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Forex Trading - A Maze Of Misinformation
If you want to get into something that will totally confuse
you and send you to the poor house at the same time then try
getting into Forex trading which is the buying and selling of
currency. An associate of mine has this horror story to share.
For the sake of protecting his already fragile shattered ego
because of this horrible experience we'll call him Joe.
"Hi, my name is Joe. I wanted to get into Forex trading or the
buying and selling of currency. For example, buying Japanese
Yen at one price and selling it at another price to make a
profit. Sounds simple, but trust me, it is far from it.
For starters, if you know nothing about forex trading, you at
least want to get some kind of an education about it that
won't cost you anything. Therein lies the first problem. Try
doing a search engine lookup on "what is forex trading" or
"forex trading definition" and you'll find a zillion links to
all these places that will teach you about forex trading, for
a fee. So in other words before I can even learn about forex
trading I have to invest money just to find out what it is? If
that doesn't sound fishy to begin with.
Well, eventually I found enough of a definition of forex
trading to know what it was and what it involved. The next
problem was how to get into it. Do I go to an online broker?
Which one? So I did another Internet search. Let me tell you,
there are more places online that will be more than happy to
take your business so you can't possibly know which one to go
to unless you know someone who knows someone.
Then, to compound the problem even more you run into these
listings that talk about forex scams. Huh? I guess I shouldn't
have been surprised but how can you run a forex scam? Well,
let me clear that one up right now. A bogus company acts as a
broker for your money. You buy your currency at whatever price
and then what happens is the company essentially runs off with
your money and closes their site down, opening it up someplace
else. You're now out your investment. That's only one of many
ways that companies are scamming people getting into forex
trading, but I'm sure you get the idea.
Once you find a legitimate company there are all the complex
strategies you have to learn. There's looking for exit and
entrance signs. In other words certain indicators that
supposedly tell you when to buy the currency and when to sell.
This is, of course, all guess work as nobody can really
predict what a currency is going to sell for at any given
time. You know this is the case when you see web sites with
the following advertisement, "Trade forex with up to 80%
accurate forecasts." In other words 20% of the time I'm going
to lose money. This is what they admit to. You know it's never
that good.
But here's the worst part of forex trading and the thing that
most people don't realize. The percentage that your purchase
goes up before you sell is so minuscule that the only way to
make any decent amount of money is to invest hundreds of
thousands of dollars. People who think they can invest $25 or
even $250 are dreaming if they think they will make anything
worth talking about. With that kind of investment we are
talking about pennies in profit.
Bottom line. After everything I learned, which took me weeks
of my time, I eventually ended up chucking the whole idea of
forex trading. That's my horror story. Weeks of my valuable
time wasted on something that I had no business getting into
in the first place, given the poor rate of return and the
possibility of being scammed.
So unless you have a lot of money to burn my suggestion is to
stay away from forex trading. I just wish I knew that before I
ever started." |
