At the point when asked why they like the Forex market over other venture decisions, most traders will instantly specify the simplicity of trading in Forex. The Forex market gives a huge measure of adaptability in the way you exchange your speculations. First of all, the Forex market is accessible to exchange all day and all night amid the week. Dissimilar to the customary securities exchange that shuts every evening, the Forex advertise enables speculators to exchange at whatever point they have time and empowers them to benefit from developments in currency esteems at whatever point they happen.
- | Joined May 2013 | Status: Conscious Incompetence | 127 Posts
You're going to pay a price for every bloody thing you do and don't do
- Joined Aug 2009 | Status: Reading the TAPE | 2,339 Posts
I believe the two main reasons people like forex are:
(1). A would be trader can open an account with mommy's credit card for as little as $50.00. Sure, there are countless people who say you need $10,000.00 to start, or at the very least, $5,000.00. But there is no shortage of brokers that will open an account for what some people send in a week at Starbucks. You can't find a futures broker that will open an account for such a paltry sum. And if you wanted to day trade stocks, you need at least $20,00.00 by law. So people are attracted to the low barrier to entry of Forex, despite the re-quotes, widening spreads around news events, trading against one's own broker, et all.
(On a side note, there was a Harvard study that concluded the lower the barriers to entry for a profession, the greater the failure rate. Which is why, you see more failed actors than brain surgeons.)
(2) Anther draw to the Forex market is a little more subtle. Many people are drawn to Forex because many brokers offer free demo accounts that do not expire. This may seem a little counter intuitive after (1), but never expiring demo accounts allow would be traders to spend all their time "perfecting" a system or methodology, all the while never having to put anything at risk. Just think about the number of "traders" on Forex Factory that have been here for years, and are still trading on demo. Coupled with the fact that the Forex market is "24/7" (we know it really isn't for a retail trader), non expiring demo accounts offer an attractive way to call oneself a trader without actually risking anything.
(3) I know I said two. But this is a reason people should love Forex: It's high propensity to trend. Most traders would behoove themselves if they traded with the trend, rather than trying to catch tops or bottoms. But we are really talking about currencies and therefore to take advantage of propensity of currencies to trend, one really should look at Futures. But wait, mom's only got $200.00 on her Visa.....................
(1). A would be trader can open an account with mommy's credit card for as little as $50.00. Sure, there are countless people who say you need $10,000.00 to start, or at the very least, $5,000.00. But there is no shortage of brokers that will open an account for what some people send in a week at Starbucks. You can't find a futures broker that will open an account for such a paltry sum. And if you wanted to day trade stocks, you need at least $20,00.00 by law. So people are attracted to the low barrier to entry of Forex, despite the re-quotes, widening spreads around news events, trading against one's own broker, et all.
(On a side note, there was a Harvard study that concluded the lower the barriers to entry for a profession, the greater the failure rate. Which is why, you see more failed actors than brain surgeons.)
(2) Anther draw to the Forex market is a little more subtle. Many people are drawn to Forex because many brokers offer free demo accounts that do not expire. This may seem a little counter intuitive after (1), but never expiring demo accounts allow would be traders to spend all their time "perfecting" a system or methodology, all the while never having to put anything at risk. Just think about the number of "traders" on Forex Factory that have been here for years, and are still trading on demo. Coupled with the fact that the Forex market is "24/7" (we know it really isn't for a retail trader), non expiring demo accounts offer an attractive way to call oneself a trader without actually risking anything.
(3) I know I said two. But this is a reason people should love Forex: It's high propensity to trend. Most traders would behoove themselves if they traded with the trend, rather than trying to catch tops or bottoms. But we are really talking about currencies and therefore to take advantage of propensity of currencies to trend, one really should look at Futures. But wait, mom's only got $200.00 on her Visa.....................
Wyckoff VSA: Always FIBbing, but never lying.
