With the explosion of trading opportunities in the last two decades, financial markets are now more accessible than ever. This leaves many people with the difficult task of selecting the right market for them. Before committing their time and resources, potential traders must consider the pros and cons of each financial market. Forex trading is a market that is both easy to learn and happens to be flexible. More so, if you understand the Elliott wave cycle. If you are still not convinced to tap into forex trading, reading the following benefits of forex trading will definitely change your mind:
• It's For Everyone
As commonly assumed, forex trading isn’t just for the wealthy. Almost everyone can dive into forex trading and make the most of it. Forex trading is easy to get started. This is part of the reason it appeals to so many people around the world. Forex trading is affordable even for those with little capital. There are so many reliable services that allow you to set up an account with as low as 500 dollars, leveraging nearly 1:1500.
Albeit critical, setting an account is the first step. It will take considerable time and learning of theories like the Elliott wave cycle to master the art of forex trading.
• Hight Liquidity
The Forex market is capable of handling transactions, even if the volume exceeds 1.5 trillion dollars per day. This is quite a large volume, to say the least. If a trader wants to buy, there's always a seller available. And if he or she wants to sell, there's always a buyer available. In simple words, liquidity is never going to be a problem in the world of forex trading.
• 24-Hours Market
Foreign exchange (FX) stays open from 5 pm EST Sunday through 4 pm EST Friday. Forex transactions are done between parties directly, online (OTC) rather than through a central trading platform, which is another tell-tale indication that forex is truly an international market. Hence, you can take advantage of forex trading hours that are different from yours. Each day there are four main trading sessions.
• Trade The Highs & The Lows
You can trade regardless of whether the market is going up or down. High volatility periods are a favorite of some traders. These sudden price movements can be beneficial, even though they carry more risk. However, they can also be very profitable if you play it smart and know what is a wave of the Elliott Cycle. All in all, there are plenty of trading opportunities, whether you follow longer market trends or trade day-to-day movements.
• Demo Account with No Risk
To practice forex trading and learn how to trade, you can use a demo account. A demo account is exactly what it sounds like. It is great for people who want to get the feel of the market or improve their trading skills without risking real capital. We would encourage you to learn what is a wave in the Elliot cycle and execute the knowledge in the demo account.
• Superior Technology
Forex trading is relatively new compared to other markets such as those that manage stocks. That is why this market is technology-oriented. What’s more, IT experts continue to come up with sophisticated tools in order to add to the convenience of traders.
The Final Verdict
Commercial banks, investment banks, and central banks dominate forex trading. Many private investors trade on currency exchanges because of this. It is easier for them to access the market via technological innovations, such as the internet. Surely, after reading these benefits, it would be hard for you resist to tap into forex trading.