2007-06-02 00:12:15 · 3 answers · asked by ted 1 in Business & Finance ➔ Investing
Quite a few people lost money in the Forex market during the Feb/Mar market correction.
I have not seen any evidence that any losses were exclusive to people that traded FreedomRocks. I know many people that lost money in the market using all sorts of different methods, systems, techniques and strategies. By it's very nature the Forex market has periods of gain and periods of losses.
The only people that I personally know that actually had a margin call with FreedomRocks admitted that they were using margins well outside the recommended thresholds or had included the highly risky USD/JPY in their trading position. I also know of one person that was simply unfortunate enough to enter the market at the wrong time and just watched their account head south. This is why I now discuss market timing with all my team mates.
People need to realize that the Forex market involves a certain amount of risk regardless of what system one decides to use.
The way to manage the frequent market corrections is to utilize stop losses. These can be either a programmatic stop loss entered into your trading platform or a mental stop loss as part of your personal money management plan where you simply have the discipline to exit your positions if your account drops by XX%.
Serious losses incurred in the Forex marketplace are the result of inexperience or the lack of an understanding of basic money management principles.....not the tool that one chooses to utilize.
No matter what methodology you decide on for your Forex adventure it is critical to have a good game plan on market entry and market exit.
ps Some people easily mistake the FreedomRocks strategy to be the same as the "carry trade" that is mentioned quite a bit in the news these days. Actually the carry trade that some experts predict will come "unwound" is based on borrowing the very inexpensive JPY at 1/4% and using it to purchase the higher paying AUD, NZD or GBP paying up to 7.25% interest. The difference results in a net interest rate profit of up to 7%. Speculative traders also use a high leverage with this trade generating a very high profit.....with very high risk.
Freedom Rocks methodology is a simple hedge trade usually involving the EUR/USD and USD/CHF, two closely correlated pairs which are not at all in the same arena as the JPY carry trades. FreedomRocks is quite vocal in cautioning against trading riskier pairs like the USD/JPY.
2007-06-02 06:29:39 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can really be burned by any "scheme" to make money in the Forex market. It is one of the most dangerous markets in the world to trade in.
Freedom Rocks is a cleaver Scheme which may win for a while and then in a week you can be wiped out. It's based on the "Carry Trade"... If you read the business section of most newspapers the most repeated story these days is the pending reversal of the "carry trade". So what made money will now lose as much!
FX is for the serious investor.... not the person looking to get rich quick (and easy)....
2007-06-02 13:53:10 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Lots of people
2007-06-02 11:30:17 · answer #3 · answered by bob shark 7 · 0⤊ 1⤋