Forex trading, unlike the stock market is extremely risky.
They use rediculously high leverage like 100 to 1, so that if you invest $1,000, and buy $100,000 worth of a currency, and it drops by only 1%, you have lost all of your money. You lose you rmoney even if the currency goes back up 1 second later.
Forex is one of the most misleading investments.
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Forex=Foreign exchange. A form of legalized gambling.
The only way I’ve found to reliably earn $1 million is to get a job paying $100,000 and stay for 10 years.
Comment by Feeling Mutual — July 5, 2009 @ 12:49 pm
I have seen many websites that claim you can make fantastic profits in Forex. My impression is that they are making ridiculous exaggerations. I have never seen one documented case of someone turning $1000 dollars into 1 million using Forex. Most people who do Forex trading LOSE money. If you don’t believe me, do a web search on the words FOREX and LOSE. Pretty well every site admits that most people lose money.
You can make money slowly with a diversified portfolio of stocks and bonds. Most people who try get-rich-quick schemes lose money. That includes Forex, daytrading, commodities and options.
Comment by Thomas O — July 5, 2009 @ 12:49 pm
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Open an free account and get $5 reward! http://www-forex.spaces.live.com
Comment by Bill Q — July 5, 2009 @ 12:49 pm
First of all the average person is not able to consistently make “quick bucks” and certainly not able to repeat the process turning $1000 into $1,000,000.
Regardless of what you read the Forex market does not simply hand out money every day to anyone that happens to come along.
To be successful in the Forex market takes knowledge, discipline and sound money management. Most people new to the Forex market simply “play” Forex the same as they would play roulette or craps and they lose their money even faster.
Now let’s say that you were a successful Forex investor and you could generate a return of 8% per month. To grow your $1K into $1M you would need to double your money 14 times. At 8% per month you would double your money every 9 months (Rule of 72).
So it would take you 10.5 years to hit your goal. If you started with $10K it would still take you 7.5 years. This probably doesn’t qualify as “quick bucks”.
There are a couple of other things in your way….the first is taxes. Although you could perhaps defer your taxes by trading in an Individual Retirement Account. The second is your Forex expertise.
Most new Forex traders are all starry eyed and thinking that they will make a huge killing over night. It just doesn’t work that way.
There are plenty of Forex investors that generate 8% per month but they have taken the time and discipline to learn what they are doing first.
The bottom line is that Forex could offer an intelligent investor a decent return on their investment if they take a conservative long term investment approach and learn proper risk management techniques.
Good luck…..I think you will need it.
Paul
Comment by evermore — July 5, 2009 @ 12:49 pm
I’ve never heard of something crazy like this.
Forex? if it’s true then it must be very popular then how come I’ve never heard of Forex trading?
Comment by Paul U — July 5, 2009 @ 12:49 pm
No, there are definitely other ways of converting $1000 into $1million.
Try betting $1000 on the high roller’s roulette table.
Or the blackjack table.
Or the craps table.
Remember the casino will kick you out if you start to get lucky so you need to hit several casinos and win 100 hands in the row.
FX is a zero sum game. Any kind of small move will wipe you out if you are leveraged too highly. You are gambling with FX if you think you can turn $1000 into $1Mil.
Comment by Live Music Videos — July 5, 2009 @ 12:49 pm