First we highlight the advantages:
- Low cost of entry: We must take into account the need to have a PC, an Internet connection and some magazines economic expert subscription. Nothing else.
- Low tax: Regardless of country of residence, the Forex offers a tax on lower capital gains than labor income; on average, in fact, taxing the Forex is 20% in Western countries.
First opening hours, which again goes from Sunday to next Friday; then the possibility of not having to go to a physical location, any action can be done from home; is then the more liquid the world market, and moreover, no professional figure above you.
However, these advantages can be exploited and taken in their favor only if behind there is a solid basis, aspects of character we saw in the previous article and a desire to constantly improve.
For an investor must have a currency market than others?
We continue our analysis on the long list of advantages that the Forex market offers its "followers". For an investor must have a currency market than others, like, what the bank? Another strong point of the forex market are spending.
There are no other fees, transaction costs, under normal market conditions, is usually less than 10 pips. Since Forex is a liquid market, you can sell or buy almost unlimited amounts of coins to a standard market price. So while the futures and stock markets, for example, are very unstable and can change only a limited amount of value in a particular time and for a fixed price, this is not the case of currency markets.
Forex is safe
Only this high liquidity allows trade in 24 hours from Sunday evening to Friday evening. That is why the Forex can be done safely, every day, at home, even at the end of their work, in an attempt to protect other additional revenues.
Forex disadvantages
Not only the benefits, however; the Forex market as well as any other instrument or financial market, also has disadvantages, or at least of the risks that should be taken into account and be able to manage.
- Stress: Trading activity, and an activity that leads to the management of their assets and their savings, is an activity that generates fatigue, nervousness and tension that, in some cases, can even harm the serenity and tranquility of the psychological one person. This, then, occurs mainly in the case of very volatile markets which are constantly changing and the direction abruptly.
- PerdasAqui Management also support the concept of the psychology of traders. That's why we have a good and proper management of loss is of paramount importance to minimize the negative operations and to obtain later this month, a profit. The penalty? The total and rapid, reset the account.
- Risk Management: On the previous point, of course, is the risk management. Risk management, in fact, is crucial to a trader and must be connected at the time, availability and economic character of the merchant.
A question at this moment is spontaneous: the advantages or disadvantages prevail? Research indicates as 90-95% of private traders in the market are not profitable; This, however, is not scary. The causes are not hard to understand; often, in fact, what is missing in order to be profitable is the lack of an adequate theoretical basis and a very fragile character involving a poor management of open positions or orders.