Forex System Auto Trading

inthetrade January 31st, 2010 at 10:40 am

Betting on currencies is as good as throwing your money away unless you have extensive experience of the market and information about the very large flows happening. You may make money for a while by good guessing but thats all. Anyone not in the trade is almost certain to lose their money. Why? There is no intrinsic return to currency risk. If you buy a share you get the dividend whether the share price goes up or down, ditto a bond. Put money on deposit and you get the interest. There is no similar return to forex trades, only to whatever underlying assets you may buy – which you can buy without the forex risk. The market exists so that companies/investors/people can get the fx they need to buy things abroad. If, in the process, you open up an fx exposure then you sell it to the specialist risk takers. You pay them a premium to take the risk away from you. They earn that premium because they dont mind losing money quite frequently on the risk they hold – but dont be fooled, they do charge you and they have the market knowledge to make sure they dont lose all the time. Someone you know – or who answers this – claims to have earnt money? Of course, over any period, nearly half of those guessing will earn money. Slightly more will lose. Over time they will all lose without the information advantage. Dont gamble on currencies unless you are in the trade!

MIKE January 31st, 2010 at 11:18 am

You CAN’T make money in Forex, it’s impossible

Paul U January 31st, 2010 at 12:34 pm

It took me awhile to learn how…but I average over 8% per month with a conservative trading strategy. Most people would consider it a rather boring way to trade Forex but it generates a comfortable return for myself and my team mates.