Lesson 2: Why Trade On The Forex Or Currency Markets?
Lesson Two: Why Should You Trade Forex?
Forex is a unique option for investors. It has become increasingly popular throughout the world as it offers direct access to world’s financial markets and a wealth of opportunities. With Forex, you are able to continue your current lifestyle while learning how to trade. This can provide you supplementary income that could grow your wealth and help you retire comfortably.
Here are some advantages to trading Forex:
- Get started easily. Forex trading offers an extremely low barrier to entry. It is cheaper to trade Forex than almost any other financial market. With just $100, many brokerages can open an account for you in less than 3 days.
- A better return than the banks. Most people rely on fixed interest as their main source of investment. As you probably know, this offers very low returns and is a slow way to build your wealth. Investors can use Forex to diversify their investment portfolio and greatly increase its performance
- You don’t have to quit your day job. Trading currencies offers you a great amount of flexibility. Whether you want to trade in the morning before you head to work or at night when you get home, it is all possible. The markets are easily accessible on your mobile phone, enabling you to monitor the markets anywhere you go. You can trade in a way that suits your lifestyle.
- Leverage advantage. Because there is so much liquidity in the Forex market, it enables traders to take advantage of considerable leverage. Using leverage, traders can profit from trading the smallest movements in the market. Leverage however, needs to be used intelligently as it can also amplify losses.
- Deep liquidity. There are so many people trading the 5 trillion dollar Forex market that is it very easy to go in and out of the market. Most of the time, it is instant. You never have to worry about having a position and being unable to get out of the market.
- Up or down, you can profit either way. People tend to fear a bad economy as it will affect their investments negatively, but if you’re a Forex trader, that won’t be a problem for you. Because if you think the price on a certain pair is going down, you can sell it and profit! The Forex market allows you to profit from either direction.