There are many ways to trade, but everyone seems to be talking about Forex and currency trading these days. Check out these three ways it's better than trading stocks.
How to Make Money in a Down or Up Market
One of the three reasons why currency trading is better than stock trading is that it can bring growth in both bull and bear markets. There are no rules about short selling, and you can make money no matter where the market goes. When you use Forex, you sell one currency and buy another. Even when markets are changing, a trader can still make money by taking both short and long positions.
50 times more borrowing power than stocks
It's easy to see why currency trading is better than stock trading. This is another reason why currency trading is better than stock trading. When you trade foreign exchange on Forex, you can get up to 50 times as much leverage as you can with a stock account.
Diversity here is not like anywhere else.
Forex can offer a lot of different things. The way countries trade with each other hurts the value of their currencies. If a country imports more than it sells, it will have a trade deficit, which is bad for the value of its currency. So, trading currencies is better than trading stocks.
A smart investor will know that they need to diversify their US dollar balance by holding a number of different currencies. This can be hard to do since most US banks only offer a few other currencies. You can control hundreds of thousands of dollars' worth of currencies through Forex and foreign currency trading. This gives you more than 50 times the leverage of the stock market, which is another reason why currency trading is better than stock trading.
Open 24 hours a day, seven days a week
You can trade Forex around the clock, every day of the year. You can start trading at 5 p.m. EST, when the markets in Sydney and Singapore are open. A few hours later, Tokyo opens. Then, London opens at 2:00 AM EST, and by the time New York's currency markets have been open for 15 hours, Tokyo and London will have both opened. The stock market isn't as easy to get into, so currency trading is better than stock trading. In fact, Forex is the biggest and most liquid market, and you can trade there 24 hours a day.
You've given three reasons why trading currencies is better than trading stocks, but there are many more.
All rights reserved. Copyright (c) 2007 Joel Teo. (You may publish this whole article as long as you include the following author's name and only live links.)
