With the huge losses recorded in the equities market in the last few years, investors have expressed worry on where to stake their funds.The few investors, who still believe that the market will improve later are still expressing caution as a result of the general instability of the financial markets.However, experts have said that one market where investors who have excess funds could still play is the foreign exchange market.The foreign exchange market is a global, worldwide-decentralised financial market for trading currencies. In this kind of market, financial centres around the world function as anchors of trading between a wide range of different types of buyers and sellers around the clock, with the exception of weekends.The forex market exists wherever one currency is traded for another. It is the largest financial market in the world, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions.The current average daily trade in the global forex and related markets has been put at over $4tn. Retail traders are a small fraction of this market and may only participate indirectly through brokers or banks.Although a lot of people have entered the forex business with the wrong notion that it is a get-rich-quick scheme, analysts have said that without the key component of discipline and mastering ones emotions investors that play in this market might lose everything in one day.For instance, a forex expert, Mr. Mihail Krush, says that investors who have been well-trained are assured of huge returns when they play in the forex market.According to him, an important ingredient to trade successfully in the forex market is the ability to rein in ones emotions, adding that the element of greed often results in huge losses in the market.He says, If you have been keeping up with the performance of the markets lately, you probably will know that now is not the time to place your hard-earned money into some of the other traditional investment tools where you may lose them easily, as the forex market is now a more effective way to invest.Lately, the forex market has seen a recent surge in popularity among investors; this is due to its high potential yields.He notes, however that like other markets, investing in forex also involves a lot of risks.For beginners, with their lack of experience of managing risks and controlling their emotions, the forex market can be very overwhelming, besides, most of us do not have the free time to carefully analyse the market everyday or to acquire the experience and knowledge needed to make currency trading profitable, he says.This, according to him, is the reason intending investors have to take time out to ensure that they learn the intricacies of playing in the market, and should not just rush into the forex market because of the attraction of making quick cash.The Head of Sales, Alpari Trading West Africa Limited, Mr. Olumide Ladipo, adds that with as low as N50,000 a person could play in the market, adding that he could make as much as 100 per cent of his investment in one day, but it is essential for one to have a daily target and have the discipline to withdraw once the target has been metAccording to him, a lot of things have been made easy for intending investors in forex market especially considering the fact that some investors may not have the time to be involved in the trade themselves,Ladipo says, Some forex trading outfits have taken the fact that investors are very busy into consideration and have come up with some flexible ways in which these investors can make their money without becoming directly involved themselves.For instance, some have come up with selected accounts where the investor can open a managed account and the terms of the account will be based on the agreement of the manager and the investor while deposits and withdrawals could also be carried out based on the terms agreed upon in the proposal.It is convenient because, one no longer needs to be an experienced trader to start taking advantage of the liquidity and high potential returns of the forex market, you can put your investments under the management of a skilled forex trader.
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