Another important factor is that due to the global economic crisis, the Forex market is in its best time to invest, because the volatility so evident in the foreign exchange crisis, generates higher profits for trader. These would be the 2 main advantages of investing in this market, but the greater risk that an trader can take in Forex is to trade without knowing what you are doing, without receiving special education and believe it is a game of chance. Now, here we present many other market advantages and disadvantages as well as at the University of Forex consider it important to be clear and honest with the traders and users before investing.
Advantages of Forex:
• It's a liquid market: as already mentioned, Forex is a liquid market for the many large operations that are performed daily. Billions of dollars are traded daily.
• Access the day: It is available to trade 24 hours a day. Monday to Friday.
• A desentralizado market and has global access: You can trade from anywhere in the world and in any location. You only need an internet connection. In other financial markets if there is only one physical location to trade.
• No high fees or additional costs: At this point if we stop to explain: The Forex is transaction costs much lower than other investment markets, so you should consider the commissions to the broker or intermediary companies that manage their capital, if applicable. There are no fees for services. There are no additional costs when trading, but it is important to know that if you want to be a successful trader, you should spend on education and specialized courses in Forex strategies.
• A transparent market: Due to multi day market movement, it is virtually impossible to market manipulation.
• There are no forced deadlines: traders of other financial markets are constrained by having to comply with a particular extension in time. In the FOREX market, however, a position can remain open as long as the trader-investor deems necessary.
• A leveraged market: I mean, you can take leverage when investing their money, which means that a broker with solid finances lends money for investment and profit is greater. Leverage allows the trader to enter the Forex market with just one hundredth of what he has invested.
You can trade from:
• 2:1 = $ 1 you pay $ 2
• 10:1 = $ 1 you pay $ 10
• 100:1 = $ 1 you pay $ 100
• 200:1 = $ 1 you pay $ 200
• 400:1 = $ 1 you pay $ 400
• There is plenty of free and paid courses to train: There are many experts Forex traders on the web, which provide specialized education and even video demonstrations to learn how to trade. You can also open a demo account for you to start operations before opening a practice account with real money. Forex In college we strive to provide adequate education and specialized, we have free courses, forums, articles, virtual classrooms and other services for you to be a skilled trader to trade properly and getting steady gains.
Disadvantages of Forex:
• Runs the risk of choosing an inexperienced broker: On the web there are many unscrupulous people who are dedicated to defraud honest people. is important when investing your money is sure to have the support of a reliable broker, they usually must be properly registered, including some firms requested that the broker have made at least 100 successful operations. Also do not forget that in the United States, the broker must be registered with the CFTC, which means for its acronym in English (Commodities Futures Trading Commission - Committee on Trade in Goods Fixed Term) or as members of the NFA (National Futures Association - National Futures Association). You can also check with Consumer Protection Office depending on your country of origin and cyber laws thereof.
• As mentioned, you can take leverage, which allows you to enter the market with a larger capital, if the operations are successful and use good strategies get better returns but if the opposite happens, you could lose all your money .
• Requires knowledge and time: If you know the market, may enter without having the knowledge necessary to trade and lose money. If you manage change and train, this ceases to be a disadvantage. Also if you do not have enough time to get in front of the computer to monitor market movements, may end up losing more than you think. If this is the case it would not be a disadvantage if you take the signal service to the University of Forex offers. In this service, an experienced trader will monitor and analyze the market and then to send their results and it signals to buy or sell directly to you.
• It has a complex nature: techniques of market analysis are complex and the implementation of strategies, requires much training and education. The currency exchange rates are influenced by a variety of factors, which may fluctuate over time.
• One winner is a loser: unfortunately there is always a loser and you may have some operations in its early losses, but then start making profits.
Being a bit more specific, there are two ways to invest your money in Forex, both have their advantages and disadvantages, so you need to choose which best fits your needs, to avoid failures:
1. trading your own capital.
2. Giving capital to a company specialized Intermediate.
1. tradng its own capital:
Advantages:
• You can devote himself to a career as a Forex trader and expert.
• You can get unlimited income according to his ability, if you use the best strategies.
• You can enter the market with a small investment.
Disadvantages:
• If a novice can lose all your capital, not having a proper education.
• To become a skilled trader it may take more than 1 year before their education begins to show positive results.
• It requires dedication and time.
• You must invest in education, some capital.
• In its early trading losses you may have.
2. Giving capital to a company specialized Intermediate.
Advantages:
• You do not need special knowledge and experience.
• The potential for losses are lower because their capital is traded by Forex experts.
• You can forget about the management of emotions and psychology since the trader does not tradee directly. Another suffer for you.
• Your capital can make big profits quickly.
Disadvantages:
• There are unscrupulous companies that are dedicated to defraud people. You must be sure the company you trust.
• The company does not provide a guarantee of profits.
• The amounts to accounts are usually higher. Sometimes a minimum of U.S. $ 10.000.
vyd2Recuerde that Forex is a market full of opportunities but also risks, especially for inexperienced traders and those who are not disciplined to receive education and invest time. It is very complex to trade in this market and currency volatility is very high, so the chances of losing all the money invested are very high for new entrants, but by using appropriate strategies and several indicators at once, you can get profits.
