Whoop Dey'eeiz
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FOREX is only good if you have a ton of money and a ton of time on your hands. The margin percentages are very small (like day trading). Stocks are risky as well, but offer a better chance for making money with a smaller investment.
My uncle lost 10 grand in a forex scam.
I have $6250 our of an original $6500 in stocks. I've been as high as $7000, but got brutalized by the market slump (was down to under $6000). |
Shelly
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First off, let me start by saying, this is only a suggestion. I am not trying to change your mind on how to invest. I am merely suggesting this to you as an option you might consider.
I am not well educated in Forex currency trading so I hope this makes sense to you.
Recently, at my favorite website, I came across a section on International CD's. These Certificates of Deposit, which are insured by the Government of the issuing Country, offer the opportunity to earn a set interest for parking your money in their currency. And, if the currency fluctuation moves in your favor, that will make your overall return higher.
Of course if the currency move goes against you, it will lower your gauranteed return, or even wipe it out.
Let me give you an example. The Icelandic Krona CD is paying 12.14% APY. Now, if the dollar moves against the Krona, the rate of return will be lower. If it moves more than 12.14%, you will lose money. However, if the Krona moves up against the dollar, lets say 4%, your overall return will be 16.14% in a Government gauranteed CD.
Do you see how much the risk level falls in these International CD's?
If you have good information that a particular currency is going to rise against the dollar, then you might consider investing in an International CD that is insured by the Govt. You will receive the agreed upon interest as well as the currency gain, in a relatively safe environment.
The only risk is the currency fluctuation. Once again, I am not a Forex currency trader, so I do not know how risky trading currencies truly is. But I have been told, and I have read many posts in this forum, that it is very risky.
I just want to present this as an option for you to consider. I hope I can help people understand all of the possible choices they have available. These International CD's can be purchased through a specific Bank right here in the USA.
Best of Luck. |
MM
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Forex itself is not a scam. There may be particular forex brokers who are scammers, but in the U.S. if you open an account with a company that is a member of the National Futures Association (NFA) you'll be okay.
The problem with Forex is not scamming, the problem is the same problem as stocks. It's a problem of "predictability." How is one to "predict" future prices?
The level of difficulty of this problem is roughly the same, whether you're talking about forex, stocks, futures, or any other kind of trading.
About 3% of all traders make money in the long run. Of this 3%, a good portion do it through pure dumb luck without realizing it.
There's also another group of people who make money buying and selling stocks: company executives trading on "inside" knowledge. |
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