Many of the same strategies that you use to trade futures, equities, and all other markets can be applied to the FX market, but there are differences. The FX Power Course teaches you these differences including the characteristics of the major currencies, what technical tools and money management strategies work best in the FX market, and other market insight to help ensure a successful transition to trading FX.
Why Equities and Futures Traders Make Great FX Traders
The foreign exchange market offers several key advantages over the equities market including 24-hour market liquidity, equal ability to profit in up and down markets, low transaction costs, and strong trending characteristics.
24-Hour Market Liquidity
The daily volume of the FX market exceeds $1.4 trillion per day, roughly 30 times the volume of all U.S stock markets. The consistent liquidity of this market provides currency traders with the ability to enter and exit trades regardless of the size of the transaction or time of day.
Ability to Profit in Up or Down Markets
Unlike the equity market, there is no restriction on short selling. Profit potential exists in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising or falling market.
Low Transaction Costs
The over-the counter structure of the currency market eliminates exchange and clearing fees which, in turn, lowers your transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen.
Trending Market
Currencies rarely spend much time in tight trading ranges and have a tendency to develop strong trends. Over 80% of volume is speculative in nature; as a result, the market frequently overshoots and then corrects itself. The FX Power Course teaches you to identify new trends and breakouts, which provide multiple opportunities to enter and exit positions.
Why Equities and Futures Traders Make Great FX Traders
The foreign exchange market offers several key advantages over the equities market including 24-hour market liquidity, equal ability to profit in up and down markets, low transaction costs, and strong trending characteristics.
24-Hour Market Liquidity
The daily volume of the FX market exceeds $1.4 trillion per day, roughly 30 times the volume of all U.S stock markets. The consistent liquidity of this market provides currency traders with the ability to enter and exit trades regardless of the size of the transaction or time of day.
Ability to Profit in Up or Down Markets
Unlike the equity market, there is no restriction on short selling. Profit potential exists in the currency market regardless of whether a trader is long or short, or which way the market is moving. Since currency trading always involves buying one currency and selling another, there is no structural bias to the market. This means a trader has an equal potential to profit in a rising or falling market.
Low Transaction Costs
The over-the counter structure of the currency market eliminates exchange and clearing fees which, in turn, lowers your transaction costs. Costs are further reduced by the efficiencies created by a purely electronic market place that allows clients to deal directly with the market maker, eliminating both ticket costs and middlemen.
Trending Market
Currencies rarely spend much time in tight trading ranges and have a tendency to develop strong trends. Over 80% of volume is speculative in nature; as a result, the market frequently overshoots and then corrects itself. The FX Power Course teaches you to identify new trends and breakouts, which provide multiple opportunities to enter and exit positions.
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