www.ForexAutopilotRobot.com – BEST Forex Day Trading – Choosing What to Trade – You can trade anything from baseball cards to orange juice futures but you cannot trade them all and expect to do well in all of them. The name of the game is specialization and you need to become an expert in one asset to learn the nuances of the market. In choosing what you are going to trade, you need to look for an asset market that give you the ability to stretch your dollar and use leverage, allows you to buy or sell easily, quickly and as often as possible and finally, you ideally want an asset that does not have large capital requirements. Let us look at these market qualities in a little more detail. First of all, you want to have the ability to trade on borrowed money and this is called leverage or margin. You will typically be allowed to borrow on the securities you already hold in a brokerage and the percentage of leverage will depend on the volatility of the securities. For stocks and stock mutual funds, it is typically 50% and it will be more for bonds which do not fluctuate in value as much. And not all securities are marginable, like penny stocks which can be extremely speculative. Next, you want a very liquid market that has a lot of buyers and sellers so you can buy or sell at any time during the day or even 24 An example of an illiquid market is real estate where you cannot buy and sell a house or building in the same day, let alone the same hour, and an example of a liquid …






