So.. you want to make lots of money in forex trading..? Well, before
you get your feet wet....let me refresh your mind why forex trading is
such a hot money maker...
Here's a few reasons why....
The cash/spot FOREX markets have certain unique attributes that offer
an unmatched potential for profitable trading in any market condition
or any stage of the business cycle. It leaves one to wonder why bother
in the first place? The answer to that is very simple. Forex trading
offers people who trade:
A 24-hour market: A trader has the chance to take advantage of all of
the profitable market conditions at any time; which means that there is
no waiting for the start like the New York Stock exchange.
Highest liquidity Possible: The FOREX market is the most liquid market
in the world. That means that a trader can enter or exit the market
whenever they want during almost any market condition minimal execution
barriers or risk and no daily trading limit.
High leverage: It has a leverage ratio of up to 400 is normal when
compared to a leverage ratio of 2 in the equity markets. Of course,
this makes trading in the cash/spot forex market awkward a swell
because it makes the risk of the down side loss much higher in the same
way that it makes the profit potential on the upside much prettier.
Low cost per transaction: The retail transaction cost is actually less
than 0.1% under the normal market conditions. At larger dealers, the
spread could be less than 5 pips, and may expand a great deal in fast
moving markets.
Always a good market: A trade in the FOREX market means selling or
buying one currency against another. In essence, a bull market or a
bear market for a currency is defined in terms of the outlook for value
against other currencies. If the outlook is positive, you get a bull
market where a trader profits by buying the currency against other
currencies.
Inter-bank market: The foundation of the FOREX market consists of a
global network of dealers that communicate and trade with their clients
through electronic networks and telephones. There are no organized
exchanges like in futures that are there to serve as a central location
to facilitate transactions the way the New York Stock Exchange serves
the equity markets.
No one can corner the market: The FOREX market is so large and has so
many participants that no single trader, even a central bank, can
control the market price for an extended period of time.
It is not completely Unregulated: The FOREX market is seen as an
unregulated market although the operations of major dealers like
commercial banks in money centers are regulated under the banking laws.
For the average person who is willing to get into forex trading, this
market is just a better bet. With it being so wide open like it is, you
have a higher gross potential than with any other trade type.
Source: http://www.ArticlePros.com/author.php?yap kee chong
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