Believe it or not, global forex trading market is far more lucrative than the equity market. Global forex trading refers to the foreign exchange market, the place where currencies of different countries are bought and sold. It has been operational internationally since 1970 when the concept of floating currencies and free exchange rates was introduced.
Though not as widely publicized as the equity market, the total value of global forex trading market goes far beyond $2 trillion daily.
One reason this market is so lucrative is that it is working all day and night. The market is open 24 hours a day, 7 days a week meaning those who want to trade can do so any time they want to unlike other markets that have restricting hours.
Leverages are also very different in forex trading. Consider your regular stock account, you can open a margin account and use double leverage trading. But with forex trading you can go much further getting leverages of twenty, fifty, even a hundred times.
As you know, leverage can be a great trading tool, and if you train yourself properly to use this tool on the forex trading market you can gain a major edge in the market. While the concept of getting that edge is tempting, you should also be careful and proceed only after you know what you’re doing.
The leverage can get wiped out in both the ways. If you are not careful about how you use the leverage, you can land up being totally bankrupt too. The tool can make you a millionaire. Simultaneously it can bring you down to ground as well.
The global forex trading market is very speculative in nature. If you intend to be successful there, you need to be very methodical and analytical in nature. Also you need to be strong enough to control your impulse and emotions. You need to learn to listen to your head and not your heart. You must not experiment too much.
Try and utilise strategies that are proven and time tested. You can study trustworthy forex charts and graphs that have proved to be powerful indicators of the market.
Global foreign trading market is very speculative
The best way to play the market is to know what you are doing. That is only accomplished through continued learning. Learn all you can about the market. Find a system that works for you, and stay with it. When you are first starting out, keep in mind that the majority of losses by beginners come in the margin-trading arena, so you may want to avoid this until you are more used to the market.
