Forex Trading made simple…

FX Pros and Cons

Trading has its advantages and disadvantages. Below is a summary of what you can expect when trading Forex.

Pros

  • Largest Market in the World so you can easily get your orders filled.
  • Open 24 hours a day so you can trade after work.
  • Leverage allows you to trade with smaller amounts of money.
  • Can open a broker account for as little as $100.
  • Your order size remains the same no matter what value the currency is at.
  • Currencies follow price trends.
  • Brokers provide Free charting software .
  • You can only lose what is in your trading account.
  • Courses could be tax deductible.
  • Can make a profit in a falling and rising market.

Cons

  • Cost of trading is the spread (difference between the buy and sell price) which can change a lot from broker to broker and when the market is active.
  • If you do not plan your trade and use good risk management methods you can lose more than you expect or want to.
  • It is critical to know how to:
  • 1. Read Charts.
  • 2. Manage Risk.
  • 3. Interpret News and economic data.
  • 4. Use your broker's Chart Platform.
  • 5. Use the right order entry for your trade.
  • 6. Manage your emotions.