Archive for October 2008
How Can I Make Money Day Trading Forex?
Just like with anything else, you need to buy low and sell high.
The huge potential for profit in the forex market comes from the changes in the currency exchange market.
Contrary to the stock market, no physical shares are purchased (or in this case, no physical purchase of currency occurs), relying on contracts for the amount and exchange rate of currency pairs.
The fantastic thing about day trading forex is that normal daily fluctuations in regular currency exchange markets (often around 1%) are multiplied by 100!
Depending on the forex broker you go with, the range of leverage could be even higher!
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Tags: What is the advantage to trading forex?
The advantage of trading forex is simply: leverage.
The ratio of investment to it’s actual value is called the “leverage”.
If you used $1,000 to purchase a Forex contract having a $100,000 value, you are leveraging at a 1:100 ratio.
The $1,000 all you invest and risk at one time, but the gains you can make may be many times greater.
This is the beauty of forex investing in that you can make a lot of money with a small investment if done properly.