As promised in last Tuesday’s article “an Introduction to Investments in Forex Trading” (Forex stands for Foreign Exchange market, also known as currency market), today we will expand on that previous writing and offer the “Ultimate Guide to Forex Trading Investments”.
Whether investing in a Forex business is a complete new idea to you… OR
Whether you already were on the fence and contemplating the many advantages the Forex market has to offer…
This Ultimate Guide to Forex Trading Investments is here for you!
First of all, don’t hesitate to ask any questions down below! We would love to hear from you and what you think of this great business. As always, investing in a new field of investments requires its proper due diligence and we are to aid you with your inquiries and questions.
Secondly, let me explain what the purpose is of today’s article:
A) This article will provide a quick summary why Forex trading is such a great business environment.
B) This piece of writing will present a review why currency diversification is lucrative.
C) Last, but most importantly, the article will offer a thorough guide why investing in a Forex trading business is one the best methods in terms of yield and diversification versus traditional investment opportunities.
Benefits from Forex trading
The Forex market has significant advantages compared to other markets. These benefits are so exceptionally beneficial for trading that it makes the Forex market the best market to trade in. By far.
It is the place to be. There is not a single trading endeavor which is able to match it, but why is that?
1) The Forex market is the most liquid and has massive liquidity;
2) The Forex market has great and the best leverage opportunities;
3) The Forex market has a tremendous size with $5 trillion + daily volume;
4) The Forex market has massive price movements during the day due to its market size;
5) The Forex market has massive price movements almost every trading day;
6) The Forex market has plenty of trading opportunities by following only a couple of currency pairs;
7) The Forex market has many currency pair crosses allowing you to focus on and trade the weakest versus the strongest each day;
8) The Forex market has the best trading hours and is open 24 hours a day, 5 days a week;
9) The Forex market has no gaps during working days (because the market is open 24-5);
10) The Forex market has virtually guaranteed and respected stop losses due to its liquidity and lack of market closing hours (24-5);
11) The Forex market has no need to monitor hundreds and thousands of companies with all of their own charts, news releases, company profiles, etc;
12) The Forex market cannot be manipulated or “cornered” by any one player or market maker;
13) The Forex market offers tremendously small transaction costs for trading (usually $2 or less on $100k).
As shown above, a Forex trader is able to benefit from many advantages.
Are there actually any disadvantages of trading in the Forex market?
Yes of course. The number one drawback in Forex trading goes along with one of its greatest strengths: leverage.
Trading with leverage is great, if treated with proper treatment, care, caution, and patience. In that case it offers great opportunities. The danger kicks in when leverage is overused (too high levels).
No matter what level of leverage a trader uses, they are (almost) always forced to trade with a stop loss due to the need of protecting the trading capital, which entails its own risk.
That risk can, however, be mitigated by applying two corner stone concepts to your Forex trading business: sound risk and money management.
Luckily Winners Edge Trading has all the expertise in house to provide you with the best advice available, for free. Read more about Stop Losses and Leverage, Taking Profit, Money Management, Risk Management, and Trade Management by clicking on the links.
Before we continue with our Ultimate Guide to Forex Trading Investments, I want to make sure that everyone is on the same page with me. Is there anything that crosses your mind why Forex trading might not be beneficial?
Benefits from making an Investment in Currencies
You might wonder, why would I invest in a Forex trading investment? Why not buy stocks and just hold tight till the market goes up one day?
First of all, we have safely concluded that the Forex market is indeed the place to be. The advantages mentioned above should take away any and all doubts that Forex market is the best market for trading.
Secondly, there are various ways of capitalizing on the Forex market. This is the fun stuff and we thought you’d never ask!
Here are the benefits of diversification by investing in the currency market:
1) Think of currencies like the stock of a country. Investing in other currencies is actually similar to buying the stock of multiple companies;
2) All currencies have a certain default risk and inflation risk. Currencies allow you to hedge your asset holdings in 1 particular currency. Splitting your assets among more currencies decreases that risk;
3) Investing in stocks, bonds, and real estate are common ways to diversify a portfolio. The market place has globalized and the buying and hold strategy of 50 years ago has reached its limits and weaknesses. Adding currencies to the mix adds an extra layer of dynamic and possibilities;
4) Buying a currency allows for investment opportunities in that country, adding for another dimension and income opportunity.
All investors must minimize risk and maximize returns. And the points above are great benefits to decrease your risk exposure of your portfolio of assets. Investing in a basket of currencies (and metals as well) allows the investor to minimize risk.
You might be wondering: what about the return? That is where investing in a Forex trading business is lucrative!
Investing in a company which focuses on Forex trading allows you to maximize return! More on that later on in the article.
A quick recap of our Ultimate Guide to Forex Trading Investments: so far we have established that the Forex market is the best market in the world and that diversification via currencies lowers risk.
Benefits from making an Investment in a Forex trading company
First of all, I want to provide you with a short summary why a Forex trading business has many great advantages compared to other lines of business.
A Forex trading company has:
1) instant access to high levels of leverage (without any super lengthy approval procedures of banks);
2) a very high cash flow of the capital;
3) no need for any inventory or goods to be purchased, numbered, stored in warehouse, transported and/or shipped;
4) great tax advantages (in most countries);
5) no customers: it is just you and the market;
6) very low overhead costs: only a few employees, a computer and internet are sufficient;
7) no huge capital expenditure, as there is zero need for purchasing of heavy machinery or other big assets.
Of course, you could start your up your own Forex trading business. Many people do. And some do succeed. Most do not.
The biggest drawback in this approach is the lack of knowledge and experience. Yes, you are able to benefit from the above mentioned advantages, but only if you have sufficient knowledge and experience.
Know-how is key in the business called Forex trading. Without it you will not be able to capitalize on its potential rewards.
You have several options:
A) Ignore my advices and don’t maximize your return and minimize your risk;
B) Invest money, time and effort into learning the Forex trading business on your own;
C) Cooperate with a company which has the knowledge, experience and expertise in the Forex trading business and significantly shorten your path to success.
I guess you know my advice: ANSWER C is the best.
In yesterday’s post I explained why a mentor is an absolute MUST for you. Knowledge is power. Knowledge is profit. Knowledge is key. And experience is even MORE important!
Every professional athlete, such as a marathon runner or any other sport, has a coach. Every great manager has a career coach. All, I repeat ALL, successful Forex traders have mentors.
Read more here at “Forex trading seminar”.
Here are more benefits of cooperating and investing in a Forex trading company:
1) You have a stake in their expertise and first class know how of the currency market;
2) You will receive top notch and first class Forex trading education;
3) You can reap the rewards from their experience;
4) You can reap the rewards from their mentorship;
5) You will receive great rate of returns. Current yields are lower than low. Forex trading is great way of adding some hard needed Rate of Return to your portfolio;
6) By using controlled risk management, they can aim to maximize profit potential but minimize risk exposure;
7) The Forex market is the most efficient and liquid market in the world;
8) Price movements within Forex market allow for ample opportunity;
9) You do not have to learn the entire business yourself (which takes years of practice and study);
10) You do not have to spend 20,000 hours and more to master Forex trading.
There are different ways of cooperation between the investor and the Forex expert. The desired method of cooperation depends on a few factors such as:
- Your desired involvement: to you want to learn to become a very active trader or more of a passive trader?
- Your desired approach: do you want others to handle the trading for you?
- Your budget: how much can you invest?
- Your desired knowledge: in which topics you want to focus and specialize within the field of Forex trading?
All these aspects will determine which type of cooperation is the best option between you the investor and your Forex mentor.
We hoped that you have enjoyed this “Ultimate Guide to Forex Trading Investments.”
Conducting Foreign Exchange trading is a simple activity. This however does not make it an easy business to conduct.
A well know saying in the Forex business is this: “Trading Forex is the most difficult way to earn money easily”.
As with everything in life, mastering an art takes time, effort, devotion of the highest degree. Trading Forex is an art and cannot be learned in two hours or less.
To succeed in Forex trading requires that they treat their business with the same conduct and behavior as the best professional athletes, managers, entrepreneurs, etc: with iron discipline and great management.
Seek a Forex professional that will support your quest of success: Winners Edge Trading.
At Winners Edge Trading we would be honored and proud to be your mentor and guide.
As our mentor, you will have access to the best resources EVER in the field of Forex trading.
Don’t be foolish and naïve, prepare yourself for your Forex career by getting the best coach and mentor ever: Winners Edge Trading.
We are here for you: http://winnersedgetrading.com/spot/forex-services/
This Ultimate Guide to Forex Trading Investments was brought to you by Winners Edge Trading.
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