Because leverage gives people infinite possibilities.
At the same time, leverage multiplies risk.
If you can not properly handle the power of leverage, it is likely to lead to the explosion of positions and other situations.
And a trader who learns to use the rules of leverage properly can make enough profit from the market.
Therein lies the joy and power of forex trading.
Forex is increasingly traded. What are its advantages over other investment products?
Nowadays, people pay more and more attention to investment. Among the investment products, many people prefer foreign exchange investment because it has its own advantages.
Advantage one: the easy control of foreign exchange trading risk.
The first rule of any investment is to avoid risk and preserve the principal.
A stop-loss price can be set for each trade, depending on the market and the acceptable level of loss.
When the price reaches your minimum stop-loss price, the trade automatically stops, preventing too much damage to the principal.
The risks are easy to control, but the returns are unlimited.
Advantage two: open and transparent market environment.
Relative to equity markets, the foreign exchange market, while not perfect, is arguably the cleanest and most transparent.
Investors do not worry about the performance of each stock. There is no “insider trading”.
What Soros can learn, the average investor can learn.
With a daily turnover of $600 billion in the currency market, no institution is in a position to dominate.
Advantage three: flexible time, see the price is a deal, will not be covered.
Trading 24 hours a day, off-duty spare time can be easily at any time to build positions, and do not have to worry about because of the limit of the limit to undertake.
Advantage four: short – term volatility of infinite profit opportunities, between the changes are everywhere.
You don’t have to worry about how much profit you make every day, because there are opportunities to add up small wins to big wins, and over the course of a year, short-term profits can be quite substantial.
It’s like guarding a mountain of gold, see how much digging every day.
Advantage five: to do large transactions with small funds, leverage to small broad.
Because trading is the international mainstream way of foreign exchange trading, the power is infinite two-way trading, more opportunities to make money.
Stock INVESTMENT GOES UP ABILITY TO MAKE MONEY ONLY, AND FOREIGN EXCHANGE CAN BUY GO UP, ALSO CAN BUY FALL, WANT TO CHOOSE RIGHT TRADE DIRECTION TO BE ABLE TO MAKE MONEY ONLY.
In the stock market short market time is much more than long market time, investment opportunities are not easy to grasp.