If so, please share your thoughts with the rest of us -- I'd love to hear your insights. It is important to note that Forex trading is not easy. Eugene Krabs May 10, at I own currencies, but non-margined and in a deposit account. Forex traders can have perfectly legitimate reasons for executing the trades they do.
You're right on both counts; it is pure speculation and you can lose your shirt in microseconds if you aren't paying attention, however, you can make really decent profits on a little investment - especially since most trading is done on margin. So, if you want to make profit in excess of a few cents per transaction, you have to margin. I own currencies, but non-margined and in a deposit account. Rod Ferguson May 07, at Kim May 07, at Param May 08, at The way it was presented to me had the smell of SCAM all over it.
After reading these comments, I'm glad I stayed away. Craig May 08, at For example, if you believe that the US Dollar is unusually strong right now, and will decline in the next 10 years not 10 days!!
I held Chinese Renmimbi for several years, and made some money but not a spectacular amount. One easy legitimate way to do this is through Everbank - they offer money market accounts and CDs denominated in many foreign currencies. Just be aware that you are not protected from the fluctuation in exchange rates by FDIC insurance. Mark May 08, at Rod Ferguson May 08, at I'm not entirely sure why people have such an aversion to forex trading.
It's a perfectly legitimate endeavor. Also, Forex is not necessarily speculation. Forex traders can have perfectly legitimate reasons for executing the trades they do. With regular stock trading, there are two major strategies for trading: With fundamental trading, the investor is seeking to make money off the appreciation of a stock due to its fundamental values -- perhaps the company is a good company, but it's stock price is just a bit low right now.
With technical trading, a trader is seeking to make money off the short-term fluctuations in stock price. The basic idea is that investor psychology is predictable, so a stock price is also predictable given past price movements.
These same strategies also exist in Forex trading. I might think the USD will drop in relation to the EUR, given current geopolitical events -- like, for instance, the current US government is running a massive and ever-increasing deficit, and China is no longer willing to finance such a deficit.
I might take a position accordingly. Technical forex traders make money using price movements, the same way technical stock traders do. Now, as with everything, you have to know what you're doing. You can't just plunge headfirst into forex trading and expect to become rich. You also can't just go out and buy random stocks and expect to become rich.
You have to know what you're doing. Don't invest in Forex if you don't know what you're doing. Also, I will admit that it is harder to invest in currencies vs stocks, because as a previous poster mentioned, forex is a zero-sum game. With stocks at least, you can be reasonably sure they will go up in the long term. With forex, prices will most likely remain flat, or run in a very cyclical pattern in the long term. But, while it may be harder, it doesn't make forex any less legitimate.
Rick May 08, at Dave May 08, at I've built very high-speed forex trading applications for my day job and wouldn't fancy going up against them in the evening. We're talking millisecond response times to scalp the unwary.. Tim May 09, at I don't agree that Forex is a scam. However, the level of risk is extraordinary.
I trade stocks on a regular basis, but I too will not touch Forex with a ten foot pole. Stocks are more than good enough for me. Eugene Krabs May 10, at It is important to note that Forex trading is not easy.
It can be very difficult to make foreign exchange transactions accurately and efficiently. However, in the forex market, there is no such thing as a consistent market. Conditions are changing all the time. The past has little effect on the future in a changing market. There are too many variables to consider. Beginners know nothing about trading or how forex markets behave, so they will not understand how the robot works, what environments they are best suited for, or how to tweak and adjust the system.
It is best to actually learn how to trade consistently before you make the decision to let a program do it for you. Think about it this way: Would you give a total stranger with no brain to boot! Shoot, even the quant funds and algorithmic traders on Wall Street can lose money, and they have Ph. It's not the load that breaks you down, it's the way you carry it. Partner Center Find a Broker.
Options du chapitre 15 sur les indices boursiers et les devises | Système de trading simple | Stratégie forex sûre | Système de trading eurusd | Foreex live spreads | Modification des options de stock | Temps de session forex | Systèmes de négociation électronique boursière | Examen de la stratégie de négociation des options binaires |