who have experienced overwhelming losses, simply because they failed to tap the vital factors that are essential for becoming successful in forex trading. For succeeding in any profession a person has to consider a number of vital and important factors and forex trading is no different.
The Foreign Exchange market is the largest financial market in the world. The average market turnover is currently estimated above $4 trillion per day. The forex market provides a platform for exchange of currencies around the clock, allowing traders from across the globe to earn profits from market movements regardless of the time of day. The market induces immensely large volumes that allow for high levels of liquidity. In contrast to the equities and debt markets, currency trading functions through the implementation of increased leverage, which enables investors to yield large profits with relatively little capital at risk.“
- Forex trading is a zero sum game, and therefore there must be an identifiable edge over other market participants.
- Identifying an edge is useless if there is no discipline. Therefore, forex traders should create a plan, stick to it and then consider if the plan is successful. In case the plan is not successful, they should think about changing it. Therefore, most important factor is “disciplined execution” which should be the motto of every forex trader.
- In case the risk in a forex trade is too aggressive, then the risk of losing it and blowing away your account becomes considerable. However, if the trades are too conservative, then there is always the chance of missing the opportunity to optimize your returns.
- This is a very important factor because a trading plan will be useful to determine what should be done in a given situation during forex trading. A plan will help you to keep focused on proper execution and not get distracted easily.
- A forex trader must be dedicated and committed and place his or her trade according to the plan made earlier, even through the losing periods where every trade seems to end up a loser. During trading, there can be occasions for good times and bad periods.