My purpose for writing this article is to demonstrate to you the advantages
of trading on the Forex market.
However, there is one myth that I want to dispel before I go further. The myth
is that there is a difference between trading and investing. To dispel that myth
I quote from Al Thomas, President of Williamsburg Investment Company, who wrote
"If It Doesn't Go Up, Don't Buy It". He said "Everyone who invests is a trader,
only the time period is different." It is a lesson that I took seriously after
taking a beating in the stock market in 2000.
So now, let's compare features of currency trading to those of stock and
commodity trading.
Liquidity - The Forex market is
the most liquid financial market in the world around 1.9 trillion dollars traded
everyday. The commodities market trades around 440 billion dollars a day, and
the US stock market trades around 200 billion dollars a day. This ensures better
trade execution and prevents market manipulation. It also ensures easily
executable trading.
