Trading Online Worldwide for Best Liquidity

Today’s traders have access to trading online worldwide. This enhances efficiency and reduces extreme volatility. Which in the old days could wipe everyone out.

Trading Online Worldwide Offers a Better Deal on Every Trade

Trading online worldwide offers much more stability not only to retail traders, but also to investment banks. Investment banks are just as likely to be wiped out as the average retail trader is. This is because risk, in theory at least, is always greater than reward. And because as with all things in nature, there is a million ways for things to go wrong, and only few for them to go right. Extreme market conditions, extreme volatility and natural disasters can wipe out even the largest trader. No better example than the collapse of LTCM in 1998, which was wiped out in trading because of not controlling risk properly. And this was sophisticated trading, but based on the assumption that Russia would not default on its debt. And as always, assumption is the mother of all failures. Barings Bank was also wiped out, in 1995, because of risky Futures trading combined with the earthquake in Japan that year. Today, trading online worldwide still doesn’t protect you against such events, but you as a trader can put stop losses on your trades, accept failure and cut your losses early. Just about every forex broker today offers better liquidity. Especially CFD brokers who offer one way, highly beneficial liquidity and still protect you from many adverse market effects. These brokers can handle retail trading well, and trades up to $100 per pip very well, at all times and speeds. You as a retail trader can choose the best forex trading platform that matches your trading style, and gain access to a worldwide market. Market stability means that you can always find another trader to take the opposite side of your trade. And they in turn can also find another to close their trade and so on.

Trading Online Worldwide Makes it Possible for Wise Traders to Win

Trading online worldwide makes it possible for traders with original ideas to implement them fast and efficiently. Anything from hedged Carry trades through to directional forex trading ideas, can all be implemented one way or another. And the trader in question can even hedge risk better on losing trades, before making a decision on them. Forex signals based on momentum and divergence patterns are also more solid and reliable thanks to today’s massive market. And this is because traders look at the same charts, and are connected through them. Back in the old days, no such trading could be done, because participants were very few, and volatility was through the roof. Volatility is still a very strong factor in the markets, it offers opportunity and poses risks, but it is at levels which are acceptable by most retail traders. Nonetheless, the use of large size stops is a mistake, even today, and it is not compatible with any level of volatility. Many traders cannot embrace volatility at all. But those who can are able to turn many adverse market moves into profitable opportunities.