The web is absolutely full of ways in which you can make money for doing no work. Or so it is claimed.
If you have been around as long as I have then you have probably come to view these claims with a degree of scepticism. You just don't get something for nothing. You will probably agree with me when I say, "You get out of life what you put into it".
Nowhere are these claims more exaggerated than in the sphere of foreign currency trading, otherwise known as the forex market.
In simple terms trading on the forex market involves buying and selling foreign currency and banking on a change in the prevailing exchange rate.
A few companies have been using the promise of high returns to drive customers to their sites. Clients are advised of the risks beforehand, but even so, many clients are not prepared for the rapid market movements and they find that within a short time their discretionary trading money becomes someone else's profits and they are out of the game!
This leaves a trail of dissatisfied customers with empty pockets and gives the forex industry a bad name. And this is not how it should be.
In fact investing a proportion of your money in the forex markets can be a very good way to diversify your investment portfolio. This is because there is very little correlation between the stock markets and currency markets.
But you need to know what you are doing if you are to survive. And by that I mean you should have some basic knowledge of how the market works, a strategy for getting into and out of your trades, some money management techniques and above all a reputable broker.
You wouldn't try and sell Real Estate without training, (the government wouldn't let you anyway).
You wouldn't open a car repair shop without training, (your friends wouldn't let you).
So don't start forex trading without getting some education and training so that you minimise the risks I talked about above.
Submitted by: Zymark Nelson
http://forex.spaces.live.com/Blog/cns!89B738DE95AE3F53!125.entry
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