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Forex Market

Forex Market
by Tradingrichmom

Forex Market

Trading the forex market has many advantages over stock and commodity trading. To start with, the FOREX market is open 24 hours a day, 6 days a week. This means more opportunities for you to take advantage of, no matter what your style of trading consists of. Another reason the forex market is great to trade is because it has the lowest overall startup costs of any market, you can get started with as little as $ 250 in your trading account and begin trading micro lots to effectively manage your risk.

Still another big advantage to forex trading is that you will probably never have to experience market “slippage”, this occurs in commodity and stock trading when the price you enter or exit a security at “slips” to a different price in between when you enter the order and when it finally gets executed.

This can result in you getting in the market at a worse price than you expected and getting out of a trade with less profit or a bigger loss than you expected. The main reason this happens is because other markets have less liquidity than FOREX does, the forex market has more daily volume than all the other financial markets combined, this makes for dense liquidity and little, if any slippage.

Forex Trading is great for people with tight schedules or full time jobs. There is no need to be in front of you computer everyday during strict market hours that often occur when most people are at work. The forex market offers 3 distinct and active trading periods where there is enough volatility and price movement to effectively enter and exit trades. The Asian trading session begins with the Tokyo market open which occurs between 7:00pm-4:00am EDT, the London forex trading session occurs between 3:00am-12pm EDT, and the New York trading session occurs between 8:00am-5:00pm EDT. With multiple trading sessions for traders and investors to take advantage of, there are many more opportunities to deploy your trading strategy in the forex market as compared to other markets.

The forex market also offers very easy accessibility to trading software such as free charting packages and demo trading accounts. Forex trading on a demo account provides you with a great way to practice your forex strategies without any risk involved. You can generally keep your demo account open as long as you would like at most forex brokers, this way you can use play money until you are confident enough to try your hand at forex trading with real money. One caution to note about demo trading is that it does not involve the emotion or depth of experience as trading with real money does, so while demo trading is a great tool, it should not be used as a crutch out of fear of the inherent risk of trading. If you have been successfully demo trading forex for about 3 months, than it is likely time to move on and try your hand at the real deal.

Nial Fuller is a Respected Trader and Forex Coach. He runs a Forex Training and Education Website, Visit his site here Forex

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