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Sunday, April 13, 2008

Forex Trading Vs. Stock Trading

By: Curtis L Wallace

Top Reasons Forex Trading is Preferred Over Stock Trading
If you are torn between investing in the stock market and forex trading. The following information might be helpful as you research a decision. Below is a list of seven reasons that stand behind the forex market as the more advantageous of the two opportunites.
• High Leverage up to 400:1
Although it can hurt you with out the proper strategy, the forex market provides the trader with 100 to 400 percent leverage. This will bring more profits per trade with little capital required.
• No middlemen
There are no extra parties between the trader and the buyer/seller of the currency. Due to no middlemen, fees are limited and time on transactions is significantly reduced.
• No commissions
The only fee that you can expect to pay is the spread from the brokerage. There are no transaction fees, no government fees, no clearing fees etc... This provides the trader with even more capital.
• Trade with real-time Profits
Trading in the forex market allows you to trade with your profits from your previous trade!
• Forex market open 24hrs a day and 6 days a week
Unlike the stock market, the forex market provides the opportunity to trade nearly anytime.
• Concentrate on a few currency pairs and not 8,000 individual stocks
This alone can save an ample amount of time. Stock traders have over 8,000 stocks to watch and research. Trading in the Forex market allows you, the trader, to trade with just a few currency pairs.
• Forex market is not easily influenced
The forex market can not be driven by media or expert opinions on what to invest in like the stock market. The Forex market is driven by global economic forces which is a much bigger spectrum and very hard to influence on the smaller scale.
These are just a select few reasons why any trader should consider, at the very least, to trade in the forex market. With the proper strategies, knowledge and discipline; financial freedom is at your doorstep. To learn more, I recommend visiting www.forexcess.net.

from : www.articlefeeder.com

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