Oic Trade

Posts Tagged ‘Stocks’

Most people discover the power of share trading at some point in their lives.? The learn how they can leverage the money that they make in their job to create more income through share investing.

The big problem that most people face though, is that share trading occurs during business hours.? Now for some people that is not a problem, but for many, it is just not possible to sit at a desk during business hours trading, when you should be working for your employer.

There is good news though.? You can trade another market 24 hours a day except for the weekend (and who wants to trade on the weekends anyway?).

The market I’m talking about is Forex.? Forex is the Foreign Exchange, but don’t let the name worry you.? The Foreign Exchange is where traders exchange currency internationally.? This is why it trades 24 hours a day.? Somewhere around the world there is a Forex market that is in business hours trading all the available currencies.

Here are some benefits to trading Forex:

1.? Forex is an extremely liquid market.? This means that there are always people to trade with no matter whether the currency is going up, down or sideways.

2.? Forex allows you to trade whichever way you feel the currency is going to trend.? If you believe that the currency is going up then you will buy, or ‘go long’.? If you believe that the currency is going to fall then you will sell off the currency, or go short.

3.? Trading Forex is quite straight forward because you don’t need to analyse hundreds of stocks to find the right trade.? There are only 10 currency pairs that you would bother looking at, and out of those you can just trade the currency that you like.

4.? The Foreign Exchange is easy and cheap to transact.? Most brokers will not charge you a commission for getting in and out of a trade.? Rather, they make their money from ‘the spread’.? This is where they factor in their costs by slightly changing the currency price that they offer you, so they take a small cut up front.? The money doesn’t come out of your pocket.

5. Foreign Exchange Forex [http://forex.lifeandmoneyonline.com] lends itself to day traders, or intra-day traders who just want to get in and out quickly, snapping up profits every day of the week.? Forex is also for medium term traders who don’t like the excitement of watching the screen every day, but just want to check their prices once a day.

6. Leverage is probably the most powerful ingredient to currency FX Trading.? When you buy a contract you don’t put up the full amount that the contract is worth.? Rather, you provide a margin (or a small portion) to your broker, who holds that money for you in trust while you make money in your trade.? when the fx trade is complete and you’ve made money, your margin will be returned to your trading account.

The money Forex trading can make on a fairly small float of cash is great news for investors and I suggest that if trading currency markets interest you, then you should give it a go.

Good luck with your investing!