There are multiple ways to get started in trading in order to earn additional income or even making it your main income. This blog is dedicated to three ways of trading which will be covered step by step with each post. I will seek to cover
What is Forex?
Forex stands for Foreign Exchange and it is essentially the buying and selling of different foreign currencies. So when someone mentions Forex they are speaking of the global money market. The Forex market is extremely huge with about USD$1.49 Trillion being traded on average daily. The NYSE (New York Stock Exchange) pales in comparison to the Giant Forex Market.
Some Advantages of Trading Forex
The monster Forex market is opened 24hrs, 6 days per week giving each trader flexibility in making money from buying and selling. With such huge volume of money being traded daily it creates what is called liquidity which enables speedy execution of trades at any point within the trading days. The Forex market doesn't limit the amount of cash you start trading with or the amount of each currency that you can buy and or sell. A lot of leverage is involved that allows you greater buying or selling potential.
The Forex Market opens Sunday evening with the Australian Market taking first watch then follows the Japan mark. The Euro and Swiss market opens before the London market and the USA market completes the loop. For specific times please see the Forex clock on this blog or you can visit the following link
With the overlapping of the markets as shown on the clock it gives the Forex world a continuous run for six days straight and closes out Friday evening.
Forex vs Stocks
Due to the opening times of each market forex give you more time to trade. the stock market such as NYSE only opens for a few hours throughout the 5 day work week. the only day that the Forex market is close is Saturday. With the stock market you have to purchase a minimum amount of each company shares which limit your starting capital while with Forex there's no minimum amount to purchase. With Forex all orders are filled instantaneous while orders on the stock market will take some time. The Forex Market if so Huge that there's no one entity controlling everything as opposed to the stock market where there are particular major influences of stock movements.
Please keep in mind that due to the liquidity of the Forex market it makes it pretty risky which is easy for you to lose all your invested capital and as such you should proceed with caution but still proceed. No risk = no reward. It would be in your best interest to get a demo account going and be comfortable trading before you risk your own hard earned cash. After all a demo account is risk-free trading on a live market.