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Old 10-07-2008, 10:41 AM   #4 (permalink)
Jenny101
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Forex is a superior market, liqiudity is extraordinarily higher, its open 24 hours, some pairs pay rollover interest in one week that smashes dividend paying stocks. trends develop slower and last a long time, leverage is better. you can also use puts and calls, this market lacks nothing .

If you day-trade stocks and have $25,000 in your account, you can trade on 4:1 leverage. That is considered to be very risky. If you trade stock index futures, you can obtain 20:1 or even 40:1 leverage. You would never want to trade at this incredible amount of leverage, but it's available, and theoretically, this would be "potentially more profitable," but in reality, potentially a death trap for a beginner.

In forex, you can obtain up to 200:1 leverage. Wo! How much trouble do you think you could get into now? Even though this is "potentially more profitable," not advisable.

The leverage in forex can be scaled down to be no more risky than trading stocks. One of the main advantages: you can start with as little as $250. Half of learning how to trade the forex is learning how to trade gaps, caused by the reports, and momentum trades. The rest is kinda ho-hum by comparison.

The mistake most beginners make is taking on too much risk; leverage is a killer. There are no get-rich-quick schemes. Slow, steady and methodical, regardless of outcome, and keep coming back to trade again, rather than blowing out in the first month with too much leverage.

good trading
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