A Personal Watershed - Is Forex For You?
One of the biggest markets for investors to open up in recent years is forex trading. A lot of people use it as an alternative to the stock market, and after the bloodletting on Wall Street last fall, who can blame them? Doing forex trading requires a lot of soul searching, and a lot of time to do well. Asking if it's right for you means knowing the following things.
The forex market is an opportunity for you to exchange foreign currencies. Unlike the stock market, you're not investing in a certain company. You're actually investing in a currency. Unlike the stock market, there are not hundreds of thousands of stocks to pick from and research. You get a short list of currencies depending on which broker you have, and you can trade them. This makes research a lot easier, and you can get good with a few currencies.
That said, the opportunities in forex don't allow quite as much growth potential as a stock program can, and forex trading is more vulnerable to inflation and currency devaluation moves by governments. Unlike a stockholder, you don't get a vote (or proxy vote) in the operations of the nation whose currency you buy. Forex trading is a 24 hour a day opportunity to make trades, with a span running from the London open to the Hong Kong close, meaning it spans more than five working days if you let it.
The ability to use leverage means there's a lot of opportunity to make money off of even tiny swings in currency prices. This can pay off handsomely on well executed manual trades, and a lot of the more common types can even be automated.
It's this automation that gets a lot of new people trading in forex; there is this strange belief that a program that can be bought for under $100 can 'automatically beat the market'. This is, when you think it through, utter lies. If such an automated system existed, the central banks would be using it themselves, with their trillions of dollars of reserves and general leverage. What you are getting for that $100 is an automated order placer; what orders and buy and sell ratios you use, you have to figure out - no computer program can replace sound judgment and good research.
Forex is a good way to pull in a decent income working from home. It's not the road to automatic easy riches, it's an investment. Like other investments you have to pay attention to it to avoid disasters, and the risk of disasters in forex is as large as the potential gains, especially with leveraged brokerage accounts. Still, it's a good way to make a lot of money working from home with nobody breathing on your neck.
The earning potential for good forex trading starts at about 40K a year, and can easily exceed 500K a year for a decent private investor. We recommend starting out small, and using conservative strategies to get the basics out of the way first. Think of them as training wheels before you start trying to swing 30,000 dollar trades on borrowed money.
The forex market is for you if you enjoy taking a risk and making a big profit. It's like a roller coaster of excitement. You will experience some losses, but the trick is to learn from them and not make the same mistake again. - 23159
The forex market is an opportunity for you to exchange foreign currencies. Unlike the stock market, you're not investing in a certain company. You're actually investing in a currency. Unlike the stock market, there are not hundreds of thousands of stocks to pick from and research. You get a short list of currencies depending on which broker you have, and you can trade them. This makes research a lot easier, and you can get good with a few currencies.
That said, the opportunities in forex don't allow quite as much growth potential as a stock program can, and forex trading is more vulnerable to inflation and currency devaluation moves by governments. Unlike a stockholder, you don't get a vote (or proxy vote) in the operations of the nation whose currency you buy. Forex trading is a 24 hour a day opportunity to make trades, with a span running from the London open to the Hong Kong close, meaning it spans more than five working days if you let it.
The ability to use leverage means there's a lot of opportunity to make money off of even tiny swings in currency prices. This can pay off handsomely on well executed manual trades, and a lot of the more common types can even be automated.
It's this automation that gets a lot of new people trading in forex; there is this strange belief that a program that can be bought for under $100 can 'automatically beat the market'. This is, when you think it through, utter lies. If such an automated system existed, the central banks would be using it themselves, with their trillions of dollars of reserves and general leverage. What you are getting for that $100 is an automated order placer; what orders and buy and sell ratios you use, you have to figure out - no computer program can replace sound judgment and good research.
Forex is a good way to pull in a decent income working from home. It's not the road to automatic easy riches, it's an investment. Like other investments you have to pay attention to it to avoid disasters, and the risk of disasters in forex is as large as the potential gains, especially with leveraged brokerage accounts. Still, it's a good way to make a lot of money working from home with nobody breathing on your neck.
The earning potential for good forex trading starts at about 40K a year, and can easily exceed 500K a year for a decent private investor. We recommend starting out small, and using conservative strategies to get the basics out of the way first. Think of them as training wheels before you start trying to swing 30,000 dollar trades on borrowed money.
The forex market is for you if you enjoy taking a risk and making a big profit. It's like a roller coaster of excitement. You will experience some losses, but the trick is to learn from them and not make the same mistake again. - 23159
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posted by X - Men @ 4:05 AM
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