3 Key Factors That Make Currencies Better Than Stocks

For many people the stock market is recognized as a legitimate investment alternative, while the Forex market is considered a scam. Reading this article really should help you realize that, for several reasons, the currency market is a better investment alternative. Read more and take your conclusions...

1. There is a huge volume of positions.

There is a huge volume of positions traded every day in the Forex market, around 1 trillion dollars, that means the currency market is a very liquid market and you can get in and out of your positions at no time. How many of you have traded stocks and have not been able to get out of your positions when you wanted; just because there was not enough volume in the market.

Another benefit, of the huge volume of positions, is that individual entities (banks, funds, traders, countries, etc.) can't have significant influence in the market. We are all equal in the eyes of the currency market. Do you think no one can influence stock prices?

2. Countries don't go out of business.

Do you remember Enron or many of the internet companies that crashed when the dot-com bubble exploded? Currencies are based on the strength and stability of whole countries; big economies. Although countries face economic crisis, from time to time, they usually recover. It is harder for a country to disappear than for a company to face bankruptcy.

3. In the Forex market you can profit in up and down markets.

You can profit from currencies when a country is in a strong and stable economic period. But if things go wrong, and they face a crisis, you can profit even more. One advantage of trading currencies over stocks is that you can win money in good and bad economic environments. You won't have to fear a recession ever again.

Think about the points above stated. In doing so, you will realize why Forex trading is such a good investment alternative.

Trading currencies can be a rewarding occupation. Anyone with determination and the right information can learn how to trade. The only thing you need is good mechanical system with positive expectancy, sound money management rules, and above all self-discipline.

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