Query by William M: What is better out of investing regular spot foreign exchange or currency alternatives?
I am eighteen decades previous and I am thinking about trading currencies as a house primarily based organization. I’ve had apply with normal spot forex and uncover it okay. I want to know what is far better if I was to trade normal spot foreign exchange or currency possibilities? Which is much better, and which has the very best opportunity of you turning out to be effective and getting to be a millionaire out of?
Very best answer:
Response by Yorky
Except you are a skilled you are heading to eliminate your money swift. This is no place for novice.
Add your own reply in the feedback!
May 20th, 2011 at 4:39 pm
hi,
forex is 100 times bigger then regular stocks.it produced lot of millionaires in the world.i lost job and strated fx trading as part time and now it became full time work to me.my advise is practice as much as u can before u enter real trading.i think u have done nice practice.currency options is good but use good trading platform.i use etr and they have nice visual system with 24 hour support team.here u can find best trading platforms that most traders use
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forexplatformslist.com
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good luck
May 20th, 2011 at 4:42 pm
Use currency options as a hedge for your spot trades. Don’t use it for pure speculation. Understand more about options before you try.
May 20th, 2011 at 5:27 pm
It really depends if you are dealing with long term or short term trades. IF your dealing with the 10min charts or 1 hour charts there is no point in buying forex options. If you want to learn more about options I would go to http://www.allmarketpicks.webs.com . It helped a lot.
May 20th, 2011 at 6:24 pm
Options are good for hedging and for longer term.
May 20th, 2011 at 6:27 pm
Currencies tend to trend long term and be volatile in the short term.
Have a look at this chart from finviz & see if you agree.
http://www.finviz.com/forex_charts.ashx?t=ALL&tf=w1
I only trade currencies using long term call options. Why?
1. I have a known level of exposure (I can’t loose any more than I put in)
2. I feel its lower risk, as I am trend trading – trends can also revert.
3. It is definitely lower risk than spot trading, as I am not trading on margin – I can still loose everything though.
4. I’ve had a few friends take up currency trading (spot), do quite well for a bit then have a bad run, only one out of 6 is still in the game.
5. It suits my personality. If you can handle the swings, spot trading might be the thing for you.
Open up a demo account and see how you go.
Give your self time to learn before putting your own money down – once its gone, its gone.