Is Forex For You?
Have you noticed the sudden popularity of Forex trading? It is easily the largest financial market, with over 2.2 trillion dollars changing hands each day. In fact, this is ten times the size of the next largest financial market, the New York Stock Exchange. So is online Forex trading a legitimate investment option or simply a glorified legalized gambling opportunity?
The following are indicators that Forex Trading is NOT for you.
- You are a Dummy or Complete Idiot. I have noticed that the folks who produce the Dummies books and the Complete Idiots books have not touched Forex. I believe this means that you fall into one of those two categories (Dummies or Complete Idiots) that Forex is NOT for you.
- You are looking for a quick buck. Forex is not a get-rich-quick scheme. For everyone who strikes it rich quickly, there is someone else who had large early losses.
- Your family is on a very tight budget and your spouse or significant other is uncomfortable with the risks involved with Forex trading. Money you invest in Forex trading should be money that you either both agree can be used for this purpose or else money that is truly yours. No one wants to find out their overtime check was transferred to their spouse's Forex account and now there is nothing left for the car payment.
And the following indicates that Forex Trading could be for you.
- You have a healthy dose of self-discipline - Successful forex traders follow a system and rules and do not let their emotions affect their decisions.
- You plan to study Forex and investing before placing more than a nominal amount in your Forex account. See links below for advice on Forex trading systems and investing systems in general.
- You are clear with yourself and your spouse how much money you will add to a Forex account and at what point you will simply close the account. When I say you are clear, WRITE IT DOWN.
Two New Sources of Info on Forex Trading
Okay, new to me
One is Babypips.com which has Forex Education broken down by what grade you are in. These guys understand that some people need Forex kindergarten and some are almost PhD's in Forex, but all want to learn more about Forex trading.
The other is a free download of an interview with Ed Ponsi about Forex Trading and what are reasonable expectations for getting started in it, how to tell someone who is simply posing as a Forex expert from a legitimate teacher, etc.
Check them out and post opinions (or similar suggestions) in the guestbook below!
Why is Online Forex Trading So Popular?
Many Forex Trading fans also point out that Forex trading is a more level playing field than the stock market. News about national economies and the value of currencies is available via the internet at the same time to everyone. They contrast this to Wall Street where many people are privy to sales results long before they are announced to the general public and stock broker recommendations can have a dramatic effect on prices.
Forex trading does not require a lot of money to get started. Before Forex trading was available online, there was a minimum transaction size and traders were required to meet strict financial requirements. However, today large interbank units are broken into smaller lots. While each lot is worth about $100,000 (not a small amount of money in my book), Forex trades can be made through 'leverage', which allows the trade to be made for one hundredth of their value. Therefore $1,000 (US dollars) will allow you to control a $100,000 currency exchange. The most popular online forex trading systems allow you to invest amounts much smaller than $1,000.
For more details on how online forex trading works, I would suggest you go to the Easy-Forex website and download their free ebook (currently the link is on the left-hand side of the page and you have to scroll down a bit).
Considering Forex? Trading System links which you may find useful.
- Forex-Uncovered's "The Best Intraday Forex Trading System EVER"
- A Video-Based Tutorial Training That Teaches You Step-By-Step Online Forex Trading System. Instantly Downloadable for those who are eager to get started now.
- Original Turtle Trading System Rules and Information
- Richard Dennis believed that trading any asset -- stocks, bonds, currencies, futures, options, indices, currencies, whatever -- involves rules of discipline, risk management, structural planning, anticipating losses, implementation. He took a group of trading novices and gave them the Turtle Trading System Rules to see if the ability to trade could be taught. At bottom of this link page, you will see link to download original turtle trading system rules.
- Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders
- For the complete story about the the social experiment of the Turtle Trading System (described in above link), read this new book available on Amazon.
- Forex Blog | Forex Beginner | Forex Trader - The Forex Project
- Forex Project - A blog chronicling the experiences of a Forex Day Trader with the goal of trading full time - excellent reading!
Listen to Trend Following Investment Tips
Michael Covel on Trend Following at CLSA Conference In China
The great traders are not just pumping forecasts. Great trend following traders are not fundamental traders. For more go to: www.trendfollowing.com.
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Forex Trading Advice on Amazon
Currency Trading For Dummies (For Dummies (Business & Personal Finance))
Amazon Price: $16.49 (as of 07/19/2008)
The Complete Guide to Currency Trading & Investing: How to Earn High Rates of Return Safely and Take Control of Your Investments
Amazon Price: $16.47 (as of 07/19/2008)
Forex Patterns & Probabilities: Trading Strategies for Trending & Range-Bound Markets (Wiley Trading)
Amazon Price: $53.55 (as of 07/19/2008)
Forex Blog Posts from Google
- Forex Profit Accelerator UPDATES…
- I thought you'd like to hear from some of my current Forex Profit Accelerator students, so I put t...
- Practice Forex Trading with Forex Scalping
- If you are brand new to the Forex market and you want to learn how to trade without too much risk, t...
What experience if any do you have with Forex?
Any comments on Is-Forex-For-You (this lens)?
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Zarea
Great lens, I like all of links you provide so people can find more information. Gotta love Forex! Posted June 03, 2008 |
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jackvdo
The article here on "Is Forex for You" is excellent - 5 stars! Why? Because it deals with the reality of forex trading instead of just hyped up marketing crap. Anyone researching brokers - Posted January 06, 2008 |
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jodeven
I find this lens very useful! 5 stars! Author of the lens Forex Charting: It's Not As Hard As You Think, Forex Mini Account: The Best Way To Start Off Trading Forex On Low Capital Posted September 18, 2007 |
Hi BookMama, Great Lens. I have also created a lens in same niche.Here's a brief intro: : Start off with a site that allows you to place very small bets first so that you can get your feet wet, you will find that there are a lot of new players at every internet casino. Roulette is a fun game to play as it can be learnt quite quickly and there are plenty of places online such as www.EasyCasinoProfits.com that give you sound advice on how to start off with free tips and guides. Try and get a sense of what thegame entails before you risk losing any money. http://www.squidoo.com/ultimate-roulette-system/
/www.squidoo.com/ultimate-roulette-system/">click here
Posted August 29, 2007
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Minivan_Mama
Great information and well-presented. 5 Stars! Posted July 18, 2007 |
Charities Benefiting from Lens on Forex Trading and Trading Systems
Just a quick note about why I put together a lens on Forex Trading and how I chose which charities should benefit from this lens.I kept hearing about Forex trading in blogs or forums about making money online. I wanted to learn something about it. At the moment it is not for me, as I don't have the time to research it and I currently can't afford to lose any sizeable amount of money. But I thought I would save the information I gathered, in case those circumstances change AND publish it as a lens for others.
Online forex trading has spread like wildfire as people are looking to generate income. I chose two charities that target hard-working individuals who need us to invest in them in order for them to generate income to feed their families.
The first is KIVA - KIVA lends money to entrepeneurs in the developing world to help them lift themselves out of poverty. It is a very cool organization. Check it out.
The second charity that benefits from the "Is Forex For You?" lens is Modest Needs - an award-winning charity that works to stop the cycle of poverty before it starts for low-income workers struggling to afford emergency expenses like those we've all encountered before: the unexpected auto repair, the unanticipated trip to the doctor, the unusually large winter heating bill.
Modest Needs believes that EVERY person has the power to make a difference. The work done at Modest Needs is funded exclusively by the 'small change' donations of people just like you.
By visiting the lens and perhaps buying a book from Amazon from it or clicking on some of the Google ads, a tiny donation will go to each of these charities. However I think they are both awesome organizations and I encourage you to consider a small donation to them apart from your visit here.
Seriously.
