Tuesday, May 5, 2009

Automated Forex Trading

Many people are turning towards forex trading after losing their money in the recent stock market crash. In fact, forex trading is the best work from home opportunity. Forex trading can be done anywhere from the world if you have a computer and an internet connection. Forex trading is the answer to the today’s global recession.
Forex market is quite different from the stock market. The stock market is less liquid as compared to the forex market. Stocks were traditionally seen as long term investments, where people buy stocks or a group of stocks in mutual funds and wait for them to appreciate and build in their retirement accounts.
Forex markets are open 24 hours as compared to stock markets that have fixed trading hours. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed. You can trade forex online from anywhere in the world 24 hours.
Forex trading is a highly liquid market. Most of the participants in the forex markets are either hedgers or speculators. Big institutions are looking for hedging their forex exchange risk whereas small traders are looking for speculating opportunities and willing to take on risk. Stocks are considered to be a long term investment.
In forex trading, you are only dealing with mostly 5 currencies: USD, GBP, CHF, EURO and JPY whereas in stock trading, you have to look for promising stocks among thousands of stocks listed on the stock markets.
The trading costs are also lower in forex where you only pay the bid/ask spread as compared to the stock trading where you have to pay a commission to your broker per trade. So, you can see yourself forex trading is a better opportunity than stock trading.
Then, dont forget the Stock Market Crash of 2008. People have lost 50-to-75% of their portfolios and retirement accounts, even with so called blue chip stocks - those having proven value over many years and many bought as the backbone of an investment portfolio.
Stock markets are going to take a few more years to recover. There is always either a bull market or a bear market prevailing in stocks. In forex, there is always a bull market. Since forex trading is done in currency pairs, if one currency goes down, the other currency goes up.
Over the years, forex markets have grown in size. Daily $3+ trillion are being traded in currencies all over the world. If you combine, all the stock exchanges in the world, they still can’t reach 40% of this figure. Currency markets have become so huge that they are beyond the capacity of any single agency or agent to control.
Now, most of the people are wondering how they can recoup their losses in the stock market crash and build their retirement accounts again
Learning forex trading is the answer. Many people want to learn forex trading but are afraid. If you can only spare one hour per day, you can learn forex trading in a month. Forex trading as a hobby has the potential of making you a fortune.
I have a blog where I give many risk free forex trading strategies. One method that I recommend only cost $149. You can try this method of 60 days risk free. It is the best method to trade forex on autopilot. Once you set your system, you only need to give 10 minutes daily to see how much money you have made overnight.

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