Fifteen years ago, you would not hear about people trading on the Forex market—at least not real people. Until that time, only central banks, large hedge funds, and other financial giants like Warren Buffet could afford to dabble in the currencies markets. Today, however, the Forex is the most fluid market in the world with nearly 2 trillion dollars trading hands from Sunday through Friday afternoon—24 hours a day. Investors from all over the world are drawn to the Forex for the following reasons:
·Trading occurs 24 hours per day, 5 days a week so investors always have access to brokers and the ability to trade and make profit
·Online trading platform makes trading easy and most can be personalized to suit your particular trading style and needs
·Very large and liquid market making it easy to enter and exit positions
·Volatile market that is prone to rapid price fluctuations—and the potential to make big profits—or take a big loss!
·Trading is leveraged but brokers tend to offer very low margins (as little as 1% of the transaction total can be used as capital)
·No commission for trading—brokers make their money on the spread, or the difference between the ask and bid price
·Ability to set stop/loss points and limit potential loss while pursuing maximum profit
Basically, the Forex offers the thrill and chase you might find in Vegas along with the technical analysis and detective work people associate with Wall Street. As far as who actually trades on the Forex market, there are two basic groups emerging as the majority players:
1.29-39 yr. old, computer savvy professionals looking for an additional revenue stream with unlimited potential, a convenient and dynamic investment interface, and the ability to limit loss while maximizing opportunities. This group of investors tend to either have a degree or have taken some college courses. While many are putting some of the profits away for retirement, most investors in this demographic are looking for additional income to help pay bills, finance lifestyles, and perhaps pay off mortgages early.
2.Baby Boomers: That’s right, there are nearly 80 million official members of the baby boomer generation nearing 60 and thoughts of retirement. Only 25% report having $50,000 or more set aside for savings aside from their primary residence—and many are looking for a safe, secure way to boost retirement funds. The convenience of the Internet combined with the large potential for profit and limited risk make the Forex an increasingly attractive investment option for baby boomers hoping to add some real money to their retirement account in short order. Baby boomers especially love brokers who offer free demo accounts for the investor to learn the ins and outs of the Forex market before actually risking any money.
Like any investment tool, the Forex market presents risk for any potential investor. It is the risk that creates the opportunity for both profit and loss. And, like most investments, taking the time to do the homework and identify trends helps make more informed and guided decisions. For anyone looking to make a real boost in their income or retirement account, the Forex offers an opportunity to earn unlimited profits—but the losses can mount too so be sure to place stop/loss orders with any position to limit exposure.