Know this and Prosper.
Our Top 5 Reasons
Many people have asked me why I trade the Forex market exclusively for an income and nothing else. Here are my top 5 reasons for doing so. These are also the reasons that are unmatched by other trading instruments like Stock, and Options.
1) High Daily Trade Volume
The Forex (FX) market is the largest market in the world. Daily trade volume reached $6.6 trillion per day in April 2019, up from $5.1 trillion three years earlier, according to the 2019 BIS Triennial Central Bank Survey. This sheer volume dwarfs the trade volume of all the world’s stock markets combined, which average roughly $200 billion per day. Unlike stocks, nobody can own the market nor can anyone control the market per se.
High daily trade volume means high liquidity. This means all our market orders to enter and exit the market at the price we want is instantaneous. No waiting and no price gaps. High trade volume and liquidity also lead to tighter spreads and lower transaction costs on a per-trade basis for our investors.
Unlike a business owner or a stock trader/investor where the asset holder is required to make themselves guarantors and/or collateralize their assets for leverage or margin (a.k.a. loans) needed. In Forex trading, this leverage is given free by the licensed FX Broker that we work with. No guarantor or collateral needed.
Similar to a loan, leverage is a two-edged sword. It magnifies your returns as well as losses. This is the reason why we utilize the multiple currency pairs, multiple hedged positions, and over multiple time frames approach to mitigate this trading risk and put the odds on our side.
3) 24-Hour Market
The Forex market never sleeps. It is open 24 hours a day, 5 days a week. Forex trading is facilitated through the interbank market across 1300 banks all around the world and not over a traditional exchange. As such, there is no waiting for the opening bell of an exchange or scrambling to get your order executed before its close.
This is where our passive algorithmic trading makes the most sense as compared to active manual trading by traders.
4) Forex Market is Cyclical
Forex trading is traded in pairs between two currencies, and because no one currency can appreciate or depreciate against the other forever, thus the Forex market will always move cyclically.
This knowledge has been the backbone of our trading algorithms. This knowledge has helped us designed our algorithms to “Buy Low, Sell High”, and “Sell High, Buy Low” in most of our trades and delivered consistent returns to our investors annually.
5) Narrow Focus
Analyzing a stock that will make you money among the thousands is like looking for a needle in the wide ocean. It is exceedingly difficult even for the most astute trader or investor. They get it wrong most of the time.
On the other hand, Forex trading is a lot simpler and focus. There are only 8 major pairs of currency that are most traded daily. And out of these 8 major pairs, we trade only 5. We have selected these 5 pairs because they correlated with one another and thus increases our odds of success.
To receive more information on our services, go here.