Thursday, June 29, 2017

Forex Australia – A Review of the Market

forex australia modelsWith todays uncertainty in the global economy, Australian investors are becoming more and more concerned with the increasing volatility being seen every day in the US, European and Asian stock markets. These concerns are causing a lot of Aussie investors to begin looking very seriously at the Forex Australia as a safer alternative for capital growth and short term trading opportunities.

When it comes to the mainstream business media, we are bombarded with corporate earnings, upgrades/downgrades, the Dow Industrials, the S&P 500, and the Nasdaq.

It doesnt matter if it’s CNBC, Bloomberg, Reuters, or the BBC… all we ever hear about is if the stock market is going up or down! By default, we are led to the believe that the stock market is the best game in town for investors and traders.

The traditional “buy and hold” strategies that we’ve listened to for decades may have worked in the past, but all of us know that past performances are no guarantee for the future. Over the past 50 years, we have witnessed an era of unprecedented international economic growth where these long term strategies made money because, well, over time everything made money.

Smart Investors are looking at Forex Trading

Smart investors are turning to currencies and forex Australia as a way to make their money work for them despite the major problems we see on the horizon for global economies.

Australia’s economy is ranked number 3 in the Asian-Pacific region, making it a major player in world trade and international finance. This has also caused the Australian dollar to become one of the most heavily traded currencies, not only within forex Australia, but globally as well, creating an excellent vehicle for small investors to diversify and profit despite the troubling and slow growth rates we see around the world.

What is Forex Trading

The Foreign Exchange, or Forex is simply the buying and selling of currencies. These currencies are always traded as pairs with one currency being purchased and the other being sold . For example, you may purchase the Euro and the US dollar (EUR/USD) as a pair. In this transaction you are buying the Euro and simultaneously selling the US dollar. As the two currencies fluctuate, forex traders are given the potential opportunity to profit as these currencies move.

Structurally, this is not much different from buying a stock in that you are wanting to buy low and sell high. However, for an individual trader, trading with a small account, there are some huge advantages with online currency trading over the stock market. With the forex Australia market you never have to worry about earnings reports, corporate fraud, take-overs, upgrades and downgrades, insider trading, or hedge funds dumping your stock! And that’s just the beginning…

here are some other key take-aways that make the forex a no-brainer for individual traders.

24 Hour Flexibility…

The Foreign Exchange is open 24 hours a day from Sunday at 5:15 pm. ET to Friday at 4:00 pm ET. You can trade when you want based on your schedule!

Volume and Liquidity…

The FX market has the highest daily volume of any other market in the world!

As a small trader you must have liquidity to make money. Liquidity comes from high volume, meaning that the more buyers and sellers, the easier it is to get the current price when placing an order. Liquidity also gives the market very tight spreads between the bid and the ask, making it a much better instrument for retail traders.

Simplicity…

This one is my favorite and here’s why. Because of high volume and 24 hour trading, the currency pairs that are traded tend to behave on a price chart more predictably then most stocks or futures contracts. This creates a very favorable environment to properly use
technical indicators and automated trading systems for buy and sell signals. You dont have to become an old “frayed cuff” charting expert to make money using technical indicators.

You only need one or two back-tested systems to generate profitable buy and sell signals. If you are a new trader, or if you are new to trading the forex markets, some of this may seem a bit difficult to understand at first. Use the information in these pages to begin educating yourself.

Find a good broker, begin taking recommended courses and participate in a good on-line forex community and the learning curve will be dramatically reduced.

Learning how to trade forex Australia, developing an understanding of fundamental analysis, chart reading and how to control risk are very simple to learn with the right training. These are skills that will change your life and your financial future if you will take the time to invest in yourself and then implement what you learn.

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