Is Forex Trading better than the alternative options
Before acquiring a deeper knowledge of the world of trading and its intricacies, for many people, the term "day trader" has an unbreakable connection with the stock market. Often mentioned or even portrayed in numerous Hollywood movies, stock trading is not the only form of exchange for a day trader. Future trading or trading on the foreign exchange market are two gigantic trading worlds that can offer a safer, more reliable experience for a beginner trader.
To find some success in trading, focusing on one of the markets is great for building up knowledge and practicing without the overload of information and distractions. Different markets have different requirements. The foreign exchange market (Forex) is usually the only available starting point for a beginner trader, but is Forex trading better than trading on the alternative markets?
Day trading on the glorified stock market is often unaccessible for many beginner traders. If you want to start a career in stock trading, you need a minimum starting capital of $25,000. It is quite rare for a lot of newcomers to have such amount of money for trading, and a slightly bigger capital is recommended to have a better chance at a respectable profit. The stock market is open from 9:30 AM to 4 PM ET, but it is also possible to execute trades before the opening in the so-called pre-market. The best time to trade shares is at the start and the end of the market hours and there is an incredible amount of stocks you can trade. A lot of intermediate traders chose to trade the same stock every day, closely following the activities and success chance of the publicly-traded company. Experienced, advanced traders focus on high-interest stocks, but this strategy requires an incredible amount of research and experience. Starting off your trading career with the stock market is not recommended, because it a large minimum capital and can be very unforgiving for inexperienced traders.
Trading futures is a great middle-ground because it does not have a required minimum capital. Your starting capital can be as little as $3,000, but just like with any form of day trading, a bigger capital allows you to be more flexible in your decisions. Many future traders solely focus on one futures contract after gathering a lot of information and knowledge while trading it. Riskier future traders pay closer attention to futures that show significant signs of growth. Future trading can be a great alternative to stock trading for intermediate traders with capital less than $25,000.
Trading on Forex is a great learning experience for a beginner trader. A minimal starting capital is only $500, which is great for learning the fundamentals and tinkering with various trading strategies. Trades on the foreign exchange market are executed 24/7. Some hours are better for trading, but continuous execution of trades creates some great opportunities for automation. More than 70% of Forex trades automated. Setting up a unique trading system with algorithmic automation can be both a great source of income and a tool to practice and learn more about the tendencies of the market. Beginner traders should stick with trading the most stable currencies which have an abundance of trades, creating enough movement in the market.
The foreign exchange market is the best place for beginners to start their trading careers. Many tools can be utilized to increase the speed, precision, and security of a trading system. Virtual Private Servers (VPS), are often used to base Forex trading software on a partition of a powerful server with a great internet connection. VPS Forex Trader offers these services to many traders since 2011. By eliminating the failure chance created by power outages, bad hardware, or a poor internet connection, clients choose the best location and parameters of a rented server, which they can monitor with an electronic device from any location in the world. Trading on Forex is not only beginner-friendly but also the most comfortable way to have a trading career. Algorithmic automation does the majority of the heavy lifting on your trading platform, while you can use your phone or a laptop to access and monitor the activity of your platform and make adjustments if the need arises. Thanks to VPS Forex Trader and other hosting providers. trading on the foreign exchange market has never been so enjoyable.