Forex trading has become incredibly popular in recent years.
The fact is that the popularity has continued to increase even though other forms of trading, such as commodities and shares, have found themselves soaring in value.
Given the success of these other trading options, it’s easy to wonder why people choose to continue trading currency. The reasons are simple:
First of all, currency trading is flexible, instant and something that offers a wealth of options for all levels of the investor, from the most risk-averse to those who are willing to take a chance for potentially large gains.
Secondly, the forex market is very volatile, but that volatility is something that appeals to a lot of would-be investors.
Well-informed traders can enjoy large profits from a single investment over the course of just a few hours.
It is common for traders to enter and exit positions in less than a day so that they can build up large profits, and investors who are more risk-averse always have the option of holding long positions in traditional safe-havens.
Thirdly forex relies on comparative values and it is much simpler to analyze the markets than it is to predict what will happen with traditional stocks.
Fundamental analysis is important for both kinds of trading, but there are fewer choices in the foreign currency market, and this means that it is a popular form of entry-level trading.
Of course, any form of investing carries some risk, and it is important that beginners understand this and think carefully before they commit any money to a position in the markets.
Fortunately, all good trading platforms offer stop-loss options, so with the due diligence, it is possible to protect the vast majority of the value of your investment.
Online trading platforms such as Clicktrades (check Clicktrades review) allow people to learn trading in a safe environment and then once they feel comfortable with the currency markets they can dive into trading with real money.
You can learn to trade online using a demo account, fund a micro account with a small amount of money to experience real trading, and progress to a proper account once you are ready.
Learning how to trade forex using a demo account is fun, satisfying, and a great introduction to the complexities of the currency market.