As we mentioned in the article "The forex market vs stock market, there are certain virtues in the FX market make this a more attractive market for investors. In the first part we saw some of them now look other forex market.
Minor errors in execution of orders.
In general, while shorter the process to fulfill an order, the lower the probability of error. The online trading in forex market is a process that consists of three steps. An investor makes an order in which platform you are using, the house broker executes the order immediately, and finally, the confirmation is displayed by the investor. This process is met, usually in seconds. For an investor in shares, the order must meet at least five steps. Finally, the customer receives confirmation of his broker. Because the forex market, there is this chain of steps, the costs are lower and the possibility that a mistake has been committed prejudicial to any party.
Similarly, being a market where orders meet fewer steps, limiting the risk that the price at which the compliance order is different from the requested price. In the stock market, orders are executed at the best possible price resulting in the investor start or close a position at a price that is not favorable.
It is the perfect market for technical analysis.
For technical analysts, currencies rarely remain long in negotiation limited ranges and are more likely to develop strong trends upward or downward. About 80% of the volume traded is speculative and therefore the market often over-extended and then corrected to their average levels. Technical analysis works very well in the fx market and an investor-versed in this technique can easily identify new trends and when they arise, so that you will find multiple opportunities to enter and exit the market. The graphs and indicators are used by all professional investors participating in the forex market and the Japanese candle charts are common platforms for transaction. Many of the traditional indicators that have equal validity in the stock market. These indicators are the setbacks of Fibonacci, moving averages, RSI, MACD and levels of resistance / support, among others.
Investors who are making the transition from the stock market forex market these technical indicators to find that they can employ the same strategies that were used.