the stock market. One of the main reasons is the fact that Forex
offers a much greater return.
With foreign currency exchange fluctuations happening daily from as
little as just one or two percent any investor who has planned his
entrance and exit strategy properly and gets his timing right, can
receive significant rewards.
Many people also like the fact that more leverage is available with a
foreign exchange. For example: you could leverage the purchase of
$100,000 with $10,000 through margins that could give a great return
at only 1% and with less risk.
With Forex trading the market is open 24 hours a day compared to
conventional business hours held by the stock market. Forex trading is
also done without having to pay extortionate amounts of money in
commission. This can of course mean great savings.
Because Forex trading is open 24/7 and because of its massive size,
any trader is able to work 24 hours a day moving around from the
difference markets, i.e. Asian, European and American. Add to this the
Forex leverage opportunities available then the chance of huge profits
are great.
There is a misconception about the size of the Forex market. Many
people don't realise that it is so huge that no single investor has a
chance of cornering the market.
Unfortunately many people fail to understand Forex to its fullest and
this is only through a lack of education. Because of this lack of
education, traders who have previously experienced the stock market,
seem to believe that Forex is risky and has low profit margins, some
would say extremely small. However it does take more than just
watching CNN.
As a Forex trader, people must educate themselves through newsletters
etc. If people were to join a Forex trading site and make use of the
on-line training programs available, of which the majority are free,
then they would start to learn about the advantages of Forex against
trading on the stock market.
As far as the stock market goes, it does have its advantages in that a
person can invest in the stock market without any prior knowledge and
possibly do very well. There are some stocks that are unlikely to
devalue like blue chip stocks. For long term savings stocks can be
fine, however, for short term gains you need to be definitely looking
at Forex.
Forex is maybe considered by some people to be risky, mainly pension
funds who rarely invest in Forex. However, for the smart ones that
have taken the opportunity of educating themselves, they will find,
without doubt, that Forex is the easy way to go.
Take the billionaire George Soros as a prime example. He shorted the
British pound and made $2 billion in profit at one point. He also
makes over 60% returns on the Quantum fund which he owns and has over
$4 billion under management. There have been times of course, when
Soros has lost money, however he simply says "I make a lot of money
when I'm right and loose as little money as possible when I'm wrong".
Soros's philosophy is to scrutinize a country's stock market to see if
current trends are right or wrong. If he believes that a trend is
overshot then he simply goes the opposite way and makes a killing.
Soros is a prime example of how good money can be made in Forex if
investors are willing to study, learn, invest and of course take a
risk. Whilst however it is not for the timid, if you're a daring
Entrepreneur then it's the perfect place for you to try your hand as
Forex offers the chances of a good return.
Successful Traders Develop Their Own System: http://www.draforex.hk.to/
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