The sheer size of the Forex (almost three trillion dollars traded on a daily basis) doesn’t present a real picture of the market. International enterprises and banks trade a significant portion (95%) of that amount. Speculators trade only about five percent of the total amount. However, speculators are those that take on the highest risk due to the nature of the speculation. To avoid being one of the speculators , try always to look for genuine reviews, like Q Profit System review, where you could read accurate information so you could reach your own conclusion.
You will enter the Foreign Exchange as a speculator, and the risks you will have to deal with are enormous. The majority of new traders tend to lose their investments and give up, but you will persevere. You will succeed on the Forex because you will learn all the advantages and disadvantages of trading in this market and you will learn from those as well.
Advantages of the Forex over other markets
The volume of the trade on Forex is several hundred times larger than the size of the other markets, and this means that the amount of liquidity it offers is excellent when compared to others. This allows a trader to enter and exit a position within several seconds and this gives you an advantage that can make a difference between loss and profit.
The value of the majority of currencies is quite strong, and thus it doesn’t fluctuate which means that you can’t experience losses due to unexpected value change. But that doesn’t mean that the direction in which the value moves won’t change as many factors shape it. It still isn’t as bad as stock market where even one new company that releases their shares can change the value of multiple stocks. For example, if Detoxic entered the stock market it would cause changes in over a dozen other stocks due to their connection to the industry to which this product belongs.
The complexity of the Forex
Those that want to abandon their jobs and focus on Forex should know that this can’t be just a hobby. If you want to make a lot of money in this market, then you will have to turn it into full-time work. This means investing eight or more hours into research that will result in favorable trades.
The value of a currency is determined by many factors apart from supply and demand, and it includes many macroeconomic factors. You will need several monitors and a lot of knowledge to locate and recognize events and news that will affect the value of a particular currency.