I went to an introduction to FOREX (foreign exchange) class recently and they were telling us how with a good education in FOREX you can consistently make money, and good money too, since you are trading 50 or 100 times what you have in your trading account. The complete course is 00 and they were pushy for us to take the class so I didn’t feel so confident about it, but i read up on the subject a bit and did a trial trade for about 30 days, I was up a lot at one point (about 00) but in the end of the month i pretty muich broke even. WIth more knowledge and a proper education on the subject can it be a long term way of makin money?
DEAR ALL, thanks for your responses, overall you seem to think currency trading is high risk and not really a viable way of making money from home. I should have mentioned in my question that if i were to do it, i would want to rely more on technical analysis and all the ratios and different theorems etc. I would also be making trades that are from about 30 minutes to at most one day. Does this change anyones opinion on the subject?
Trading indicators are best used along with money management and good risk control, using trading indicators alone will not enable you to be a successful trader, even if you learn everything about currency trading the market is just too random and unless risk is controlled, over time your account will slowly get wiped out, regardless how good a “trader” you think you are.
This question was about currency trading and there have been some pretty good answers that should help in your trading, and especially in relation to currency trading, the answer has been posted in the categories listed below:
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I’ve only been trading the FOREX a few months, and have been doing rather well. I’ve traded stocks, stock index futures, and options for about 15 years, but got tired of the meaningless volatility with no direction.
The Forex is much simpler than the stock market, and easier to track. There are only six major currency pairs: Euro, British Pound, Swissy, Australian Dollar, Canadian Dollar, and the Yen. With the six major currencies, you will never have liquidity problems, and the spreads are good to reasonable (Currencies are always traded in pairs – EUR/USD, USD/CAD, etc.). And liquidity, well, the stock market trades several hundred million dollars a day, but the Forex trades several trillion dollars a day. Some invividual or institution with a few billion dollars is not going to come in and push this market.
You can certainly trade the Chinese Yuan against the Algerian dinar, but the spread is going to be huge, the currency manipulated, and it might take a long time to move. And the liquidity will be horrible, so you can’t use market orders and you won’t get your price.
Like most of you, I thought you had to know a lot about the fundamentals of each of the foreign countries, and there are so many countries. But I’ve just reduced this list down to six majors, and the activities of these six are well known. Like the U.S., they each publish a CPI, and GDP, and Unemployment Rates, and are regularly updating the markets on the biggest influence: interest rates. I’ve always prided myself as a pure Technical Analyst. Fundamentals are for geeks and goobers; only price matters. But if you’re going to trade the Forex, you better pay attention to these reports.
The currencies trend better than any other investment vehicle, and much better than the constant whipsaws in the stock market., so many systems work here that will not work elsewhere. If you can trade the stock market, you can trade the Forex.
With any leveraged position, you must use stops. Good money management is essential here. The gamblers will blow out twice as fast here. More leverage is always more risky, but you do not have to use maximum leverage. You can trade one contract with only $1,000 in a standard account for maximum leverage, or you can trade one contract for every $10,000 you have in the account, or one for every $100,00 you have in the account, and do away with the leverage altogether.
I got so frustrated with the stock market going a different direction almost every day, until you anticipated it, then it changed. It was turning us all into Day Traders. With the Forex, the trend really is your friend.
Like any trading occupation, it requires good data and good charting and analysis software, and you need a good news source on Forex. The only platform that offers all of these, that I’m aware of, is called PremiereTrade. They also offer good training and instruction and message boards that works well for seeing it in action and getting your questions answered.
Check it out.
I am interested in currency trading, as well. I took an online selfpaced course at a similar cost to yours. I have been day trading only and recently invested in companies located in Brazilian and Isreal. I sold Tefron stock 4-5 weeks ago when I heard news of the Isreal-Palestinian ceasefire. Internaitional economics and politics play an enormous role in currency trades. I sold ITU when I read of corruption in the Brazilian government banking system. However, many analysts are recommending Brazil, Canada, and Australia are good investments. I’d like to hear directly from someone who is making money in currency trading and exactly how it works -step by step.
Yes.
If you have less than $1,000,000.00 USD I suggest you to stay away from FOREX.
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Another approach might be to trade the new ETFs which track foreign currencies. Symbols are FXA, FXB, FXC, FXF, FXS, FXM.
The Forex market is full of scammers and people who sell questionable products than make them rich and not you. I would advise against Forex trading. You are likely to lose your money. Forex is useful to companies that make money in one country and need to exchange it for money in another country, but most individuals who trade Forex lose money. Read the links:
These trial trade programs do not always properly simulate the market. I would not trust them.
yes it is but if your ready to risk some money
Forex trading is really a gamble. Theres so many factors to consider when trading in currency…eg: political conditions of a country are a major factor in determining the strength of a currency.
Unfortunately too many people are just trying to make a quick buck with Forex trading. You must remember that world markets are very volatile at this moment in time with regards to the N.Korean nuclear situation. Do you understand that if you were reading an online news bulletin and the headline read "North Korean nuclear situation", it is far less alarming than "North Korean Nuclear Crisis"…stuff like this could determine Forex changes.