There are many reasons to trade the market. The forex (FX) market is one of the single largest financial market in the world. It’s also the most liquid market with a daily volume of $4 trillion. Liquidity is one of the main reasons why people trade forex.
Trade 24 hours a day, five days a week
The forex market runs 24 hours a day, five days a week, because at any given time of the day or night the market is open somewhere in the world. That means you can trade whenever you want, from anywhere in the world.
Trade in rising, falling and ranging markets
One of the reasons to trade forex is that you can find opportunities in both rising and falling markets – you can trade when you believe the price of the currency pair is going up, or when you think it’s going down. If you think the price is going up, you buy, and if you think it’s going down, you sell.
One of the most powerful tools in forex trading is leverage. Using leverage means that if, for example, you want to make a $100,000 deal, with a 1:500 leverage you would need a deposit of only $200. High leverage can make the forex market highly profitable, but at the same time very risky.
- “leverage is the amount of rope your broker gives you to hang yourself”
Sometimes you can observe periods of volatility when a market opens or closes. That means that the prices can change very quickly and unexpectedly. High volatility can create trading opportunities, but it also increases risks.
- a speculator waits for the perfect opportunity
- a speculator has a range of setups he/she believes in and uses them based on market conditions
- do not overtrade!
Today you can trade the market anytime, anywhere with your mobile phone.
- never let emotion get in the way
- decision made out of fear is always the wrong one
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