The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. 3 trillion per day, dwarfing volume in the equity and future markets combined. Such a huge amount of daily volume allows for excellent price stability in most trade index vs forex conditions.
This means you likely will never have to worry about slippage as you would when trading stocks or commodities. The price you see quoted on your trading screen is the price you get. 24 hours a day 6 days a week. There is no opening bell in the forex market. You can enter or exit a trade whenever you want from Sunday around 5pm EST to Friday around 4pm EST. There are 3 distinct trading sessions for you to take advantage of in the U.
Europe, and Asia which allows you to trade on your own schedule and respond to world-wide breaking news. Commission free trading and overall low transaction costs. 150 per trade for a full service broker. 30 to enter and exit every trade. Typically these spreads are as little as 1. Market transparency is much greater in forex than in stocks or commodities, this means it is easier to analyze the inner workings of the market and figure out what is driving it. For example, economic reports and news announcements that drive a country’s economic policy are widely available and accessible for anyone interested.
Whereas an individual company’s accounting statements are much harder if not impossible to obtain. Forex margin requirements were recently raised in the U. 1:100 this is still much higher leverage than you will get in the futures or equity markets. Price movements are highly predictable in the forex market. Due to its highly speculative nature forex price movements tend to over shoot and then correct back to the mean. This means there are a number of repetitive patterns that are easily recognizable to the trader who is trained in price action analysis.
Equal opportunity to profit in rising or falling markets. The forex market has no structural bias as do most stock markets. For example, most stock markets have a bullish bias, this means traders tend to like the long side or upside of the market more and as a result of this it is actually more difficult and generally requires more margin to sell short in a stock market. This is not the case in the forex market.
No constraints on the number or type of transactions. Mini and micro accounts make it easy to get started. There are many forex brokers that are easily accessible on the internet. Unlike futures or stock markets it is not going to benefit you much if at all to have a full service broker in forex. Most of the bigger forex brokers all offer tight spreads and very similar price feeds, they also all offer demo accounts that let you test out your trading ideas before risking real money.
Forex price movement lends itself wonderfully to price action setups. Due to the speculative and contrarian nature of the Forex market prices tend to continue in one direction for a decent move and then revert back to the mean or value-area. More often than not these big moves are tipped off with a price action signal. If you are trained by a professional trader in the art of price action analysis you can design an entire trading plan around a few simple yet effective price action setups.