Reasons You Should Trade FX

[adamsmith]

The global forex market has been increasing in appeal to a lot of people ever since 2002, when a slide in the global dollar prices had begun. With time and over the decade, the interest saw expansion, and ultimately it became an established and popular means of making money. It is a round-the-clock affair, with a market always open somewhere. Below is a compiled list of ‘why’ things to read that’ll further convert all the skeptics out there and make them rush to join the fray:

(Shared by fibo group).

 

·         The Size of the Market: FX can be called the largest financial market by size. It is also tremendously liquid in nature, which enables an investor to start and stop positions with a lot of ease. And he can do it without having to worry about the price increasing in a speedy manner, before one could actually get to execute one’s trade. Also, the size of the market makes it much more difficult for one particular entity to try and successfully corner the market; which means that analyses of supply and demand are likely to be spot-on most of the time.

 

·         Difficulty Level: One doesn’t need a voluminous amount of capital to start off in FX.  Any amount, even one as less as €300. The benefits offered by the currency market make sure that you end up with handsome returns regardless of the ‘start-up capital’.

 

·         Potential of Profit:  When it comes to profit potential, there is very little space in the share market to be disappointed about. Regardless of the market price movements, one can make money by making use of the ‘take profit’ and ‘stop loss’ options (which most FX trading platforms offer) on the go.  In case a currency pair is rising upwards, all one has to do, is purchase it. And if you think a currency pair is going down, it needs to be sold off. Too easy.

 

·         Tax Advantages: As of now, short-term capital gains are taxed at the current tax rate, and long-term capital gains are taxed at just over 16 percent, give or take a few percentage points. In the Forex market, however, rules say that the first forty-percent of your profits, whether short or long term, would be taxed as short-term capital gains, and the rest as long term. Sounds good, right?

 

·         Hours: The stock market ‘never sleeps’. Transactions and trading occurs there over 24 hours a day. This means, that regardless of the time at which one chooses to trade, currencies are always available.

[pepy]

As for the tax, it is partially true or at least it is different to each country where you live some taxing higher while others lower than that. Also for difficulty level, well forex is one of the most dynamic market ever with big size so it is difficult like others, even with low barrier but the potential of you to lose your money is big.

[myregister]

Tax for sure is the real deal to for many traders including me, aside from that i prefer of its borderless issue. The next thing is that why i should trade of course because profit in forex is big i mean the chance since its turnover is so big even if you try to combine stock and options.

[pepy]

@myregister Well turnover is a good excuse for someone to involved theirselves into foreign exchange, the other reason why we should trade in forex is because of its margin feature which help us to trade with smaller amount of money. I feel this is the other reason combined with people's willingness to earn money.

[myregister]

@sidejob: Yes, turnover is a nice excuse if you want to promote forex as a business which offers nice return per month, or tax advantages could be good because that is also a nice excuse to make forex looks like business friendly. The other thing why i should trade in fx is actually its flexible working hours you don't have to trade certain period.

[pepy]

That is not excuse that is fact and what really happens in forex. I know forex turnover is falling now but it it still big enough compared to stock and remember forex is a global thingy, so all people can participate as long as their account is accepted by broker and allowed  by their government.

[myregister]

Yes it is global thingy and there shouldn't be any excuse behind of it i just say excuse for the joking purpose, by the way flexibility is the top-list why we want to trade in forex, people plunge theirselves because they don't have to be like a worker who work in company where they must wake at this time and that time and must work 8 hours a day.

[pepy]

@myregister, the best reason behind this is all of course money, i don't doubt about it. I go to forex as my next part time job because i need more money and forex is worthy place for that. Not to mention i am sure that before you said that the reason people want to trade in forex because of profitability of forex, right? So it is clear the main part is forex availability to provide us chance to reap bigger profits.

[myregister]

Same here money and money and money. Let me ask you first, who doesn't love money? Next, the reason behind we trade in forex is money isn't it? But other business also offers the same way, so why do we need forex if there is other less risky business awating for us? Flexibility is another answer for me, it can gives me money and i can trade anywhere and anytime i want.

[Vaabum]

In fact, there are a lot of reasons for choosing this particular model to work with. But it is more important that the trader himself wants to learn and earn.

[Dora Wi]

15 hours ago, Vaabum said:

In fact, there are a lot of reasons for choosing this particular model to work with. But it is more important that the trader himself wants to learn and earn.

Indeed there are a lot of advantages, and the emphasis is on learning rather than earning since it can take a while to figure out how to make trading work for you. 

I would add, though, given the original post, that the forex market does sleep - it is open 24 hours but not every day, as exchanges are closed on weekends.

[Vaabum]

I think that everyone should understand the main reason - Forex is an opportunity to earn money. I think any trader understands this very well.