Sunday, November 1, 2009

Profitable Trades in Forex

Currency trading compared to trading stocks gives you big advantages. The first real advantage is that the amount of money you need to trade is extremely small. With some brokers, as little as $100 allows you to control $10,000 of a currency. Compare that with purchasing stock on margin. If you were to purchase $10,000 in stock, you would have to have a minimum margin of $5,000. That's a huge difference and a giant advantage for you. The second advantage to currency trading is that the currencies often trend for weeks, months or sometimes even years. Just catch the trend and you're on your way to some nice profits.The third advantage is that currencies don't suddenly gap up or down with the news of the day as stocks do. There are no accounting problems, scandals, broker downgrades, earnings rumors, insider trading or take over bids. There are no new product announcements or balance sheet issues to worry about. Another big advantage is that you can trade currencies 24 hours a day, almost 6 days a week.

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