What are the advantages of the Forex Market over other types of investments?

When thinking about various investments, there is one investment vehicle that comes to mind. The Forex or Foreign Currency Market has many advantages over other types of investments. The Forex market is open 24 hrs a day, unlike the regular stock markets. Most investments require a substantial amount of capital before you can take advantage of an investment opportunity. To trade Forex, you only need a small amount of capital. Anyone can enter the market with as little as $300 USD to trade a “mini account”, which allows you to trade lots of 10,000 units. One lot of 10,000 units of currency is equal to 1 contract. Each “pip” or move up or down in the currency pair is worth a $1 gain or loss, depending on which side of the market you are on. A standard account gives you control over 100,000 units of currency and a pip is worth $10.
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There are a few main premises of scalping that are useful to keep in mind to understand the logic behind these techniques.

Smaller moves are easier to gain – In my previous eBooks I mentioned that the larger your target pip gain the higher the possibility that the target won’t be reached.  I have been known to say that it is easier to catch 20 pips than 200 simply because in the time that it would take to reach that goal the market sentiment could change due to unforeseen circumstances.  As a scalper it is reasonably easy to determine a small movement in a particular direction and to capitalize on a few pips before the market will likely reverse.
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Here is a general overview of what scalping is like.  I’ll talk in generalities here but will certainly go into specifics later in this eBook.  This section is just to give you a taste for how a typical trade goes.

You watch your charts for specific market conditions to occur.  Once you see a potential opportunity you begin to watch your charts very closely for the right moment to act.  Once the desired circumstance occurs you pounce to enter a trade.  Your trade is entered with a stop set at 10 pips below your entry price.
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Before we go any further we are going to be 100% honest with you and tell you the
following before you consider trading currencies:
1.All forex traders, and I mean all traders lose money on trades. Ninety
percent of traders lose money, largely due to lack of planning and training and
having poor money management rules.
2.Trading forex is not for the unemployed, those on low incomes, who can’t
afford to pay their electricity bill or afford to eat. You should have at least
$5,000 of trading capital (in a mini-account) that you can afford to lose. Don’t
expect to start an account with a few hundred dollars and expect to become a
kazillionaire.

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