Trade Stocks Or Trade Forex?

Why trade stocks? Why invest so much money for an often small return, when you can invest as little as $300 and make much bigger money? There are people who turned a couple thousand dollars into over a million in just few months. How did they do it?

The answer is through Forex, one of the biggest markets in the world. Forex is an international foreign exchange market where foreign currencies are traded. This market can bring huge profit with very little investment. Yes, it can be a risky market, but isn't that the case with other traded markets too?

First, before you start, you must have the required knowledge, and be willing to follow some key rules. In this business, there are no shortcuts. It doesn't mean that the knowledge required before live trading is something few people can learn. Anybody who is committed to do this can learn and succeed. Isn't that the case with any other business? The difference is that other businesses rarely can bring returns that are even close to Forex.

Unfortunately, many Forex traders try to get rich overnight, and would rather count on luck rather than putting some time in studies and practice. This is probably happening because of the lure of a huge potential return. People become greedy from the very beginning.

The best way to learn is to search for extremely successful Forex traders and to learn from them. Although you need to follow what they say, you will also need to add some uniqueness into your trading style, some things that you will discover that work the best for you. That is why practice is very important before entering into live trading.

Another positive thing is that today there are more and more expert advisors for Forex trading. By using these expert advisors, you can trade on autopilot with no or very little intervention from your side. You just have to be careful, determine which Expert Advisors are really good, and test their systems before going into live trading.

The hardest part of Forex trading is to find a good broker. Be very careful, and open several practice accounts by different brokers before choosing one. Get into the Forex groups and see what average individuals are saying about the brokers that you are considering. Some of them are good for certain time and then start to use their "techniques" against you. If that happens, change them. You are not attached to them for life. Once you decide to go live, buy/sell with very small amounts until you gain experience and you are confident that you can trust your broker.

One of the best advantages in Forex is that the FX market is open 24 hours a day, and a stop loss is 99% guaranteed by almost every broker. If you let your trade run, or have an entry order, you can be almost 100% sure that you are risking only the amount you want to risk.

Happy Trading!

Fx_World writes about Forex Automated Trading. You can learn more about the best Forex Automated System today by visiting: http://www.forexabundance.com/
By Mikica Panic