Advantages of Forex Trading

Forex trading has many advantages over stocks trading, which makes it ideal for small individual investors and beginners.


1. Forex Trading has a fast trade execution and high liquidity

When you trade forex, that means you are trading in cash. There is no other form of investment that has more liquidity than cash, which makes these types of trades executable almost instantly. Forex Trading has no lag time, which makes this the ideal trade market for most anyone.


2. Forex Trading has no transaction costs.

Forex brokers do not have to deal with hidden fees as their pay is not based on the traditional commission based fees. The fee a forex broker gets paid is calculated directly from the trade from the bid ask spread. The difference that you pay for the currency and how much you sell it for is called the spread. Pips or points is how the spread is most commonly expressed.


3. Trading on the Forex market is a 24 hour event.

One of the greatest advantages of Forex trading is that it can be done at anytime of the day as it is open for business twenty-four hours a day. This is great for small individual investors who are just getting started with trading on the forex in their spare time. Being open twenty-four hours a day allows traders to work their schedule around different trading opportunities, making it possible to do their trading when it is convenient for them.


4. Forex Market is not easily influenced.

No one individual, fund, bank or government body can influence the forex market because it is such a large market. Forex trading is the total opposite of stocks trading. With stock trading, if there is even one negative television appraisal, a company's stock could be sent into a tailspin.

There are many benefits in forex trading that can not be found in other markets, making this perhaps the top sought after market among traders world wide. With trade locations located all over the world and the prime use of electronic transmissions, forex trading can be open twenty-four hours a day. Other trading is limited by opening and closing times, based on their locations in the world. With the market always being busy, you can be sure that there will always be a need for currency, so this is choice you can not go wrong with..

Welcome to Forex Trading Techniques

Forex Trading Techniques is a study in the variety of methods one can use to successfully trade in the foreign currency market. Forex trading has become a popular investment for the 'average' trader.

While this blog will post methods that are currently used to trade in the forex arena, it should not be considered a source of professional advice - as we ourselves currently fit in the role of the 'average' trader.

Please consult professional traders in your area (or online) for the best financial advice. Remember that forex investing can be risky - so invest at your own risk! And, always invest wisely.