7 Reasons Why You Should Learn to Trade

When it comes to trading short term there is no better market than the Forex market to offer smaller traders the opportunities and accessibility to make some money.

I’ve been involved with investor training for some 20 years now, and Forex is where most traders will gravitate towards because it offers several key advantages over stocks, commodities, fixed income.

1. Open all hours during the week

The forex market is open 24 hours on weekdays as it is a worldwide market.  It trades over $5 trillion per day and is the largest market by a long shot, the forex market dwarfs other markets in terms of activity and opportunities in the week. Investors can exploit trends and setups that happen within the week, anytime.

2. Low trading costs

Because of its size there is a bewildering array of brokers offering different levels of support and trade execution for every type of trader.  This competition means prices are lower and there are many ways to take a position on the currency market at fairly low cost.

3. Trade when you want, at a time convenient for you

So you have a day job and want to trade in the evening when you get home – no problem.  The forex market is open and you will be able to place trades 24 hours a day during the week.

4. Predictable performance from economic events

Economic events such as non-farm payroll figures, interest rates changes or FOMC meetings will have an impact on prices that can be forecast.  If you learn the various expected outcomes you can make money from placing the right trade.

5. Stability in price

Depending on which platform you trade with, you can expect your trades to be executed immediately, and you’ll normally get the prices that you’re quoted on your platform. The stability of the prices and speed of transaction attracts a lot of traders to trade forex. However, if you trade stocks, you know your trade could potentially span a day or two thus giving a chance for the price to slip and change over a weekend. Your money is not tied up for long periods of time, giving you more control in trading forex.

6. Make money going long or short

Since your trading involves only a currency pair and not multiple combinations of markets and trends, the opportunity for profit is always there. Profits can be achieved whether the market is bullish or bearish for one currency against the other. What matters is the direction of the trade in the right currency pair.

7. Leverage trading opportunities

Risk management is very important to protect your account from highly leveraged losses. It is very important to learn to trade forex the right way from the start to avoid potential losses.  That said, managing a trade with leverage is a great way to increase the size of your rewards over a shorter time span.

 

In summary, the forex markets still offer the greatest choice for traders to locate a set-up, analyse the price history of the currency and execute using a leveraged trade that can return multiple times the stake.

 

 

 

The Forex market, however, can be a cruel mistress, much of these benefits outlined above could also be viewed as negatives for many wouldbe traders.  Those not accustomed to the speed of price change, and the magnified effect has on a leveraged trade, would do well to trade with a demo account until they are confident.

The markets are always changing, and traders need to adapt to new products, strategies and tools.  Join the world’s best traders and learn how they are conquering the markets at Round the Clock Trade Summit.

It’s a free to attend and we’ll highlight lots of pitfalls in trading so you don’t make the mistakes that others have.  Plus you’ll learn lots of new strategies, discover simple systems that work, and be inspired listening to the pros!

 

Be the first to comment on "7 Reasons Why You Should Learn to Trade"

Leave a comment

Your email address will not be published.


*


Before you go, click here to sign up for invitation to our next free trading workshop!

Holler Box