More and more day traders and small investors are turning to
foreign currency exchange market and for a number of good reasons. "The spot forex market provides them means to invest without concern for liquidity or market manipulation," says John Keister, ForexInterBank’s CEO. "More importantly, forex pivot point trading provides conservative investors means to turn a modest but consistent profit.""Historically, investment opportunities afforded by forex trading have gone largely unrealized because, up until a few years ago, market had been exclusive domain of governments, banks, institutional investors, and brokerage houses. Now, through ForexInterBank, investors can learn how to take advantage of those opportunities using a forex trading course designed to simplify process and to accelerate learning curve," say Keister, a medical doctor who first started trading forex while he was in medical school.
According to Keister, forex trading, while well known in ‘inner circle’, is only now beginning to get attention of both day traders and private investors. "Ten years ago, it was difficult to find a day trader or private investor who was familiar with market. Now at least half of people I talk with are at least mildly familiar with market and half of those have actually dabbled in it," he says.
Keister attributes this increased interest level to a number of problems unique to equities and futures trading. "The biggest problem is that price fluctuations on equities and futures markets are all too often a direct result of manipulation and/or buying and selling habits of major investors. Prices are not driven as much by supply and demand as they are driven by market makers, media hype, and large institutional investors who have financial means to literally make or break a stock overnight," he says.
The forex spot market, according to Keister, isn’t subject to that kind of manipulation. The average daily turnover in forex spot market is approximately $1.3 trillion dollars, 30 times turnover of all equity and futures markets combined. Unlike equities and futures markets, forex market fluctuations are driven by pure supply and demand - purchase and sale of foreign goods and services and, of course, speculation.
Experts estimate that 5% of market’s turnover is actually driven by trade imbalances, remaining 95% comes from speculation. "One doesn’t have to be an economist to understand that it is virtually impossible for any entity to manipulate a market of such an immense size," Keister says.
"What makes forex even more attractive is that one doesn’t have to waste time spending endless hours doing technical analysis and studying fundamentals that, as I mentioned before, can be totally invalidated by actions of insiders and major investors," he says. "Forex trades, while certainly not without risk, can be profitably and predictably executed without endless and sometimes fruitless study."
A second drawback to equity and futures markets is that once made investments are not very liquid. "Investors can’t react immediately to fluctuations in equity and futures markets because those markets are not ‘openly’ traded 24 hours a day. A lot can happen between closing and opening bells, let alone over a long weekend, and if investor sleeps late, he may wake up to find upon opening that he has suffered significant losses," he says.
"By contrast, forex market never closes. Once a trade has been initiated, investor has ability to modify parameters of that trade 24 hours a day."
Perhaps biggest factor making forex trading attractive is that trades are not commission driven or heavily fee based and this is why Keister got involved in forex pivot point trading in first place ten years ago. "Like most investors, when I started looking for ways to invest my money, I began process working with stockbrokers who were more interested in churning my accounts than they were providing me with information I needed to make ‘my’ cash register ring," he says.
"In search of a way to avoid costly brokerage fees, I looked into traditional day trading but found that costs were prohibitive. First, one has to invest a great deal of money in an education which can, as I said earlier, be rendered irrelevant by players who can easily manipulate market. Secondly, one has to ‘pay piper’. By that I mean you have to buy or lease an extraordinarily expensive and exotic software program that will enable you to execute trades.
