What is the fuss all about?
The Foreign Exchange market, or Forex or FX Market is literally the largest most liquid market place in the world. This is the playground of the Millionaire and even Billionaire trader.
In Forex you can literally create millions for yourself, if you use proper professional trading strategies. This marketplace has both the leverage and the accuracy to transform your trading career.
At time of writing the Forex trades about $3 trillion dollars every single day. That’s more than the every single asset class combined (i.e. more than the bond, stock, equity markets together!).
The sheer size of this marketplace means that, unlike trading stocks, you can easily execute your trades at any time and get extremely tight spreads on your trading. This means the cost of dealing is low and the also the more you trade the cost stays fixed – so unlike stocks where you would expect the price to move the larger the order (as brokers have to source enough stock for you to trade), the Forex markets are completely liquid.
For this reason alone, Forex is the self-selected marketplace of choice of the Millionaire trader, due to its speed, efficiency, transparency and clarity of signal.
The More People, the Better the Signal…
For trading signals and strategies to actually work out, we need lots of traders to be agreeing with the signal. Therefore participation is key! Given that Forex is the most participated market in the world, you can be sure that the signals are the clearest of any marketplace. If you have ever traded an ill-liquid stock in the past using technical analysis – you will know exactly what i mean. Illiquid stocks only need one participant to ruin an otherwise perfect technical setup.
Due to magnitude of the Forex market, this noise from one or two individuals is smoothed out because of the sheer size – again. This translates into reliable signals. The power comes when your trading strategies are reliant on trading these clear signals.
What you are looking at below is a chart of the EURUSD. You are looking at Pivot lines below (we’ll talk more about these later on), just for now notice how the price bounces ever so accurately off these lines. Trading Strategies that work, are those which use these type of clear undeniable trading signals.
