The sudden hype around Forex trading is not without good reason. Forex, which is the exchange of currency on the open market, provides a number of benefits that you won’t get from the stock market or other trading venues. Forex is fast, it’s fun and it has the potential to lead to big profits.
The Size of the Market
There is close to 2 trillion dollars being traded on the Forex market every single day. You don’t have that kind of liquidity in any of the other markets. With that much money floating around, there is no worrying about prices changing too much before you are able to enter or exit your trade.
With a market that is this large, it is also nearly impossible for prices to be manipulated by any one single group. This allows for a more accurate read of supply and demand as you analyze the market and your currency pairs.
Gain the ultimate advantage with our FREE eBook "How to use the Wave Principle to Boost Your Forex Trading"
By Elliott Wave International
The foreign currency exchange market, known as forex, is the most liquid financial market on the planet -- liquid to the tune of $5.3 trillion traded per day!
That basically means every single day in forex is the day after Thanksgiving -- a.k.a. "Black Friday" -- with a stampede of traders pounding at the front door come opening bell, and then frantically racing up and down the market aisles in search of opportunities.
It's madness. Market turns are lightning fast. You have to be faster. You have one single goal: Get there before they're gone.
That goal, however, is difficult to attain if you're following the blueprint of mainstream financial analysis; which tells you to look outside the market for clues as to where prices will go next. The trouble with this strategy is that when you have your eyes focused outside the markets, you often miss high-confidence trade set-ups developing on the price charts themselves.
Take, for instance, the recent near-term performance in the euro/Canadian dollar exchange rate, forex name EURCAD. On November 20, the EURCAD took a nasty fall and continued slipping to a one-month low on November 21. Mainstream analysis identified the "cause" of the move after prices had already started to reverse: Continue reading "Every Day Is Black Friday In The World Of Forex"→
Take a ride on a New York subway and you will quickly be able to pick out the stock brokers. These are the Brooks Brothers suits, and probably a briefcase, cell phone in the ear barking orders. Now pick out the Forex traders. That's not nearly as easy to do since they look just like everyone else on the subway.
Sure that Brooks Brothers suit may also be dabbling in currency trade, if he's smart, but so may the guy in sweats sitting next to him. That’s because unlike other markets, Forex has no prejudices.
Trading in the other markets is constrained by time and money. If you don't have the right amount of either, there is no getting in. Forex on the other hand allows for trading around the clock and with very little investment capital. This makes it ideal for anyone who is looking to add to their income.
Who Can Trade Forex?
Admit it, you were always fascinated by the idea of top investors who were making tons of money just by having some. The idea that your own money could be put to work to earn you more has always been fancied, and the reason why banks offer interest earning savings accounts. With the easy availability of Forex, you can expand on that premise and increase your wealth quicker.
Take a teacher for example. You already know they are underpaid, plus they have all these long breaks with nothing to do but read books and watch re-runs. Learning how to trade in the Forex market is ideal for this profession. Not only do they have the spare time before and in between classes to check on their trades they also have months of free time to learn how to get really good at it.
A teacher could find a broker that allows for just a few hundred dollars to get started in trading. With leverage, their investment, and of course return, will be increased allowing them to profit more than what they had in the account would have allowed. So think about it at your next meeting at your son's school. His teacher could be in on Forex trading too.
Jim Martens shares key insights into trading currencies with the Wave Principle
By Elliott Wave International
In this brand-new video interview, EWI Senior Currency Strategist Jim Martens shows you his approach to the forex markets -- and how the "simplicity" of Elliott wave analysis has guided him through 23 years of forecasting.
Watch this new interview -- and follow the link below the video to learn how to get a full week of his currency forecasts - FREE - during Forex FreeWeek (Nov 4-11).
This article was syndicated by Elliott Wave International and was originally published under the headline Forex Trading: Perspective, Trends & Finding New Opportunities. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
Today, I would like to share with you 3 easy-to-use, profitable Forex strategies based on the Trade Triangle technology. There is a strategy available for short-term, intermediate-term, and long-term trading styles. All strategies have been time tested and have proven to be winners over time.
If you are a short-term trader, watch this Forex video: