Clever Profits From Forex Trading

Clever Profits From Forex Trading
Why Forex trading?This is probably one of the questions that you need areasonable answer. There are hundreds of investments out therethat you can prefer, but why go trading foreign currenciesinstead?Forex investment is unique in various aspects.Its trading volume is relatively huge compared to other market.It has extreme liquidity or the capability of either buying orselling the currency without causing significant movement in themarket price.It has the largest number and variety of traders.It is one of the markets that have long trading hours (24 hourseach day, except during weekends.Trading locations are almost everywhere, not just in the UnitedStates or major cities of Europe.There are different factors that affect foreign exchange rate.Another whooping fact that will make you excited to go on Forextrading: it has an average turnover in traditional foreignexchange market of around $1.88 trillion daily, according to theTriennial Central Bank Survey of the BIS (Bank for InternationalSettlements). Here are the daily averages of turnover on theForex market for the last 17 years:$500 billion (April 1989)$750 billion (April 1992)$1.18 trillion (April 1995)$1.48 trillion (April 1998)$1.16 trillion (April 2001)$1.88 trillion (April 2004)From the figures alone, you will notice that the average trendof Forex turnover is increasing. It is estimated to reach ashigh as 2 to 3 trillion dollars within the next 8 to 10 years,if the number of traders around the world will continue toincrease. As a matter of fact, everyone have the chance ofgetting a substantial slice of the Forex market wealth pie,especially that the Forex trading marketing is now on itsautomation process.The concept of automation becomes the new trend to the foreignexchange trading market. The Interbank spot Forex market hasalso considered switching to the automated method as well.There are several benefits that a Forex trader can derive fromautomated Forex trading. Here are some of such benefits andfigure out why Forex trading as well as other investments(futures and commodities) prefer the automated process.Through automated process, transactions can now be done in realtime. Although manual systems have existed for quite some timenow, it is difficult to achieve such benefit that the automatedForex system can offer to its traders. All of the trades canhappen within a few milliseconds and can be a big plus forautomated transactions against the manual system. In fact, thereare problems that are addressed using automated Forex tradingespecially if the trader is losing a few times in a row thatprevents him from making new trades. Such problem could beaddressed using the automatic trading system.With automated Forex trading, you will have a greaterdiversification. It means that you can trade in various marketsin different time zones at a time. You can execute trades withtraders from Singapore or London even it is already 12 midnightin the United States. This benefit allows you a multipleexchange model option. You can use varying trading models toevaluate short-term data. This means that you will be able topredict the trend for a shorter period of time, let us say fromfifteen minutes to half an hour.As previously mentioned, the Forex market is unique because ofits extreme liquidity. This liquidity is increased when themarket goes automated.Risk management problems are solved through automated Forextrading. International checks, which are commonly used in makingpurchases on Forex market, are synchronized through automatedtechnology. Since the transaction in an automated process is nowon real time, there is a slim chance that the payments will bedelayed, reducing the risk of non-payment by either parties.Although there are problems noted with the use of the automatedsystem, it can be fixed through consistently-updatedtechnologies.With automated Forex trading market, the prediction of $2-3trillion average daily turnover within the nest 8 to 10 yearscan be changed within the next 4 to 5 years. Given the quick yetefficient trades on varying time zones, automated Forex tradingwill now be among the existing lucrative business around theworld.