With more than 2 trillion dollars US being traded each and every day, it would be to ones advantage to have a close look at getting involved in the business of currency trading. Once, only done by huge conglomerates, banks, governments and major corporations, now the sole operator or individual is taking the ball and running the Forex field with the big boys. Some serious plays are netting big rewards for the savvy player.
The accompanying selective information can lend one a basis of comparability on different investing modes by comparing other strategies with the Forex currency exchange.
Lets take for instance, trading Equities or Stocks. The Stock market has many fixed limitations as to the time frame by which one is able to place a buy or sell order. Forex, on the other hand, is available 24 hours a day. All one needs is a computer with internet access (broadband preferably), some detail knowledge and the ability to use logic and reason as opposed to emotion and whim to succeed.
Futures trading demands a person to pay fees as well as charges to a broker; whereas, Forex trading requires no charges to a broker and there are no trade fees involved. As with Stocks or Equities, again one is locked into time frames that dictate the timing of buy or sell orders, or how long they must hold a given contract. This is a clear restriction that can prove costly in terms of market fluctuation without the means to act upon those variations. In Forex there is always an instant exit strategy if things start to get crazy.
Within moments of the first sign of a variation or fluctuation in a currency pair, one can instantly alter their position and reap a profit or stave off a loss. This is true flexibility. As fast as the signal is carried via the internet the deal is done.
Many investors have looked to buying and selling real property as a means to attain financial freedom. In most cases, particularly in the wake of failing thrifts and the housing crisis, this has become a far more arduous task than once enjoyed. Now upfront cash is usually required to secure a loan to buy a property. In some cases as much as 30% of the purchase price on investment property is normal in today's market. This counts out the small investor in many cases. The average player doesn't have $30K laying around to flop down on a $100K property. With Forex, $500 dollars can get one in the game and position oneself well on their way to knocking down some heavy returns on investment (ROI). Real estate investment can devastate a healthy portfolio with one wrong move. Forex plays can go big or small depending on the risk tolerance of the individual.
Savings accounts and certificates of deposit are very safe investments one can indulge in if you seek low returns and long term deposit. Gains will be meager and risk will be very low. Boring and slow in this authors opinion. I have been there and done that and I would rather watch paint dry. If one seeks high rewards one must be willing to assume risk. Forex is volatile. No question about it. Forex can pay big too. No question about that either.
It should be abundantly clear to anyone who really wants to mop up in the world of finance that Forex should be a part of any wealth building strategy.
Let's examine some financial vehicles such as Annuities. An investor must always calculate the play based on a long term model. What are the costs to get into the annuity and what would a penalty be to exit early in the event that the investor had an emergency that required a liquidation. Always read the fine print. In almost every case the exit comes at a cost. Annuities are, for the most part, secure and safe with nice comfortable long term rewards. In many cases a term of at least 5 years is not uncommon. To withdraw funds prior to that timeline could eat up any gains one may realize, thus actually showing as a loss due to those funds having, in essence, remained stagnant for that time in stasis. Forex Trading; however, dosen't suffer from those sorts of scenarios. Easy in, easy out. Gain or loss depends on the calculated assumptions of the investor. Total control. The right Forex knowledge can make or break an investment strategy.
There are some very powerful tools that are available to assist the would be trader in their quest for Forex victory. Those tools are easy enough to obtain and for a small one time price these tools can have one well on their way to understanding and actually trading the Forex in as few as a couple of weeks. Many of them allow one to trade in mock money and learn the workings of the program as well as the market. How cool is that? Have a look at a few such programs on this site. Happy trading and best wishes on your journey to financial freedom once and for all.