Source: www.forex.com
Topic: Foreign Exchange
Sort Desciption: Forex Is Your Friend BASIC TECHNIQUES by Mark Galant W hile online equities and futures trading have enjoyed exponential growth and widespread notoriety over the past few years, online foreign ...
Content Inside:
Forex Is Your Friend
BASIC TECHNIQUES
by Mark Galant
W
hile online equities and futures trading
have enjoyed exponential growth and
widespread notoriety over the past
few years, online foreign exchange
trading is only now gaining popularity among
seasoned active traders, commodity trading advisors
(CTA s), and other professional money managers.
Until recently, large international banks dominated
the foreign exchange (FX or forex for short) market,
only allowing access via telephone trading to a select
few such as Fortune 1000 companies, large funds,
high-net worth individuals, and so on. But now, the
tide has turned and finally there are established
online trading firms that provide individual investors
with direct access to the largest, most liquid financial
market in the world.
DIVERSIFY YOUR DIVERSIFICATION STRATEGY
In addition to the markets trading opportunities,
foreign exchange can be a solid diversification component
in your financial portfolio. Most diversification
strategies involve a combination of sector allocation,
foreign and domestic equities, and fixed income.
Some participants have branched out into
precious metals and/or energy products; however,
Trading opportunities in the forex market deserve
serious consideration as a diversification strategy
for your portfolio.
few traders consider expanding into forex. Why?
The reason may be in the simple fact that in the US,
investors tend to be underexposed to foreign exchange.
Unfamiliarity typically breeds misconceptions, and
foreign exchange in the US is no exception.
RISKY BUSINESS ?
Is forex as risky as everyone thinks? One way to
measure risk is to compare a financial products risk
relative to its return. If you take the time to compare
an investment in forex to common investments such
as equities and fixed in ...
