Status 14-Apr-2008

Deposit/Withdrawal:

5 000.00

Closed Trade P/L: -48.77 (One EurUsd trade)

Balance:

4 951.23

Forex Trading Comment Part 1

There's a lot of information out there on forex, some of it good and some of it misleadingly bad.
Be careful. !!
Trading forex is many times portrayed as a way to get rich fast; a home-based business. This is the furthest than from the truth. Trading forex is risky and though it may be possible to turn it into a home-based business, you need a lot of capital and experience.
To give you an idea, a very experienced and respected currency trader had the following yearly returns:

• 71% in 2004
• 433% in 2005
• 53% in 2006
• 30% in 2007.

Let's just say for a minute that you were as successful as this trader and started 2007 trading forex as a home-based business with $5000.
Could you live on the $1500 you made in 2007?
I doubt it. I'm not trying to discourage you from trying but I think it's important to be realistic.
If you dive into currency trading with unrealistic expectations, you're not going to get far.

Some useful links for forex

Before trading on forex you need to learn how forex works.

• http://www.fxstreet.com/fundamental/economic-calendar/
• http://www.thomsonfxhub.com/fxhub/index.jsf

The Foreign Exchange

The Foreign Exchange, also referred to as the "Forex" or "Spot FX" market, is the largest financial market in the world, with over $1.2 trillion changing hands every single day. If you compare that to the $25 billion a day volume that the New York Stock Exchange trades, you see how giant the Foreign Exchange really is. In fact it is three times larger than all of the US Equity and Treasury markets combined!

I trade today nearly only on Forex. To show you how forex can be nice or kill you.
I open a small account as demo-live account.

2008.04.07

balance

Deposit

5 000.00 Eur