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Why Investing in Forex Funds instead of stocks is the logical choice |
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Written by Benton Pena
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Friday, 25 November 2005 |
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 Hello readers after not publishing a single news in few months now, I finally got the time for writing something interesting and exciting I've been working on for a while now. This is Foreign Exchange or Forex market or just FX investments as Forex Managed Accounts.
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Foreign Exchange - (Forex, FX) - the simultaneous buying of one currency and selling of another. Forex is short for foreign exchange. Source www.alterforex.com
This is how it works…
A professional money manager switches currencies in investor's portfolio, he buys one currency and simultaneously sells another currency. Conservative FOREX investments may use only five major currencies: US dollar, Euro - the single currency of European countries, Japanese yen, British pound, and Swiss franc. The investment philosophy is based on shifts in global economies - national GDPs growth, interest rates, consumer and business sentiments. And the technical analysis of currency exchange rates is applied also; which is the analysis of past historic movements to help predict future movements. A trader is just looking for the repetition of past occurrences.
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Some brokers use a Forex Robots based on popular Metatrader platform that trades your account 24-hours-a-day using highly sophisticated, multi-timeframe algorithms designed by top-ranked Forex money managers and traders and supervised by them. Visit AlterForex for more information...
Both model-based systems and subjective judgment are used to make trading decisions. Returns can be 4% to 7% each month or 20% to 40% annually depending of the instrument chosen and other variables. Visit AlterForex for more information...
Why the FOREX market is the perfect place for investments?
1. FOREX is smooth, liquid, voluminous global world-wide market
2. FOREX is the cheapest market for participants with narrow trading spreads - 3 pips majors pairs
3. FOREX is the fair market without insiders because is global
Three myths about the FOREX market
Myth 1. FOREX investments are very risky
Myth 2. There is no passive strategy for investors on the FOREX market
Myth 3. The FOREX market is not covered by analysts
Three known facts about the FOREX market
1. Currencies are less volatile than stocks
2. Including FOREX investments in your asset allocation will decrease the risk of your portfolio
3. You can achieve any conservatism on your FOREX investments by simply choosing your leverage from 1 to 10 or more but this is usually a desicion of the money manager
Three most frequently asked questions about FOREX
1. What is FOREX ? that I already answered this quetion
2. Are FOREX investments risky ?
3. What kind of returns does the FOREX market provide ?
Visit AlterForex for more information...
Have a look at AlterForex to find out the answers to these questions or please just send me an email at
This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
and I can send you a video of a web seminar answering these questions and talking about the future of Forex, Stocks, real state and Light Crude. You can IM me too, at bentonpena at yahoo.com
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