Opportunities in Forex Day Trading
Forex day trading is far superior to any other type of financial trading, such as stocks and futures. The foreign exchange market is open 24 hours a day so a forex trader has the freedom to choose which hours to trade. Unlike in stock trading where you select hundreds or even thousands of individual stocks, you can choose among the seven major currencies and dozens of minor currencies.
Not only that, forex trading is also relatively cheaper and easier to manage than stocks. With just a few hundred dollars, a forex trader can open a small account and start trading in currencies at brokers such as AVA FOREX and others.
Forex trading has superior liquidity than stocks trading. As the world's largest financial market, the foreign exchange market features narrow spreads and fair prices. The liquidity of forex trading does not decrease unlike in stocks trading since the former is open anytime of the day.
As a 24-hour global market, the foreign exchange market allows anyone to trade anytime he wants and have the ability to open and close trades within hours. During a typical day, the currency markets open one after the other following the rising of the sun. Forex trading volume reaches its highest point from 1pm GMT to 4pm GMT at a time when the US, European and British markets open simultaneously. Currency markets in Asia and the Pacific region subsides at a time when the American market peaks, but still allow traders to invest in profitable Asian currencies.
Forex trading gives the small-time, individual investor a lot of freedom and convenience to deal and trade currencies with fewer restrictions than stock market trading. You can easily make a living speculating on various foreign currencies. With superior leverage, you can control a financial portfolio hundreds of times bigger than your investment. These features make forex trading an attractive and feasible business enterprise.
There are numerous forex brokerage firms that can help you get started in forex trading, many of them based in the Internet. Almost all forex firms offer the same trading platforms and features, but don't get easily discouraged by this. They all share the advantages and benefits of forex trading such as always-open, round-the-clock trading ability, 100-to-1 leverage or better, very low commissions, among others.
Forex day trading can make you a lot of money quickly, especially when you open and close trades in less than a day, but if you are not careful, you will also lose money quickly. Always do your study and research before you perform your trades so that your investments will result in profits, not losses.