Can You Make Money with Investment Trading?

That is the million dollar question isn’t it?

After all, regardless of the investment vehicle you choose, your primary goal is to make more money with the money you invest, preferably as much as possible.

For just those reasons TMI focuses its investments strategies on the Forex market (FX).

While the mechanics of trading the Forex market is similar to trading equities in that prices fluctuate based on supply and demand; ever-changing bid and ask prices and the types of orders used by traders are pretty much where the similarities end.

One of the major differences between the Forex and equities markets is the number of trading alternatives available: the Forex market has very few compared to the thousands found in the stock market.

The majority of Forex traders focus their efforts on just seven currency pairs comprising of four “major” and three commodity pairs.

A stock trader on the other hand must sift through a vast number of assets to pinpoint a hand-full of eligible stocks that fit your investment criteria. This required research is tedious and very time intensive.

FX traders only need to concentrate on the latest economic and political news of the countries whose currency they wish to trade.

This makes currency trading much more simplified and therefor much easier to trade than stocks.

Quite often, the stock markets can hit a lull, resulting in shrinking volumes and activity. As a result, it may be hard to open and close positions when you’d like to.

Furthermore, it is only with extreme ingenuity and sometimes luck that an equities investor can make a profit during a “down” market. Strict US trading rules and regulations make it difficult to short-sell an asset when the markets are falling.

No such rules and regulations exist in Forex, allowing traders to profit in both rising and declining markets. Trading Forex involves buying and selling at the same time and short-selling is, therefore, automatically a part of every trade.

Thanks to high liquidity of the Forex market, two additional benefits of trading currencies are low margins and greater leverage.

Most margin traders in the stock market are required to have at least half of the value of their investment available in their margin accounts, whereas Forex traders only need as little as 1%. Commissions in the stock market tend to be much higher than in the Forex market as well.

Traditional stock brokers ask for commission fees on top of their spreads. Additionally, a fee must be paid to the exchange. In most instances, spot Forex brokers take only the spread as their fee for each trade.

The many benefits of Forex trading over the stock markets translate into more profit for the Forex investor.

That is the game plan of TMI all along: to make more money with the money you invest regardless of market conditions, rising or falling. Investment trading fits that plan perfectly.

*Additional Investment Guidance: