Advantages in Forex currency trading

Equal Prospective in Rising or Falling Market Trend

There is no structural bias to the market and there are no restrictions on short selling in FX market. Trading in Forex gives you an equal prospective in rising and falling market.

As trades are always done in pair of currency pairs, Forex traders can always find chance to make money in anytime, regardless on the fall or rise period of one single country currency.

Trade Forex 24 hours a day

Forex market never sleeps. In Forex trading, you do not need to wait the market to open, you can always response to world latest movement and news immediately.

Every Sunday 5.00pm in New York, Forex market starts its week from Sydney, followed by Tokyo, Singapore, Hong Kong, London, and New York. In Forex tradng, you can always response to the market trend a lot faster than in any other trading market.

Also, with the flexibility of Forex market trading time, you can work on your trade in Forex during your free time. This means you can start small and work as part time trader before going full time on FX trading.

High Leverage Margin

Forex brokers offer trade margin of 50, 100, 150, or even 200 to 1 of trade margin.

Forex traders often find themselves controlling a huge sum of money with little cash outlay on the table. For example, a $1,000 in a 150:1 Forex account will gives you the purchase power of $150,000 in the currency market.

While certainly not for everyone, the substantial leverage available from online currency trading firms is a powerful, moneymaking tool. Rather than merely loading up on risk as many people incorrectly assume, leverage is essential in the Forex market.

This is because the average daily percentage move of a major currency is less than 1%, whereas a stock can easily have a 10% price move on any given day.

Why isTraders Lose Money in Forex..?

1. They Work Hard but don't Work Smart

Many new online currency traders work hard - but they don't acquire the right Forex education.

FOREX trading attracts some of the cleverest people in the world - these traders are smart, and think that they can win simply because they're clever.

Being too smart however, can be a bad trait to have in Forex trading.

2. They don't keep it Simple

As you can gather from point 1, being clever doesn't mean you'll achieve success in online Forex trading. Not only should you leave your ego behind, you should also concentrate on trading using a simple system. Many Forex traders think the more complicated their system is, the more successful the system is likely to be - however, this logic is incorrect.

3. They don't accept Responsibility

When you're trading currencies, it's tempting to follow a guru whose made money - or claims to have made money.

The Internet is full of Forex education you can buy for $100 or so - and they all claim it'll make you rich - but this is not the reality of currency trading.

The only way to succeed is to rely on yourself - no one else can give you success. If you can't take responsibility for your actions - don't trade in the currency markets.

4. They're too subjective

In Forex trading, most traders like to use technical analysis, and study Forex charts.

Studying charts can make you a lot of money - however you must be aware of the trap that many traders fall into - being too subjective.

5. They lack Patience

Many traders get impatient when Forex trading, and want to achieve success too quickly.

They start trading using one method, get frustrated with it when it doesn't make money - and then switch to a different method. They then end up like a dog continually chasing its tail.

Bad periods are normally followed by good trading periods - and profits, (if you're using a soundly based Forex trading system) so you need to stick to your plan.

Stop changing systems and have the patience to follow your Forex signals with discipline.