| Forex Over Stocks? | | | | York market closes. During that time the market is |
| Why would one choose to trade the forex market | | | | open for trading 24 hours a day. When trading |
| over the stock market? There are several good | | | | currencies you get to decide when to trade, when it |
| reasons all of which have to do with making more | | | | is best for you. To trade stocks while the U.S. |
| profit more easily. | | | | markets are closed is difficult and the liquidity is |
| Eliminate the middleman | | | | limited. With forex, trading goes on 24 hours a day, |
| When trading stocks there is always a middleman | | | | starting on Sunday at 5P.M. EST and ending Friday at |
| involved with the transaction, usually taking a | | | | 5P.M EST. |
| considerable chunk of the profit for commission. By | | | | Measuring the currency market is less complicated |
| spot trading currencies you bypass the middleman. | | | | When researching stocks one must look at balance |
| With the explosion of effective online forex brokers | | | | sheets, past performance, the viability of the |
| in the last few years traders are able to enter the | | | | company in the future, market for the product the |
| forex market directly and trade currencies with a | | | | company offers, on and on, ad infinitum... |
| few clicks of their mouse leaving out the middleman | | | | In comparison there are two main factors that affect |
| and increasing their potential for profit. | | | | supply and demand in relation to currencies; interest |
| Much greater leverage than trading stocks | | | | rates and the overall economic state of the country |
| Your maximum leverage is 2:1 when trading stocks. In | | | | the currency originates from. Basic indicators like, the |
| the foreign exchange market brokers offer up to | | | | trade balance, foreign investment, PPI, CPI and GDP |
| 400:1 leverage; 200 times what you can get trading | | | | all reveal the general state of an economy, and |
| stocks. An example: say you put $1,000 in stocks, at | | | | cause fluctuations in the supply and demand for a |
| 2:1 leverage you could purchase shares valued up to | | | | given currency. Since information on interest rates |
| $2,000. However, invest the same amount on the FX | | | | and currencies, various expert commentaries and |
| market at a margin of 400:1 leverage and you can | | | | data on international trade are readily available it is |
| work with up to $400,000 worth of currencies. The | | | | not difficult to get an informed picture of the market |
| high leverage option is one of factors that is most | | | | with which to make wise trades. |
| appealing about forex market, allowing the common | | | | Profit from economic instability |
| man an opportunity to invest along side the wealthy. | | | | Markets change. Sometimes they change fast. The |
| NOTE: It should be noted that trading using leverage | | | | foreign exchange market allows you to profit daily |
| can improve your chances for gains as well as losses | | | | from the fluctuations in the economic climate of any |
| on any given trade. Trade smart! | | | | country. Even during these turbulent times for the |
| Less to keep up with | | | | American economy FX traders are raking in the cash |
| Did you know that there are about 8,000 companies | | | | by making smart trades, something anyone with |
| that are traded in the stock market? What a chore it | | | | average intelligence can learn to do. The stock |
| would be to evaluate which ones to invest in and | | | | market, however, always suffers during times of |
| which ones to steer clear of; choosing which to trade | | | | economic uncertainty causing many to lose money. |
| would be tedious and confusing. The proverbial | | | | As you can see there are several good reasons to |
| needle in the haystack comes to mind here. | | | | choose the foreign exchange market over the stock |
| However, the forex market has only 6 major | | | | market. However FX is not without its pit falls and |
| currency pairs to choose from, and around 34 | | | | should be entered into cautiously. Which is why was |
| second-tier currency pairs. How much less trying is it | | | | created, to offer objective reports on products |
| to keep up with the characteristics of 40 currency | | | | related to foreign exchange trading. At you will find |
| pairs than that of 8000 companies? | | | | reports about forex training courses, forex brokers |
| Trade forex 24-hours a day | | | | and which ones should be avoided, different |
| Each week the FX market opens Sunday at 5P.M. | | | | software used for trading and explanations of many |
| EST, when the Sidney and Singapore markets open | | | | forex trading concepts. |
| and continues until Friday at 5P.M. EST when the New | | | | |