Why Trade Forex

Article by: http://fxsignalsapp.com

The currency markets or Forex are not the only tradable market out there. There are a whole lot of other markets like the equities market (also known as stocks) commodities or futures and also the options market. So you might want to ask “why trade forex”?

There are quite a lot of reasons why trading Forex is a sensible decision for anyone even if they have little or no prior forex trading experience. This article will see to present some cogent reasons for venturing into forex trading.

Contrary to popular belief, traders can actually start trading in the Forex market with very little start-up capital.  Most people have the impression that you need to have lots of money in your bank account to make trading forex worthwhile. However, this is not true. Unlike other financial instruments, you can actually start off with as little as $100. With a good strategy and money management skills that $100 could easily be turned into a decent extra income stream.

Forex is a huge market with a high liquidity. There are literally trillions of dollars being traded every day. Investors do not have to worry about trying to sell if the currency goes down, unlike equities and other financial instruments. In the forex trading, the market cannot be manipulated by a single trader.

Brokers offer great leverage for investors to trade with, in the Forex market. This means that investors with small capital are also offered a chance to give trading a fair shot. The normal leverage offered by most brokers is around 100. This simple means that an investor with $100 will be allowed to trade $10000.

The forex market gives new investors the opportunity to demo trade. This means that new traders can learn the intricate strategies and techniques in the market without risking any real money. An investor who has become proficient in demo trading can then start trading with real money.

Regardless of the state of the economy, you can always make money. Forex traders can make money even when the economy is in a recession. Unlike stock which is pretty hard to profit from during recessions, investors can profit no matter which way the market goes.

The Forex market allows traders to execute trades instantly. With online platforms, investors can execute their trades with speed. Once a buy or sell order is submitted, the trade will be approved within seconds. Also, most brokers offer syndicated news and charting packages in an easy to access format on their platform. So investors have all the tools to start trading and making money instantly.

Today, Forex has become even a lot easier to trade. There are automated systems and Forex Signals that you can buy or acquire for free which traders can trade with without the need to have any trading experience. Forex robot can trade automatically with very little input from the trader. Though it always pays to learn as much as possible, however, Forex robots and software shortens the learning curve significantly.

The Forex market is open 24 hours of every day. This simply means there are lots of opportunities for investors to make money. For instance, traders who hold day jobs can always find time to trade in the evening or night when they return from work. Similarly, a housewife who tends to be occupied in the late afternoon and evening when her children or family are back from school or work can choose to trade in the morning. There are also the full-time traders who can trade 24 hours every day.

Now some folks might wonder, “is Forex suitable for me?”

Well, the Forex market is a high-risk environment.  Movement can be fast and furious. Rumors or news react quickly in the Forex market. This may put a lot of stress on an investor. Also with leveraged trading, losses and profits become magnified. Without a proper strategy and risk management, traders risk losing money. Therefore a lot of discipline and hard work is required to be successful in the Forex market.