7 Reasons Why FOREX Trading Is Better Than Stock Trading Or Futures Trading
by Yusoff Allian
1. Trade 24 hours a day! With the possible exception of a few hours on the weekend, the FOREX market is open around the clock. Compare that to the stock market and the futures market which usually opens at 9:30am and closes at 4pm EST in North America. Due to the global nature of the FOREX market you're able to trade at your convenience, day or night.
2. No commissions. Tired of paying upwards of $30 per trade for a simple stock transaction? You don't have to worry about that when trading on the FOREX market. Your FOREX broker makes their money by taking the difference in price between the ask price and bid price for the currency being traded. This means no money out of your pocket.
3. Instant order fulfillment. A common complaint (and sad fact of life) when it comes to trading on the stock or futures market is that there is often a delay between when you place your order and when it actually gets filled. This can mean the difference between making a bundle and making nothing at all. Due to the incredibly high volume of transactions that occur daily on the FOREX market you can fill your orders instantly based on the real-time data you see on your trading platform. There can be occasions when the market is particularly volatile which can result in some minor delays, but for the most part you get what you see is what you pay for.
4. No middlemen. Unlike equity exchanges, FOREX traders can access the market maker directly without having to go through an intermediary first. This means that a FOREX trader can buy or sell directly from the entity that decides on the price for a given currency pair. Because an extra layer of communication has been eliminated, FOREX traders benefit from cheaper costs and gain quicker access to trades.
5. No unfair influence. We've all seen it on T.V. or read about it on the news - talking heads telling us to buy when a stock's price is plummeting, assuring us that everything will be alright in the end. The truth is that the only one that wins is the firm issuing that so-called advice while the average investor is left to lick his wounds. The FOREX market cannot be influenced by any one brokerage or person as it is representative of a country's economic health and not opinion, and is therefore immune to any attempt at influence.
6. No choice overload. There are over 8000 stock available to trade on the NASDAQ and NYSE alone - that's an awful lot of news to keep up with on a daily basis, and an awful lot of analysis to perform before you begin your next trade. Compare that to the FOREX market which, although it gives you access to dozens of different currencies, tends to focus on the four major currency pairs. This drastically reduces your research time and allows you to enter the market far more quickly.
7. Limited risk. FOREX traders must enable margin limits to mitigate risk. The trading platform of your choice will automatically issue a margin call if the margin amount required by your account exceeds the actual capital available in your account. What this means is that the most you can possibly lose is the money you have sitting in your FOREX trading account. With futures trading it is possible for a margin call to occur at a loss, leaving you liable for any amount not available in your account.
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Showing posts with label Huge Gains. Show all posts
Showing posts with label Huge Gains. Show all posts
7 Reasons Why FOREX Trading Is Better Than Stock Trading Or Futures Trading
Monday, March 30, 2009 Forex Killer Strategy, forex trading, forex trading course, Huge Gains, Internet Forex Trading, make Money Fast
Forex Trading - Why Most Trader's Can Never Accept Huge Gains
Sunday, March 15, 2009 forex trading, Huge Gains
Forex Trading - Why Most Trader's Can Never Accept Huge Gains
by kelly Price
Most forex traders simply never make big returns because they cannot accept them. This may sound paradoxical as you would think most traders would want this and yes they do - but a psychological problem stops them from making the returns they deserve.
Traders have more problems accepting profits than taking losses.
Taking a loss is easy you place your stop and your taken out or not with a profit you don't have such clear cut levels to work with - in fact you have no levels at all as the trade could produce a minor profit of a few hundred dollars or a huge profit of $5,000, $10, $20,000 or more but:
When do you take profits?
This is the problem for most traders.
The dilemma is most traders have problems staying with a long term trend, as open equity swings eat into their open profit.
Here is a typical example of what happens.
When a trader gets a profit he gets excited, the bigger the profit becomes the more excited he gets and the more tempted he is to take it. All the time as the trend is moving volatility causes retracements and losses in open profit.
As the profit gets bigger and the swings against him more violent the more nervous he gets and in the end he moves his stop up or snatches the profit and banks it.
He then watches as the trend continues the way he thought and make a huge profit while he only has a minor profit despite getting the trend right.
So how do you cope psychologically with the above?
Here are some guidelines that will help you milk and maximize your profits from major trends.
1. Have Courage
You're after a big profit, so you know that if you believe the trade has further to go you need to accept short term price swings against you. Short term dips in equity, are a by product of making huge gains.
2. Risk = Reward
Do NOT Move your stop to quickly leave it in its original position and trail it up slowly, a big trend will sometimes show huge volatility as it develops and this means not getting clipped out early. Traders try so hard to avoid risk they actually create it by getting clipped out by putting their stop to close.
3. Trail Slowly
If you want to make money from the big trends you are going to have to trail your stop slowly and this means that at the end of the trend, you are going to give a big chunk back at the turn - this is unavoidable with long term trend following so get used top it. Comfort yourself with the knowledge that if you caught just 50% of every major trend you would be very rich.
The KEY
Is to have rock solid confidence in your forex trading strategy and accept that you will give back profit and lose open equity but acceptance of the above will make you a lot of money.
A lot of traders think that they actually don't deserve big gains and they should take what they can get but if you have the courage and conviction to hold a big trend you deserve every cent of it - because most traders are simply incapable of doing it.
Accepting big profits is not easy psychologically - but get the right mindset and a solid system and you could be catching the big trends that yield thousands or tens of thousands in profits, so get ready to accept them when they come your way!
by kelly Price
Most forex traders simply never make big returns because they cannot accept them. This may sound paradoxical as you would think most traders would want this and yes they do - but a psychological problem stops them from making the returns they deserve.
Traders have more problems accepting profits than taking losses.
Taking a loss is easy you place your stop and your taken out or not with a profit you don't have such clear cut levels to work with - in fact you have no levels at all as the trade could produce a minor profit of a few hundred dollars or a huge profit of $5,000, $10, $20,000 or more but:
When do you take profits?
This is the problem for most traders.
The dilemma is most traders have problems staying with a long term trend, as open equity swings eat into their open profit.
Here is a typical example of what happens.
When a trader gets a profit he gets excited, the bigger the profit becomes the more excited he gets and the more tempted he is to take it. All the time as the trend is moving volatility causes retracements and losses in open profit.
As the profit gets bigger and the swings against him more violent the more nervous he gets and in the end he moves his stop up or snatches the profit and banks it.
He then watches as the trend continues the way he thought and make a huge profit while he only has a minor profit despite getting the trend right.
So how do you cope psychologically with the above?
Here are some guidelines that will help you milk and maximize your profits from major trends.
1. Have Courage
You're after a big profit, so you know that if you believe the trade has further to go you need to accept short term price swings against you. Short term dips in equity, are a by product of making huge gains.
2. Risk = Reward
Do NOT Move your stop to quickly leave it in its original position and trail it up slowly, a big trend will sometimes show huge volatility as it develops and this means not getting clipped out early. Traders try so hard to avoid risk they actually create it by getting clipped out by putting their stop to close.
3. Trail Slowly
If you want to make money from the big trends you are going to have to trail your stop slowly and this means that at the end of the trend, you are going to give a big chunk back at the turn - this is unavoidable with long term trend following so get used top it. Comfort yourself with the knowledge that if you caught just 50% of every major trend you would be very rich.
The KEY
Is to have rock solid confidence in your forex trading strategy and accept that you will give back profit and lose open equity but acceptance of the above will make you a lot of money.
A lot of traders think that they actually don't deserve big gains and they should take what they can get but if you have the courage and conviction to hold a big trend you deserve every cent of it - because most traders are simply incapable of doing it.
Accepting big profits is not easy psychologically - but get the right mindset and a solid system and you could be catching the big trends that yield thousands or tens of thousands in profits, so get ready to accept them when they come your way!
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