Sunday, March 30, 2008

Another article on forex online trading xpresstrade

Major Advantages to Trading Forex

When most investors hear the word forex, the words that flash through their brain are "risky," "complicated," and "tiny profit margins." This is because the information on currency trading isn't as available and easy to access as the stock market. A stock investor just needs to pick up the Wall Street Journal or turn on CNBC to instantly see what's new and exciting. When you're a stock investor, you can talk to your friends, neighbors, and co-workers about what you're buying, share tips, and brag about your profits. Everyone is familiar with the stock market. Forex is a different beast. To find information, you have to turn to the internet or privately run newsletters. You can't talk about forex with anyone in your everyday life because they won't understand the lingo and will have no idea what you're talking about. It's a shame, because our game has some major advantages over stock trading. Maybe if forex information was more public, the average investor would realize the following 5 things to be true.

One thing that most people doesn't realize is that there is no trading commission involved in currency trading. When you're trading stocks frequently, even if it's done online at $20 a pop, the fees start eating into your profits. If you're trading options, you're not only paying a commission on the trade, but you're also paying additional fees per contract. Fortunately for forex investors, the only retail transaction cost is the bid/ask spread which is usually less than 5 pips (0.05%).

Secondly, the currency market is open 24 hours a day, 5 days per week. Unlike the stock exchange, which is only active between the opening and closing bells, you can trade forex first thing in the morning or in the wee hours of the night. There are people all around the world trading at all hours, so a trader can take advantage of any market condition at any time.

Another big benefit to the foreign exchange is the huge leverage opportunity. Leverage, also called margin, is when you borrow your broker's money and add it to your own capital in order to make a larger investment. In the stock market, you have to pass your brokers strict guidelines to be approved for a margin account, and if you do, you'll get a maximum of 2:1 (which means if you invest $10,000, you can borrow $10,000). In forex, a ratio of up to 400 is considered normal. If you use that massive amount of leverage properly and hit some big winners, you can make substantial money in short periods of time. Of course, the opposite is true as well. You can lose substantial money very quickly also. But you can't get a better opportunity to use other people's money.

A fourth advantage to currency trading is it's size. Because the forex market is so huge and has so many traders active at all times, no single investor can corner the market. In the stock market, each equity issue has a finite amount of outstanding shares. For many small cap companies, a large investor could amass a large percentage of those outstanding shares, and because of the low liquidity, their choice to buy, sell, or hold will have drastic effects on the price of that particular stock. With currency, no single investor, not even a central bank, can accumulate a controlling amount of something like the dollar, pound, or franc.

The last great characteristic of the forex that we'll discuss in this article is the never ending bull market. Forex is a zero sum game. A gain is only made when one currency rises in value in relation to another currency. So this means that if one currency is going down, another is going up. In the stock market, when a bear market hits, the vast majority of stocks are all going down. If Microsoft drops 5 points, that certainly doesn't mean that GE went up 5 points. Sure, you can short stocks in a declining market, but the average investor isn't too keen on the unlimited downside risk and probably doesn't even have the margin to be able to make the trade. Just remember that something is always guaranteed to go up in the currency market.

There are dozens of other reasons why the forex is one of the best playing fields in the investment world. If you are an investor, do some research and see for yourself. Open up a demo trading account at one of the several online forex brokers and see how you do. You might just find that it blows the stock market out of the water.

About the Author

This article is just a small piece of the free Forex Trading Course at Go learn about this incredible market and sign up today while the 30 day course is still free.

Forex Enterprise - A Full Review

A new marketing course to hit the internet by Nick Marks that advertises earnings of $1000 a day and $30,000 a month respectively. This turnkey system generating multiple streams of income is relatively new and so it is my pleasure to review it for you.

After purchasing you are given a login page where you are introduced to the system which is in website format. Everything is easy to access and well organized.

After Nick gives you a little pep talk about positive thinking and goal setting, you will be introduced to his first recommendation: join Coastal Vacations. While not a part of his main Forex system this is a recommendation I could've done without.

In the pay per click section you are given a large list of keywords that Nick found convert really well with his system. Some of the keywords in the list have bid prices already attached to them so you can get front page exposure.

The course also has $50 in free adwords credit that unfortunately only works with new accounts so I was out of luck. If you don't already have an account this is worth the price of the course alone.

The forex course shows you some inexpensive traffic methods and provides links to these sources. He also covers stuff like pop-over ads, e-mail lists and autoresponders. Not bad information by any means, and is an alternative to pay per click advertising if you have a smaller budget.

He has an ebook package that seemed like it was going to be really cool as there were dozens of bonus ebooks and software programs covering everything from creating ebooks and website templates, to getting top positions in the major search engines.

As I took a closer look at this package I realized there were some bargain bin informational products included. However, there were also alot of goodies in there as well that I found rather useful. You get so many ebooks and software in here that it really is worth far more than the price of the course.

There is a section on becoming an Ebay power seller in 90 days that goes into a fair amount of detail and wasn't bad. However, Ebay isn't something I have ever been particularly interested in doing. There is also a section on baccarat strategies that I had no interest in.

One of the last sections of his course introduces you to e-currency exchanging using the DXINONE system. It is a great way to acquaint yourself with this increasingly popular opportunity without having to buy standalone e-currency courses which can cost a couple hundred dollars.

The author has combined several effective ways to earn money online and rolled them all into one course. While I didn't jump up and down about all of his strategies, the free ebooks, software, and adwords credit make Forex Enterprise worth the money.


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