March 24, 2013
Forex investing is best done by a managed Forex accounts trader (scroll down and join the Wealth Club to find several or more) who understands the ins and outs of alternative investing using leverage in the currency market. If a person who was totally inexperienced in the Forex investment world tried to trade real money it’s likely they’d lose their shirt unless they got really lucky. There is a great deal of analysis, practical knowledge and specific investment and financial knowledge one must possess before entering this market, also known as FX or the foreign exchange market. However, some prefer this kind of trading to investing in the traditional stock market.
If you want to become a managed Forex accounts trader and lay a solid financial freedom foundation for yourself and others using leveraged currency trades, you should first of all study up on Forex. Learn all the terminology and what it means. Study the different types of trading systems and learn how to keep abreast of international news that may affect the movement of currency. The Wall Street Journal, as well as Forex specific papers, magazines, books and websites can be valuable informational resources. If you find it all too confusing and would rather have an experienced professional handle things for you, consider signing an L.P.O.A. with a trader who specializes in trading foreign currency.
But if your goal is to become a Forex managed accounts trader someday, you can gain valuable experience in this field using a demo account. For example, FXCM is an online trading platform that lets you open a free demo account stocked with $50,000 in practice money for 30 days. While this is not real money it gives you a whole month to see how you would come out if it were. This gives you a good idea of whether or not you know what you’re doing, and also as they say practice makes perfect. FXCM has a big help section if you need assistance with your demo or real money account and it also offers micro accounts you can open with as little as twenty five dollars.
But investing in this non-correlated investments market called the leveraged FX exchange trading market can be a risky proposition, but it can also be a potentially profitable one. Depending on your luck, know-how, and a variety of other factors, you can make money or lose money in this non-traditional investments arena called the FX market. This is why it is recommended you use risk capital. Risk capital is money you have designated as being disposable or expendable, just in case you lose it. Never invest money you need into high risk ventures like Forex trading. While you might suffer a loss, you might also win big which can increase your amount of risk capital and thus your profit.