Sunday, December 12, 2010

The differences between buying mutual funds and forex trading


Mutual funds require you to stay invested for the long term (at least 5 to 10 years).

Mutual funds only make money when the market goes up. They do not have the ability to short the market when the market goes down.

Mutual funds require you to pay service charges. When you total up these charges and compound them over the long term. The charges itself comes up to 2/3 of your real equity of the money invested.

Forex trading enables you to buy, short and hedge the trend. With this ability, you do not have to worry about the forex market going up down or sideways!

Forex trading is not risky as long as you know what you are doing and have good risk management skills. When you are in a good trade you can make profits as soon as in 5 minutes!

Forex trading has the lowest service charges possible because the forex market is the most liquid and most competitive financial vehicle, therefore brokers could keep the charges as low as possible due to high volume.

Hope this article has helped you in your research.

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This is Kishore M, an ex hedge fund manager.



With the past experience of managing a fund that brings in more than 20% a year, Kishore M is now willing to share his trading strategies with the world through his online forex courses called Instant FX profits.


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