All good and fine, but where can a small investor come up with $100,000? He doesn't have to. Many brokerage will allow you to leverage at rates of 100 to 1 and even higher. So you put up $1000 and the brokerage lends you the rest to make your trade (buying on margin). There are even some that allow you to start with as little as $500 and even $250 and have leverage ratios as high as 200 to 1. And they also allow you to purchase smaller lots of $10,000.

A great advantage of FOREX trading is its hours of operation. It goes 24 hours per day starting on Sunday at 5pm ET ending on Friday at 4 pm ET. And there is a lot of volume and liquidity in the currency market making it very likely that you will be able to make your trade at the price you want.

But be forewarned, you can lose a lot of money if you are not prepared before you begin trading. But with some knowledge and practice there is plenty of money to be made in FOREX investing.

What is a commodity? Well they are mostly hard goods that are commonly used every day. Things such as wheat and corn, lumber and steel, gold and oil, even currencies. The nice thing about futures investing is that it is a margin trade, you make a leveraged purchase. So say gold is selling at $400 per ounce. A gold futures contract holds 100 ounces of gold, therefore the contract is $40,000. But normally you only put up 10% so you get $40,000 dollars worth of gold for $4000. So if gold goes up by say 15% you have a nice profit of $6000 (minus commissions).

Also the commissions are low on futures investing so you keep more of your profits. Plus this market is open and a lot less succeptible to insider trading. But be sure to learn as much as you can about futures and commodity trading before you begin. There is a lot of money to be made, but a lot to be lost as well.

The goal of the momentum trader is to buy just before the stock is going to make its move and then close the position before the movement ends or when they have hit their desired price point.

This form of trading is not for the weak of heart, study up, learn all you can, and try some practice trading before you jump in.

Happy investing.

You can read about it here in the Wall Street Journal

But this article in the New York Times may help clear up some of your questions:

The Issue Is Payback Not Bailout

A good read I highly recommend it.