There are several different ways to trade but these days it seems everyone is talking about Forex and currency trading. Check out these three reasons why it beats stock trading.
Profits in a Bear or Bull Market
Currency can bring growth during both a bull and bear market which is one of the three reasons why it beats stock trading. There is no short selling restrictions and there is profit potential no matter where the market is going. With Forex you sell on currency and then buy another. Even in fluctuating markets a trader has the ability to profit in both short and long positions.
50 Times More Leverage Than Stocks
It quickly becomes apparent why you want to go with currency trading over stock trading another reason why it beats stock trading. Foreign exchange trading with Forex will land you up to 50 times the leverage of what your stock accounts can do.
Diversity Here Is Like No Other
Forex can offer a broad diversity. The balance of trade between nations is detrimental to the value of the currencies. If a nation imports more than it exports it will have a deficit trade balance which is considered not favorable to currency value. So you see currency trading beats stock trading.
A prudent investor will know that they need to diversify their US dollar balance through holding a variety of currencies which can be somewhat challenging since almost all US banks offer only a few other currencies. Through Forex and foreign currency trading you can control hundreds of thousand of dollars worth of currencies that will give you more than 50 times the leverage of the stock market which again proves why the currency trading beats stock trading.
Open For Business 24 Hours A Day 7 Days A Week
You can trade Forex 24 hours a day 365 days a year. Your trading can start at 5:00 PM EST with markets in Sidney and Singapore. Only a few hours later Tokyo opens up, next is London opening at 2:00 AM EST and soon New York with it’s world currency markets have already been open for 15 hours. The stock market offers you no such easy access which is why currency trading beats stock trading. In fact Forex is the largest, most liquid market, open 24 hours a day for trade.
You’ve got 3 reasons why currency trading beats stock trading but there are plenty of others.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author's information with live links only.)