What are the advantages of Forex over other types of investment?
LOW RISK – HIGH RETURN is the first thing that comes to mind.
Forex Trading can be risky and the general rule for investing is this: When the return is high, the risk is high, but by combining the right planning and strategy with a certain amount of self-discipline you can reduce the risk factor to a fairly low level. It is even possible to strategically plan your entry and exit levels and control exactly how much profit or loss you will make.
This can be done in a way that allows the trader to profit even when they misjudge the market 50% of the time! Compare this with other types of investments.
GEARING is another area that stands out as a huge advantage; this also significantly reduces the risk for you as a trader. When you trade 1 forex “A mini lot” you will trade a parcel of money worth 10,000 USD
And you only need 100 USD of your own money!
If you are trading with a regular “Lot”, you only need 1,000 USD to trade 100,000 USD.
How’s that for gearing? Try doing this with other types of investments!
LOW CAPITAL REQUIRES, many investments require a significant amount of capital before you can take advantage of a particular investment opportunity, with Forex you only need 300 USD to “enter the market” and you only need 100 USD to trade your $10,000 “Mini Lot”.
ATTENTION, if you have a laptop and an internet connection you can trade in 5-10 minutes! Depending on how long it takes your computer to boot up and the speed of your connection.
LIQUIDITY, many other forms of investment require tying up your money for long periods and if you need to use the capital, it can be difficult or impossible to access it without taking a big loss (Real Estate).
This is not the case with Forex trading. With Forex Trading you have full control over your capital.
YOU CAN PROFIT IN BULLISH OR BEARISH MARKETS,
Stock market traders need stock prices to rise to make a profit, while Real Estate prices need to rise to make capital gains.
However, the Forex trader can make a profit in either case, in a rising or falling market.
The Forex Market is open 24 hours a day.
Can anyone do it or do you need to be some kind of super genius?
Forex Trading is not for the faint-hearted, so you can get yourself a “Demo Account” and practice while you learn in real-time on the real market.
You can’t experience the emotions that come with putting your real money on the line.
However, you can prepare yourself well by taking one of the many Forex Trading courses available online today.