Most of us have to earn money for living. Trade was one of the easiest businesses forages. But during centuries merchants sold goods, later services - something worth of some value. But as time passed goods and services became not enough. Businessmen wanted to sell easier. I mean – to get money from trade without any other additional responsibilities – no warranty, no disappointed customers and so on… Stock market and FOREX became the best answer to these requirements… Till today… And not only because it sounds interesting but for some really economic reasons.
Big opportunities are provided by financial currency markets as experts evaluate their size appr. $2 trillion per day. This tremendous size result in liquidity of that kind of business (investor can return his/her capital rather easy and without loosing much money as it may happen when you trade goods and demand falls). On the other hand this market is very close to the ideal model of perfect (pure) competition with all its advantages. Almost everybody can have access to complete and correct information and nobody can be enough big to influence the prices and situation in general. So, the conclusion: most of economic laws work correctly and investor can use them to forecast the situation for the upcoming period.
By the way liquidity of forex trading comes from easiness of entry. You can start trading with $200 and this amount is decreasing. Last year it was $250 (decreased by 20%). I think in 10 years it’ll be less then $100 because of competition between different companies providing forex accounts :-). At the same time profit potential is unlimited. And the opportunity to trade doesn’t depend on time and economic situation in the country or world economy in general. It happens because forex trade can earn money either when currency goes up or down.
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