Why Trading Forex Now Beats The Stock Market

Why Trading Forex Now Beats The Stock Market

You've likely heard the term currency exchange lately - it is becoming one of the hottest trading trends in the markets today. That's a trend we suspect will continue but today, I would have liked to take some moments to identify why as well as why you should exploit trading foreign currencies.

Just a couple of years back, the foreign-exchange markets were dominated by the giant brokers and major banks around the world. Today, the 'little guys' have gotten in on the action - and the growth in currency trading has increased from $1.9 trillion to nearly $3 trillion in that short space of time ( that's the median daily turnover in the markets - a 50% expansion in turnover ).

But why should you trade Forex?

First, the currency exchange markets are highly liquid ( in the major pairs ) and have a powerful disposition to 'trend' regardless of what has happened in other markets ( stocks, commodities, bonds ).

That liquidity also creates incessant volatility - and the volatility is where the ability to profit from those trends occurs. The larger the volatility, the bigger the profit potential.

second, the stock markets have been beaten down, rallied, fallen, rallied - and there are robust suggestions that another 'fall' is coming. The doubt in these markets is keeping them from a specific direction, or trend. In the forex markets , however , traders do not need to fret about'bull' or'bear' markets - the currencies are always in a trend ( whether up, down or sideways ).

similarly, the financial upheaval driven by the credit crisis and the large executive responses means investing or trading in the stock markets will never be the same - but these same events helped to create even bigger opportunities in the foreign exchange markets.

currency trading isn't without any risk - and frankly, the general public approach the forex markets absolutely inaccurate. The present commercial and financial conditions make this one of the finest times to take on foreign exchange trading, but only if done right.

35+ year trading veteran and currency exchange teacher, Bill Poulos, has lately released a new video on the RIGHT way to approach trading currency exchange.

See, most traders go into forex trading with the idea of getting rich quick. And they come out pretty poor.

What Bill shows you is how to get into trading forex by handling risk FIRST and taking profits SECOND. It's completely turning the currency exchange community the wrong way up.