Forex Trading

[DanielSalesConsultant]

I have absolutely no idea what Forex Trading is and if it is a scam or not.

But after just watching a Youtube video (by mistake) the end of the vidoe said this is what she does to afford a Lamborghini Gallardo and her company was "Infinite Prosperity". So I thought oh okay so I wonder what she does.

Suddenly typing the name in to Google it said Forex Trading on her web meta title.

Is this a scam or is it real? I done some work a few months ago for a Forex Trader and I asked him straight and he said it can be seen as a scam and realistically it can only be done if you're at the top.

What is the opinion of this forum?

 

[DanielSalesConsultant]

I can go and hire a range rover, a ferrari and lamorghini and hire a house tomorrow and say I own them and this is my house and this is what I do and get money off a pipe dream from people is this what forex essentially is? People with a job that rented ferraris for a day and just went off to start a scam?

 

[ANye]

Hi, I believe you may misunderstand the different areas of Forex.

A Forex Trader, is someone who uses the FX market (currency market) fluctuations to make money. Effectively they are making bets on whether the exchange rate will move up or down and this can be seen as another form of gambling. There are Forex Traders out there they have made a lot of money, but at the same time there are more people out there that have lost even more. Forex traders come in 2 forms, those who trade with their own money and those who trade with investors’ money.

On the other side of the FX market you have FX Brokers who deal in the physical delivery side of currency. These are companies that are set up and authorised by the FCA (previously the FSA). These companies are there to help companies and individuals manage their currency risk when purchasing assets overseas (Houses, cars, boats, planes or materials etc for companies) or they will help individuals manage their currency requirements when they are looking to migrate.

Under the FCA Authorisation, FX Brokers are not able to help client ‘trade’ the FX market or gamble. They can only help you if you have a requirement to convert funds into another currency. They must receive funds from clients in to a ‘Segregated Client Account’ which mean all client funds are held separate from company assets to ensure the security of clients funds. Typically a foreign exchange broker can beat the banks by up to 4% on any international money transfer which is why there is a business out there for them.

I hope this clears up your confusion but if you would like to discuss this further please feel free to get in touch.

 

[tj1979x]

It's not something I know a great deal about but a friend of mine talks about it a lot and thinks it's great. He says that it takes a while until you get to make any money but it's worth persevering. He used to get up early and check it first thing in the morning before going to work and he did eventually start getting something back.
He told me to look at this http://www.binaryoptionstrategy.eu to get a better idea of what it involves but he basically says that he likes it because he can do it from anywhere he has his laptop and an internet connection and it's easily accessible with 24 hr trading.

Not sure he's quite ready to buy a porsche yet though...

 

[tacticalsales]

That website "infinite prosperity" is Amy Sangsters website, some of her tactics and claims are questionable but her boyfriend Robert Himler is also an owner of lots of exotic cars.

Getting back to the Forex side of things, what make Forex so "easy" to trade in comparison to Equities is that the Forex trades are conducts 9 times out of 10 just by whats on the chart.

If you can start to understand the charts and trends then you'll be able to start trading, however it's not easy as it looks. It's all about understanding how the large corporates work when they are involved with trading, I strongly advise reading a serious amount of books, ones that are written by reputable authors and traders.

Avoid these Youtube videos, they are all just there to sell you false dreams or part of an affiliate marketing campaign. If they are really on $10,000 per day, why are they bragging about it and asking for membership fee's etc?

The best traders don't make videos until they retire or get bored of the hectic traders lifestyle. From what I've heard it's a life few get tired of.

 

[SetupaCompany]

Forex itself is not a scam, I was involved in it (not so much as a trader) for several years and met many people who were making good money from it.

But at the same time there are also people making good money trading shares and even outright gambling - it doesn't mean its a get rich quick or even easy option otherwise we would all be doing it!

I wouldn't get sucked in by anyone who feels they need to show you big houses and flash cars to convince you though - that kind of marketing should always set alarm bells ringing. Instead look for courses or tuition from people who do not guarantee results and clearly outline all the risks from the start - that way you already know they are more trustworthy than someone telling you that this time next year you will be a millionaire Rodney.

 

[huibosales008]

it's real,just like stocks.but the risks is much higher.

 

[SetupaCompany]

it's real,just like stocks.but the risks is much higher.

Not really, you can put stop-loss on just as you can with stocks so the risk is about the same on both. Only difference is that Forex tends to change more quickly but even then, there are plenty of stocks that have massive gains or falls in a very short space of time.

 

[tacticalsales]

Not to mention not volume indicators, which contributes to the difficulty in backing up trend theories.

I personally have learnt a lot more from reading a ton of books and looking on solid reliable sources of trading information, notably investopedia and khan academy to name just a tiny amount.

I've avoided Youtube training videos like the plague.

Also spend a serious amount of time on stocktwits.com - great feedback and even better place to pick up some knowledge. Again, look at the info on there from all angles as some people like to feed newbies with false hope and even falser guidance.

You'll soon find the people to follow and trust.

 

[Paul Gregory]

Well, there is one link on this thread and it is trying to sell me something, I am not too sure what.
What is does say is I can invest small sums.
If I play the stock market and use a broker, the cost of buying or selling is about £10, its a while since I looked into it. So the minimum investment would be about £1000 per 1% increase in share value to break even, but as I would need to buy in the first place for £10 then that becomes £2000 for a 1% increase. Obviously shares can change in increments other than 1%.

I am a gambling man, I once spent 6 months in the bookies trying the beat the system. My biggest problem was sticking to my strategy. The idea was to put on an accumulator bet every morning, not using the premade accumulator form but writing out my own. I would go in to the bookies at lunch and if my bets had lost I would be tempted to bet on anything, I just could not resist it. The system just about broke even, may be it made a bit, but...

I did some sums, must be over ten years ago and Scottish and Newcastle where in the press, every time the press made an announcement the share value was predictable. I had a theoretical bet and started with a theoretical £1000, I forget the exact figures but I made a theoretical couple of hundred over a week or so.

I like the idea of this, I just don't know how to go about it.
I am prepared to buy £100 worth of foreign currency, and sell it ... Maybe I will buy some more, maybe increase my stake.

How do I do that with a click of the mouse?

 

[Pish_Pash]

it's real,just like stocks.but the risks is much higher.

I would argue that currency markets are far more 'true' than equities ....in my opinion there is no real 'price discovery' operating in equity markets currently. By that I mean stocks being priced based on company earnings, forward earnings ...nowadays it's all about QE pumping up markets...look at what happened over the past few days...the FED were meant to be hiking rates up, but after the recent large drops on the Dow, there isn't much likelihood that the FED will raise rates anytime soon ....& there's now whispers of QE4! It's as if stock markets aren't ever meant to fall.

I like the idea of this, I just don't know how to go about it.

I am prepared to buy £100 worth of foreign currency, and sell it ... Maybe I will buy some more, maybe increase my stake.

How do I do that with a click of the mouse?

if you want to play the currency markets with such a low amount (£100), you'd be best spread betting (the notion of actually buying & owning the foreign currency with £100 is a non starter - the spread will be a killer...and then there's commission) ...but IMHO, you may as well go down your local amusement arcade & spend your £100 on the slot machines, because without in-depth knowledge of the to/fro of global economies, you'd be out & out gambling.

 

[Red Wood]

Forex, used to be my bread and butter, got back into it a bit at the start of this year, got my returns then have left it again. I Love to trade, but to make money you need time, i used to watch my trades like a hawk, more of a scalper or a intra day trader to be honest

 

[michael trader]

Have anyone tried forex trading with binary option robot? I found this good sitee binaryoptionrobotinfo.com which have a lot of information about it. It seems like interesting trading software and it is free, should I try it?

 

[Paul Gregory]

You say £100 is a non starter, I don't much want to put more than I can afford to lose to start with.

What are the costs involved?

The other guy says about binary trading... I did some sums on the stock market and could see that when the media made an announcement the markets changed then bounced back, investors got nervous and would bail out quick, that was the time to buy.
If I do this my strategy is to see paturns in predictable media hype.

 

[Pish_Pash]

You say £100 is a non starter, I don't much want to put more than I can afford to lose to start with.

What are the costs involved?

You said this earlier...

I am prepared to buy £100 worth of foreign currency, and sell it ... Maybe I will buy some more, maybe increase my stake.

perhaps it's a terminology thing, but if you meant buying £100 worth of physical foreign currency...then for £100, you can only buy from places like the Post Office, a High St bank, bureau de exchange etc. There spread is massive (the difference between the price you buy & the price you sell) & then there's commission....seriously...you can't trade physical currencies with £100.

if you instead use £100 to dabble in spread betting on currencies, then perhaps....but frankly, with only £100 to start, it'll take you a very long time to get any traction (grow your money) .....& with your line of questioning, it sounds like you know zilch about the genre... it's therefore likely that your £100 would disappear in the blink of an eye.

 

[Thermodynamic Man]

Have anyone tried forex trading with binary option robot? I found this good sitee binaryoptionrobotinfo.com which have a lot of information about it. It seems like interesting trading software and it is free, should I try it?

Of course it is free. There are many "bots" out there wanting to invest your money.

They are free for one reason and one only. To entice you to open an account with a broker ( normally £250 minimum ).

Then you watch that disappear as quick as you like

Honestly. Do you really want some bot playing with all your hard earned?

 

[Paul Gregory]

I know near zilch, which is my reason for asking.
The next guy is saying £250 ... OK maybe I can fun to that.

How does this work?
I don't think much of the bank rates, how can I get a better deal?

I think a small investment is an option to get started.
Surely a bot doing 1000s of transactions per sec is going to incurs more cost than a single trade.

When I have money involved I am motivated to study the mechanisms involved in change of value, I do not intend to attempt to make a living from £100, if I lose my shirt its not my only shirt.

Would any one like to explain how this works, what are the costs?

I am sure lots of people are interested.

 

[Thermodynamic Man]

Go ahead then pal..... lose your shirt. Let us know when you buy a new one

 

[Pish_Pash]

I concur...shirts will be lost (on the basis if anyone is having to ask a generic business forum for how to dabble in currency trading ...money will evaporate in short order)

 

[boring-friday]

95% of the websites advertising it won't be making any money, its 1 of the highest competition affiliate marketing niches.
Having said that one of my best friends does it and I'm just helping him make a site now, he spread bets and apparently if he has another income he won't have to pay any tax on his forex profits as he spread bets and it counts as gambling.
Theres Fundamental analysis which is trading based on how a company is actually doing but he says this is pretty much pointless for short term trades as others will already know this before you and the price will of already taken this into account.
Then theres technical analysis which is just studying the graphs and the small price movements/trends.
Same as anything though like SEO,PPC,Starting a business, the majority of people will lose money doing it and a few will make a lot. My friend goes on psychology courses all round the world, he says thats the hardest part detaching yourself from any emotions, I'd be shtiting a brick if I had £10k on whether the $ goes up or down 0.001. Theres plenty of dummy accounts you can trade with fake cash though

 

[Paul Gregory]

So how do you actually do it, one post says broker...
What does it cost to do one transaction?

I had £2K on a horse and stood in the bookies to see it lose...owch!

I like a flutter ... How do I do this?

I think watching the market movements as the media announce figures gives a realistic betting rationale, the markets respond to announcements, robots do not understand announcements so at this point humans have an advantage. The big investors are robots.

When I was using the bookies for a few months, I was betting against the computer because the computer will respond in a predictable way, horses, riders, form, weather and turf conditions did not come into it. If the favourite has lost today the odds go up on the favourite in the next race, I was using this fact to manipulate the odds. I did OK.

You get barred from the bookies if you win so online betting is out, I had to use different bookies and go in personally each morn.

Tell me step by step ... How do I do this.

 

[VAL]

Forex trading is very very risky for a newbie, about 80 percent of day traders retail loose their money, because in order to make money you trade on margin which it depends it could be 100-200/1 , which means that you borrow that much for every dollar.
Forex trades 24 hours a day 5 days a week and any news can move the markets from anywhere in the world.My advice if you playing with your savings stay away from it if you do not have an idea what you doing.
I traded both stocks and forex and and by far stocks is way better but again for both you have to be long term in it and not day trading.
You have to follow the economic news and analize not just play like its a casino.

 

[MarcusCornelius]

I suggest to try virtual currency trading first. That way you will get understanding if it is good business for you or now. My opinion is that it depends on character - if you have steel nervers, not afraid to lose money (assuming you can afford it of course) and can learn fast then you can do that.

One time I tried virtual FX trading. In first three days I've made approx. $3000 and regretted it was not real trading. However, a week later I've lost around $8000 and I was happy it was NOT real money.

 

[MrBinary]

About 5% of Forex Traders actually earn money, all those landing pages with cool videos and exotic cars on the background is a scam. They say it is simple - it's not, they sell you a profitable strategy - it doesn't work.

If you really want to earn money by trading, you need to understand the technical analysis of the markets, go try it out on demo account and then if it works go into real trading! You can also try binary options which is more like betting (win/lose), less headache and better earning rates than in Forex.

 

[traderfcx]

FreshForex — fresh view on money.
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[Mark T Jones]

FreshForex — fresh view on money.
Are you looking for the broker you can easy and comfortable work with? Your chase is over! FreshForex is a reliable broker for your profitable trading. These are not just words — get the proof! For 11 years we've been helping each trader to trade in Forex market 10 minutes for withdrawal of your funds in our company 102 trading instruments for getting profit including currency pairs and contracts for difference 0% commission on deposit and withdrawal 15 most popular payment methods 0,05 seconds — the promptest execution of trades 101% is our bonus for the first deposit $0 — no minimal deposit even for ECN-account 0 pips are the swops on Sawp Free accounts for long-termed trade $10 — you can return for losing trades $20 from each lot — you won't find a better offer on partnership program 24/5 — our client support is at your service We always have something to offer our clients: promotions, bonuses and contests with real prizes. Watch all the information you are interested in on our web site. Do not doubt your choice – open an account in FreshForex company and these digits will start working for you. Welcome to freshforex.com

So seldom appropriate to use this on a business forum, but LOL

 

[Marketing Quotes]

I concur...shirts will be lost (on the basis if anyone is having to ask a generic business forum for how to dabble in currency trading ...money will evaporate in short order)

What this guy said!

Common sense seems to go a long way nowadays and it ain't so common at all

 

[Forex/Crypto]

Forex is certainly not a con.
However a lot of brokers and marketers are con artists.
Don't believe anyone who says Forex Trading is easy or that you will make money "while you sleep", they are just trying to sell you something.
Learn to trade yourself, demo mode for months first and be very careful!
Also, make sure you use a good broker. I use JAFX and have withdrawn from them many times with no issues.

 

[GraemeL]

OLD thread