Can anybody give me a brief but very informative overview about FOREX trading?

Question

Is FOREX a good invsetment outlet? Honest answers will be highly appreciated? Rank the risks involved from a scale of 1-10, 10 being the highest. I need to be oriented about it. Thanks!

Answer 1

The FOREX market is mostly for trading, not investing. The risk is the same as in the stock market...by itself, of course, the risk in FOREX is larger because of the leverage, but if you apply money management, and have a positioning strategy that risk can be highly minimized. I cannot give a scale because every person has a different risk aversion.

"The charts" or technical analysis, does take some time to learn, but the charts and the indicators are exactly the same in stocks, so it does not require any special knowledge.

An individual can easily trade FOREX IF they apply proper money management and size positionig strategies. Because the FOREX is a 24 hour, 6 day a week market, there are plenty of profit taking opportunities.

If you have any further questions, contact me through my profile.

Thanks!

Answer 2

FOREX is an acronym for foreign exchange market.

The foreign exchange (currency or forex or FX) market exists wherever one currency is traded for another. It is by far the largest market in the world, in terms of cash value traded, and includes trading between large banks, central banks, currency speculators, multinational corporations, governments, and other financial markets and institutions. The trade happening in the forex markets across the globe currently exceeds $1.9 trillion/day (on average). Retail traders (individuals) are currently a very small part of this market and may only participate indirectly through brokers or banks and may be targets of forex scams.


cont'd

http://en.wikipedia.org/wiki/Currency_market

Answer 3

No, the FOREX is no place for individual investors to be "investing". It is very, very high risk and a lot of unsavory characters try to dupe naive investors into thinking otherwise. Those people tend to lose all their money.

It's a 10 on the risk scale.

Don't let anyone tell you otherwise.