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Many people ask me why I trade Forex, Well, I think like most people when I was introduced to Trading I didn’t know about the Forex market. It was natural that I would look into the stock market to trade. However, I found that my trading was very limited, by the time I got home from work in the evening all the action was over. I moved into Forex mainly to take advantage of the 24-hour opening hours, I was often found at my computer in the middle of the night waiting for the next bar to appear.
Unlike Futures, there are no trading exchanges as such. Trading is done from the major banking establishments around the world, With Futures, you are usually limited to only trading for a few hours that they are open, if big news breaks and the price starts going against you when the market is closed, you can end up losing a lot of time while you are forced to wait for the market to open. With Forex you will always have an opportunity to trade 24 hours a day 5 days a week. As the sun wakes up each country on its journey, it also wakes up the markets in New York, London, Europe, Asia, and Australia, to name a few.
The world’s currencies are traded against each other, the most popular being the Euro the US and Australian dollars, the British pound, the Swiss franc, and the Japanese yen.
Due to 24-hour trading, it is rare to see large price differences like stocks have at the opening, and it is frequent to see prices in currencies trending higher than stocks.
There are many advantages to trading Forex instead of Stocks, the expensive data providers you need with Stocks are traded for free charting software offered by many Forex brokers. With over $1.5trillion (this is 46 times more than all futures markets combined!) being traded in a single day, you are always assured of a trade, With low transaction costs, no commissions or exchange fees it is no wonder that more and more traders are turning to Forex.
But beware, even with all these advantages, trading is a high-risk game and should only be traded with money you can afford to lose. With a good Trading Strategy and Money Management in place, there is no reason not to join the many traders who profit from trading the Forex markets.
