Forex is the
largest market in the world, and for several years has met with undeniable
success with private traders, traders who pursue their careers independently
from home with their personal account.
And if so
many of them are turning to forex, it is because the advantages of the forex
market are numerous and major, especially for traders who are not hired by
banks in trading rooms.
Forex is open 24 hours a day
Unlike the
stock market, forex is a market open 24 hours a day, from Sunday evening to
Friday evening.
This means
that you can trade absolutely when you want to, which comes in very handy if
your schedule is busy.
This is
indeed a major advantage, since you can thus start to gain experience in forex
while continuing to carry out a traditional professional activity, to perhaps
switch to full-time trading when you are ready.
Forex is a no-cost market
Forex
trading is virtually free. Brokers generally do not charge any fees.
In forex,
there are no brokerage fees, custody fees, account management fees or anything.
The broker's
remuneration comes from the "spread", the difference between the sale
price and the purchase price of a currency at that particular time.
However,
some brokers charge commissions on the volume of your operations, but this type
of broker offers very low spreads, or even zero, which amounts to the same if
we do the calculation (or even prove to be more interesting).
Forex is a market with many
opportunities
There is
always a good forex trading opportunity. Indeed, the leverage effect offered by
brokers makes it possible to earn a lot of money on very small variations,
which increases the possibilities of gains.
Moreover, it
is quite rare for a currency pair to move without a trend for an extended
period of time, especially when it comes to EUR / USD.
And if you
trade currency pairs other than EUR / USD, you can be sure that you have great
opportunities every day and hour.
Forex is a market free from
manipulation
Forex is
also the biggest market in the world. Over $ 4 trillion is traded every day on
the forex market.
With such a
volume, it therefore becomes difficult to manipulate prices, even with
positions of several million dollars, unlike the stock markets, which are often
manipulated by professionals.
The only
economic players capable of really influencing Forex are central banks, and
trading floor traders who work for banks are no more informed than the average
trader who works at home with regard to central bank action. , unlike what
happens on the equity markets, where success often depends on your ability to
have the right contacts, and the right inside information ...
Forex is a "trap-free"
market
Often, when
we practice trading on shares, we realize that a good analysis has been
invalidated by the words of an executive, or by the signing of a particular
contract, which impacts the price of the stock in which we are interested.
In forex,
there is a precise and planned schedule in advance of publications and
statements that could influence currencies (economic calendars). You can
therefore, thanks to the economic calendars, know when an important statistic
is going to be published, and thus avoid unpleasant surprises.
It should
also be noted that the results of the statistics are available at the same
time, for everyone, professionals or individuals. All you need is a good source
of information.
We are
certainly not immune to surprise and influential statements from a central bank
boss or a politician, but here again, by being quickly informed, the damage can
be avoided.
The forex makes it possible to win on
the upswings as easily as on the downs
The forex
market allows you to bet on the rise or fall of a currency. It is of course
also possible to do it on the stock market, but not on all stocks, and
sometimes only through obscure “derivatives”.
Also, in
times of crisis, short selling is often prohibited on stocks.
In forex,
the only difference between betting on a downside and betting on a rise is that
you have to click sell instead of buy, and you win if it goes down, instead of
winning if it goes up.
In our next
lesson, we will look at the different
types of forex market analysis. Don't forget to subscribe to our telegram channel so you get notified on our new posts and to download unlimited trading tools.
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