11 April 2008

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.

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