I find it amazing that nearly every day I receive something online or offline that is the greatest break-through in Trading. You know the stuff. This 'system or that 'method has been thoroughly tested and back-tested in every conceivable fashion and is wildly successful. Some work for a period of time but most do not. The decades old statistical fact still remains, 90+% of Futures Traders will lose all of their trading capital within their first year of trading.
Now there is a new and promising alternative. Enter e-currency trading. In simple terms e-currency is Internet Money. E-Currency allows the purchase of Internet goods and services at lightning speed and most importantly with a high level of security. Much higher than credit cards, bank transfer etc. The demand for e-currency should only grow as Internet Commerce grows. So what does this have to do with trading? There are literally hundreds of different e-currencies. Each is backed by an underlying Currency or a precious metal. The need arises to exchange between these e-currencies or converts an e-currency to hard cash. Much like the Euro is to the European Union. We can profit from the exchanging process and profit from the fluctuation of the underlying currency value.
In currency trading, a currency pair has a corresponding 'bid' and 'ask' price. The 'bid' price is how much the base currency is being sold by the currency broker while the 'ask' price is how much the currency is being bought by the trader. The bid price is usually lower than the ask price and this is where sales are made by the brokers. The difference between the 'bid' and 'ask' price is called the 'spread'.
Many Forex currency trading firms will allow you a leverage of 100:1 for your trading. Some will offer even more. If you have a 100:1 leverage, you can invest $1,000 of your own money, but trade $100,000! You can actually double your money with an increase of only one pip. However, you can also lose your entire investment with a decrease. This could equal big profits or losses, so be sure to consider the risks before jumping in with both feet.
As mentioned, currency trading occurs 24 hours on a daily basis. Traders can decide when to trade their currencies. As changes could happen any time, the trader should always keep watch on the best time to trade. Currency trade does not need a big capital to start. Beginners can start with small amounts and eventually increase their trading resources. There is also no need to play on all currencies on the market. A novice can focus on two currencies at first while getting the hang of it and then expand later on for bigger profits.
Industry experts have debated for years the optimum amount one should fund their futures trading account with. The obvious moving target is enough capital to withstand the drawdown periods. Many factors go into this but Ive seen numbers range anywhere from $10,000 to $50,000 and up. If this is the case then there is little doubt why most futures traders lose as most are willing to fund only the amount required to cover Margin or the Brokers account minimum usually a few thousand dollars. One of the biggest reasons for small business failure is being under capitalized, the same holds true in futures trading.
Now there is a new and promising alternative. Enter e-currency trading. In simple terms e-currency is Internet Money. E-Currency allows the purchase of Internet goods and services at lightning speed and most importantly with a high level of security. Much higher than credit cards, bank transfer etc. The demand for e-currency should only grow as Internet Commerce grows. So what does this have to do with trading? There are literally hundreds of different e-currencies. Each is backed by an underlying Currency or a precious metal. The need arises to exchange between these e-currencies or converts an e-currency to hard cash. Much like the Euro is to the European Union. We can profit from the exchanging process and profit from the fluctuation of the underlying currency value.
In currency trading, a currency pair has a corresponding 'bid' and 'ask' price. The 'bid' price is how much the base currency is being sold by the currency broker while the 'ask' price is how much the currency is being bought by the trader. The bid price is usually lower than the ask price and this is where sales are made by the brokers. The difference between the 'bid' and 'ask' price is called the 'spread'.
Many Forex currency trading firms will allow you a leverage of 100:1 for your trading. Some will offer even more. If you have a 100:1 leverage, you can invest $1,000 of your own money, but trade $100,000! You can actually double your money with an increase of only one pip. However, you can also lose your entire investment with a decrease. This could equal big profits or losses, so be sure to consider the risks before jumping in with both feet.
As mentioned, currency trading occurs 24 hours on a daily basis. Traders can decide when to trade their currencies. As changes could happen any time, the trader should always keep watch on the best time to trade. Currency trade does not need a big capital to start. Beginners can start with small amounts and eventually increase their trading resources. There is also no need to play on all currencies on the market. A novice can focus on two currencies at first while getting the hang of it and then expand later on for bigger profits.
Industry experts have debated for years the optimum amount one should fund their futures trading account with. The obvious moving target is enough capital to withstand the drawdown periods. Many factors go into this but Ive seen numbers range anywhere from $10,000 to $50,000 and up. If this is the case then there is little doubt why most futures traders lose as most are willing to fund only the amount required to cover Margin or the Brokers account minimum usually a few thousand dollars. One of the biggest reasons for small business failure is being under capitalized, the same holds true in futures trading.
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Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: How To Choose A Reliable Foreclosure Prevention Services You have full permission to reprint this article provided this box is kept unchanged.
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