Forex.com

[corolla02]

Hi everyone;
I was wondering is anybody here who have this account?
Do you trade currencies, is it better trading currencies vs stocks?
What are advantages or disadvantages of it? Whould you prefered stocks or currencies? I need some inputs please!
I am planing to open it. What do you think?
Thank you

[sweeps]

Be prepared to lose your shirt.

[Broken Arrow]

My sister is opening one up. She says, "You can make a lot of money on it." You're not my sister are you?

With stocks, at least you "only" have to valuate the company, industry, sector, and market. With forex, you have to scale that all the way up to the entire country versus other countries.

As my sister said, you CAN make a lot of money, but you can also LOSE a lot of money as well.

Plus, you can already make plenty of money with stocks, I personally don't see why anyone would want to scale up to something that's even more difficult to valuate just to try to lose I mean make even more.

That said, everybody and their their cousin right now is betting on the U.S. dollar falling from a speeding inflation. Actually, that might be a pretty safe bet considering that the strength of the dollar has already taken a noticeable hit....

Then again, if that's the currency play you want to make, guess what we should be owning right now? That's right, Dollars! The train to buy the Yen or Franc as a hedge against the Dollar has already left station.

To reiterate sweeps, please know your risk tolerance. I'm personally not bright enough for forex, but I do know it's one of the riskest ways to trade out there. Every trader needs to focus on their risk management strategies. Nobody has had a problem dealing with gains.

[ea1776]

A couple of important notes:

Trading currency is a zero-sum game. That means for you to make money somebody else has to lose money. That means you must be at least be a well above average trader (cough * speculator * cough) to make money. And that's not even counting the commissions ("spreads") you must pay on trades (gain or loss), which makes it even tougher.

Stocks are NOT zero-sum. Therefore, we can all "get rich together" with stocks.

Also, currency trading is roughly 95% speculation, while only 5% of trading results in people actually needing to trade the currency to use it in another country, etc.

Trading forex requires a lot of skill, training, & experience and I have serious doubts about anyone "jumping right in" and making significant, consistent gains.

However, you can practice with play money on a few different sites and see how you do. I would definitely do that, along with extensive training, before putting real money to work there.

Good luck.

[Broken Arrow]

However, you can practice with play money on a few different sites and see how you do. I would definitely do that, along with extensive training, before putting real money to work there.

I think that might be the best way to start out, and Forex.com offers a virtual account you can try out. I don't have any experience with it though, so buyer beware.

Also, Investopedia has an entire section on Forex. I haven't read through these either, so please don't take my word for it.... But I've read other articles on Investopedia, and I find them to be accurate and informative.

[corolla02]

I am already in stock, so after these true comments I will stick to it only!
Thanks for all your replies!

[rizzmo]

A friend of mine works for a company that provides the HR, IT, and legal for brokerage companies that specialize in forex trading. His company charges 15 times the going rate for these services, but the offers a huge hook to the companies signing up with them ... access to capital. The standard amount they contractually place with a company is 50 million (which is what they consider to be the amount needed for entry level forex trading). They don't work with companies trading less than this amount because, statistically the failure rate more than doubles for companies trading smaller sums than this. I don't have the means to check their claims on the failure rate, but thought you would appreciate the information.