Of course, each kind of trading (futures, currencies, stocks, etc.) has it's own value. However, I believe that forex has some distinct qualities that set it apart from the other forms of trading. When we're done, I think you'll agree . . .
1) Forex trading isn't connected to just one country. First, every currency pair is tied to two countries. Second, you have a whole mess of currency pairs to choose from.
So, you definitely have more stability in that way. (And believe me, stability in the world of finance is rather important.) But there are more benefits to forex. Let's move on.
2) Most new forex traders trade extremely risky. It's incredible. They also use accounts that are way too small for the size of lot that they are trading. This gives their account an unbearably high beta.
However, when done right, you're account beta will be low. In fact, it will be much lower than the stock trader's account beta. (In case you don't know, beta refers to how volatile your account is. If it rapidly gains and loses, it will have a high beta.)
A low beta means that your account is stable. You're money isn't going anywhere. It's slowly growing. That's the best thing it could do.
3) Last, due to the size of the forex market, it cannot be controlled by any one entity. Sure a country's central bank could manipulate a currency. So you just trade another.
Naturally, your broker could play games with you. Choose another broker. That's all there is to it. There will never be anything like the Hunt brothers and the silver market.
Do you want to learn more about how I trade? I have just completed my brand new guide, "Forex Trading - What Finally Worked For Me".
Download it free here: Forex Trading
Nathan Pennington is a forex trader and the author of Winning Forex Trading -THE Definitive Guide
Source: www.articledashboard.com
