Forex Trading Guide                       Bookmark This Page

Forex trading Navigation



Forex Trading Training
Dollar Forex New Zealand
Forex Daytrading Alerts
Forex Volume
Best Forex Training
Mini Forex
Mini Forex Trading
Forex Broker Compare
Capital Forex
Forex Trading Seminar Atlanta
Day Trade Forex
Online Forex School
Forex Courses
How To Win At Forex Trading
Trading Forex
Forex Tutorial
Calculate C Forex Fisher
How Much To Risk Per Trade In Forex Trading
Forex Shipping
Forex Trading Strategy .com
Weekend Effect Forex
Concorde Forex Group
Currency Trading Forex
Forex Low Spreads
Forex Infomercial
Forex trading Links


2005 Best Seller!

forex strategy explained
Buy it now


Best Forex trading products


Private Investor Lending.
Private Investor lending program for loan officers.

Retire In Luxury For Pennies.
Retire early and reduce your cost-of-living by retiring in Mexico and living better than you do now!

Candle Stick Charting.
The Abc of Candle Stick Charting. Learn how to read and understand this amasing charting method.

The World's Best Investments!
This 70 page book will change the way you invest forever. Find out what the rich have known for years.

The Possessor System.
This system is the greatest and easiest moneymaker of our time. affiliates are in love with this program.


Main Forex trading resources

Forex trading

 

Welcome to Forex Trading Guide

Article

Investing in FOREX or investing in Stocks? Understand the benefits and risks of each Market
Ofer Shoshani

So, you have the money to invest, but you don’t know whether to buy Stocks or try something new, like FOREX for example.


Stocks


Before we describe what are the benefits of FOREX, lets remember what are Stocks. Stocks have been a popular investment for hundreds of years. Companies issue stocks to raise capital for expansion and new projects, and each share of the stock represents a partial ownership in the company. Basically speaking, when you buy stocks you invest in the company and in the market it is working in.


Hence, when the company does well and makes a profit, the value of the stocks rise and you can sell your shares for a profit or hold on to the stock for even more gain in the future. Sometimes companies will issue dividends – part of the profits that are distributed to share holders, another way for you to make a profit.


Stocks are traded on Stock exchanges. Most stocks are bought and sold through brokers (agents) who charge a commission or fee for this service. American stock exchanges include the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation System (NASDAQ). Most stocks are only listed on one exchange, although large companies may have listings on several exchanges.


Stocks were traditionally seen as long-term investments. So-called 'blue chip' stocks - those having proven value over many years - may form the backbone of an investment portfolio. Short-term traders (Day traders) exist, but it is a relatively new phenomenon made possible with the advent of Internet trading. Day traders attempt to take advantage of large daily fluctuations in the market by buying and selling many times in one trading period. It is relatively risky and broker commissions charged on each transaction reduce any profits realized.


Stocks may sometimes be bought on Margin, meaning that the investor borrows money to buy the stocks. Margin rates are usually around 50% - the investor can borrow as much as half the value of the stock.


FOREX


The Foreign Exchange Market (FOREX) is quite different from the stock exchange. In contrast to the stock exchange, the FOREX is primarily a short-term market. Most traders enter and exit deals within a 24-hour period – sometimes within a few minutes. Many FOREX trades can be made in one day without building up a large brokerage fee because FOREX trades are commission free; hence, you keep all of your profit. Brokers earn money by setting a spread – the difference between asking and selling prices.


FOREX is the largest financial market in the world. It is handles transactions worth $1.5 trillion every day ($1,500,000,000,000). By comparison, all the American stock exchanges combined handle daily transactions worth about $100 billion ($100,000,000,000), 15 times smaller than FOREX. It is not located in any one location, but in the virtual space of the Internet. Trading markets are located world-wide and because of difference in time-zones trades can be made 24 hours a day, 5 days a week. Trading begins in Sydney, Australia on Monday morning (Sunday afternoon New York time) and continues non-stop until Friday afternoon New York time.


The huge volume of FOREX and its around the clock availability, means that it is one of the most liquid markets in the world. There is always a buyer and seller for any type of currency because the world economy relies on the movement of goods from country to country. Stock exchanges have more limited trading hours. While it is possible to trade on exchanges worldwide, each exchange is independent and operates for just 7 hours a day. There is no way to buy or sell a certain stock that is only traded on one stock exchange when that exchange is closed.


FOREX has even more advantages compares to Stocks: It is more predictable than stocks, it follows well established trends, it allows high leverage – typically 100:1 instead of 2:1 on the stock market; and it doesn't require a large investment – mini accounts as small as $250 can get you started in FOREX.


The big question is what is Best for you? Are you looking for a Day-Trading constant activity, with its advantages, or a long-term investment. Know the answer and you know the nature of your next investment.


More FOREX articles can be found at http://forex.beyogi.com - The Foreign Exchange Market Explained.






About the author:
Ofer Shoshani is the Editor of beyogi (http://forex.beyogi.com) - The Foreign Exchange Market Explained where many more articles like this one can be found.





Forex trading News

Forex trading

Jan 09 - GBPJPY Decline Likely Extends Jan 08 - Trading Signals Buy Australian Against U.S. Dollar Jan 08 - Forex Trading Strategies Aggressively buy Japanese Yen Against US Dollar, British Pound, Swiss Franc, and Australian Dollar Jan 08 - EURUSD ...

Read more


GBPJPY Decline Likely Extends - DailyFx

Jan 08 - Trading Signals Buy Australian Against U.S. Dollar Jan 08 - Forex Trading Strategies Aggressively buy Japanese Yen Against US Dollar, British Pound, Swiss Franc, and Australian Dollar Jan 08 - EURUSD Resistance at Former Support Jan 07 ...

Read more


Trading Signals Buy Australian Against U.S. Dollar - DailyFx

(*) This is the password you need to enter the hotComm room, not your FXstreet.com user account password. Discussion of previous Special Reports on FXStreet: Perceiving Forex Volatility through Descriptive Statistics (Parts I and II) How can traders ...

Read more


How to Get Started Trading Forex - FXStreet.com

An increasing number of people are now turning to forex trading as a means of generating revenue. However there is a lot to learn, so with that in mind, here are some of the basics you should know before you even think about trading forex with real ...

Read more


A Few Things You Need To Know About Forex Trading - Best Syndication

Author : PFSoft Ltd. ZURICH, Switzerland , Jan. 8 /PRNewswire/ -- In close collaboration with PFSoft, Forexone has released the ProTrader private branded trading platform entitled FXInfinity TRADEMONSTER. "PFSoft turned out to be the ideal partner ...

Read more


Swiss FX Broker Forexone Releases New Forex Trading Platform from ... - Earthtimes

Rate two-way and presses to highs as stops above the 1.3580 area are cleared; more noted above 1.3660 and 1.3720. Cross-liquidation continues but rallies back hard as official bids absorb offers under the 1.3350 area yesterday. Traders note sovereign ...

Read more


EURO USD Forex Trading Tips and Analysis for Day Traders - Top News India

Veteran Turtle Trader, Russell Sands, Will Auto-Trade For You. $6K Minimum. 100% Guaranteed. Automate Your FOREX Trading and Explode Your Profits TODAY! Double Your Money Each and Every Month. FAP Robot Eliminates the Guess Work in FOREX Trading ...

Read more


Forex News Trading - Colleyville Courier

RIO DE JANEIRO (Dow Jones)--Brazil's real closed stronger against the U.S. dollar Friday, in a relatively calm market with low traded volume. The real closed stronger at BRL2.271 to the dollar on the Brazilian Mercantile and Futures Exchange, or BM&F ...

Read more


Brazil's Real Closes Stronger In Slim Trading Session - FXStreet.com

TOKYO, Jan 5 (Reuters) - The dollar held firm near a three-week high against the yen on Monday as risk appetite grew after Tokyo shares followed Wall Street higher on hopes for a recovery in the U.S. economy later in the year. The Nikkei share ...

Read more


FOREX-Dollar holds firm near 3-week high vs yen - Forbes

Save 0.5 pip / $5 on each trade when trading at the best brokers. Gold Prices Are High! Send Your Jewelery We Send A Check In 24 Hrs. MoneyForex's vision is to service individual and corporate investors such as money managers, banks, and financial ...

Read more


 

Home | Blog | Partners | Add UrlSite Directory | Search this Site  | Bookmark This Page