Opportunities in Online Forex Trade Gathers Speed

November 15, 2011 by  
Filed under Uncategorized

Article by Trading Mathew

Many foucing on forex trade will have scoutted for various information, tutorials or software and as a result discovered tonnes of online brokers. Interestingly until late 2008, the forex trading sector was rather slow. Recent polls indicate that approximately 50% of those active in online forex trade entered within the year.

This speaks a lot of the scope that lies ahead. Online forex trade is a growth industry, much similar to social ecommerce and other forms of social ventures. However it is much earlier in its lifecycle and hence even more exciting. The profitability of this business also shows in the cost of forex and related traffic. While the average cost per click in Google for keywords ranges from $ 1.0 and $ 2.0, keywords in forex start from a low of $ 3.0 all the way to $ 7.0 and higher.

Online forex trade is highly profitable. New entrants have experienced the above average returns compared to sectors they already function in. Naturally the competitive landscape has changed. Some of the online trading systems also offer complementary trading in commodities such as gold, oil and other items.

In the year 2007 forex trading started gaining momentum online. In 2010 we started seeing forex brokers offering online trading solution from countries as far and distinct as Mauritius. With such excitement also comes risk.

When any area in the internet gains momentum, a slew of dummy products, quick result products and scammers follow suit. Most of these techniques revolve around huge short term gains, which is contrary to the fundamentals of forex trade. As the industry evolved the so did their ways. Forex trading software like Forex Auto-pilot and Forex Robot are guarantying 100% growth in a month – which is impossible. These are just variations of Expert Advisor – intelligent forex trading software that assist in predicting the currency fluctuations. However, in the wrong hands they end up being marketed as magic wands.While there are scientific tools for technical analysis which help come up with short term price extrapolations, there is no assurance.

At the end of all this chaos there are few fundamentals that determine successful forex trades on the web – a good internet trading strategy, supported by technical analysis using supporting forex charts. Everything else is either built on top of these fundamentals or a mere fabrication of these information in a fancy packaging. Empowerment is necessary for success.

Mathew focuses on online forex trading and specializes in forex trading strategies using trading software.

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