I am thinking of doing Forex (currency trading) part-time.. is this wise investment?
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Answer:
I find Forex to be a very interesting (and profitable) part time venture. I suggest that you proceed slowly and learn all you can. Regardless of what most people will tell you there are some conservative strategies that can generate attractive, consistent monthly returns.
The reality is that many people do lose money trading Forex, but I am sure most of them will readily admit that they fell victim to greed, fear, a lack of education..or all three.
I would be happy to send you a report that my friend Lee wrote that does a great job explaining the Forex market and discussing a conservative strategy that is currently working quite well for us.
If you are interested I may also be able to get you a free trial which you will find is a great learning opportunity.
Send me an email if I can be of assistance and good luck to you!
Paul
pupp52@yahoo.com
If you have to ask, you don't know enough about it to be doing it. It can be risky. Also, beware. There are TONS of Forex scams online.
Forex Trading is for professionals and can only be done by someone who has the necessary skills, training and temprament. You should also have up to date information on the markets and the capability to get out of a position at any time.
Dont forget, the forex markets are littered with the egos of traders who "knew" where the rates were going !!
Losing money in currency trading is the easiest thing to do.
Any investment can be wise or foolish. The issue is leverage, with currency this is a lot. Money management becomes the issue.
Imagine that you have a slot machine that pays out 3 or of 4 times. Very hard to go wrong here you have to agree. But if you put all your money in every time you will lose it all won't you? This is why money management is important.
I would consider currency if you are lucky, --you have that sense. Your money is leveraged from an account where it is invested, that is you own stocks and other investments and you are leveraging these. So you can expect some returns on these other investments so the currency is topping this off.
If you live in the US there are some issues with regards to taxes that you may no like. You may not deduct all the losses for example. Since th currency markets are open all night 5 days a week you can get into obsessive behavior that leads to taking greater and greater risks. This type of behavior is dangerous because of the amount of leverage you are allowed, sometimes 200 to 1. You can go to bed and in the morning all your money is gone. Think before you leap. I would keep it to 100K outstanding for a whole year before you start to do more. If your account will let you trade less then this you should trade the minimum.
If you are serious use an API and write some code.
85%-90% of individuals going into Forex lose their money - quickly, so if you decide to trade Forex, do it only with money you can afford to lose. Also, don't get in it unless you are prepared to spend a good amount of time reading about and understanding the economies of other countries.
There are a lot of get-rich-quick schemes out there if you only get their software. Most of them have you trade on the carry which can work in quiet times but can make you go broke quickly in volitile times.
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