I’m not sure what you mean so I will try to hit every possibility. If I could find a way to invest in a Forex trading company, much like people buy stock in stock brokers, I would probably do it. I think the FOREX market is goiing to become more and more popular among small traders and every time one of them trades the broker makes money off of the pip spread. At the same time, there have been some spectacular failures out there caused by corruption such as the now infamous Refco. Another way to invest in Forex is to use a broker traded account, where you put up the money and the broker does the trading. I have never seen statistics on this, but would not trust my broker to make trades for me, but that’s just me. I don’t trust my auto mechanic either. As for doing your own trading, I think it has great potential if your mindset is such that you make a good trader. I have friends who have made as much as $35,000 in a month trading Forex. I have others who have lost their entire trading account. It is a high risk game so unless you are either good at taking high risk and winning, or know how to always limit your risk, you will likely struggle with Forex trading. There are mathematical ways to limit your risk, but even these don’t keep you from experiencing a gambler’s ruin where every bet loses. Each month there is a broker who runs a contest for the best return among its clients. They often have 300-400% returns over the month. The broker rewards them with prizes, but what they don’t say is how many people had a loss compared to winners. Forex is a zero-sum trading business, for every winner there is a loser. In the stock market it doesn’t work that way. I traded actively for a couple of years and did not make any impressive amount of money over the long term. Sure I had days where I had incredible profits on trades that took only minutes. Other days I lost money just as fast. My strategy on Forex these days: I have been buying stock in Canadian and Latin American companies and am getting a good return. Not only are these good economies but as the American dollar falls they gain in value. Also, I no longer have to get up at 2 am to check the London market opening, or stay up all night watching my trades. Try a free demo account from one of the big Forex brokers. When you have doubled your money, and not until you have doubled it, open a real account with real money. That is the best way to find out if you can trade Forex.
Don’t spend money on fancy software that tells you when to trade. You can find the same trading signals without using the software and learn more about how the technical signals work. Join the Yahoo! Forex trading groups. Learn from others if you want to try it.
Popularity: 1% [?]