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A:  No, what you’re suggesting is, to be blunt, stupid.
To actually buy $100 of a foreign currency is very expensive. First, your bank will charge you a fee. Mine charges $2.00. Then they sell you the currency at a disadvantageous price. Let’s say you’re buying Euros. The value of the Euro may be $1.32 but they’ll charge something like $1.35. So, you’re out over 2% and you have some Euros. Now, you can’t earn any money on your Euros. No one will let you deposit them in an account that will earn interest so they’re just sitting there.
But, let’s say you’re right and the Euro appreciates 10% against the dollar. You have to pay another $2 fee to change them back into dollars (plus the spread between what they give and what they’re worth, $1.32 vs. $1.35 in the previous example.). You will have made roughly 7.58 Euros, or about $10, less the original $2 fee, less the second $2 fee or about $6. Whoopee.
And, it’s not guaranteed that the currency you buy will appreciate. If inflation picks back up a little and the Fed raises interest rates again then all currencies will lose value against the dollar.
The expenses involved in what you’re trying to do will increase your risk of loss dramatically. This is the same reason that low cost stock market strategies, such as index funds, are so popular.

A:  You should be overwhelmed by the material out there!
Make a point with yourself not to trade Forex for a year. Take that year to learn the fundemental movements of the currency market & learn technical analysis. You may want to trade stocks using technical analysis in the stock market first (for a year or two), to get a “feel”.
96% of all new Forex traders lose their accounts in the first 3-6 months. With all the hype out there….. you can be convinced that trading Forex is not that hard….. worse….. there are “services’ that will suggest incredible returns………. don’t believe it for a minute.
The only people that make money in Forex have worked years & very hard to learn their skill. Everyone else is merly gambling.
So…… if you work very hard, understand that money management is 60% of your potential success & take this stuff very seriously…. you’ll do fine!

A:  I’m thinking of buying this hot selling software that came out this week, Automated Forex Cash.
Below are the specs from the sales page that look interesting.
1. Automated Forex Cash is shockingly simple. It takes 15 minutes at most for the average trader to create an account, understand the process, and apply.
2. Mind-boggingly easy. It’s easily and quickly understood by anybody from newbie to veteran.
3. Easy to install. Easy to use. It takes at most 5 minutes to get the software up and running.
4. It can’t get angry or greedy… so it allows YOU to operate at 100% efficiency
5. You can start with as little as $250 USD on a real account or experiment on a demo account without risking any real money until you’re comfortable.
6. It works with absolutely any forex broker.
7. It applies to each and every currency pair and any financial market.
8. Reliable and consistent.
9. It can be tested without having to risk any trading capital!
10. Can be used anywhere at any time because the market is always open!
Looks good for a newbie based on what they say. Hope they keep to their word.

A:  Forex market or Foreign Currency Exchange market is one of the biggest trading market in the world with over USD 1.3 Trillion traded in a day. It is drawing attention ever since it is open to Online trading. Forex trading can be very profitable if you take your time to do a proper research, understanding various options and choose a system that works for you. The most used Forex trading system may not be the most suitable for your needs.
There are many different kinds of Forex Trading Systems and you need to know a few facts as mentioned below, before choosing and funding a system.
1. Testimonials: Is there anyone out there who is trying to sell a system and show you testimonials from the people who actually didn’t like the system? Highly unlikely. You should do proper research before indulging into a system that is completely new to you.
2. Profit: Do you want to work with a Forex Trading system that breaks even? Why? If you keep the money in your home, you will still break even, then why take all the hassles of setting up an Forex Trading account and do all the work. Really speaking, you should always do some research on how profitable a particular trading system is?
3. Drawdown: The maximum drawdown of trading system is defined as the greatest peak-to-valley drawdown in a trading system’s equity. Maximum drawdown gives us a measure of the survivability of the trading system.
4. Time to profit: The actual time it takes to achieve the results with a particular trading system. You should plan to have a long and profitable relationship with your trading system.
Try to use a trading system that let you open a Demo account so that you can practice and learn about Forex Trading without risking any money.
I have tried many of these systems in my quest to simplify my trading experience. I personally have found FreedomRocks to be the system that has worked for me. I have found no bad information on this system from anybody that has actually used it. I have found many skeptics and bashers but nothing from those that have actually tried at least the free trial they offer.

Q:  How do you spot a scam?
- A scam will want to get as much money as they can from you, with the least amount of contact from you.
How do you then avoid scams in the Forex market?
You find a broker that allows you to risk as little capital as possible. You look for a broker that has been around for a long time, with the least amount of complaints. You won’t find a broker that has a perfect record. Find one which others are using and will highly recommend.
Slippage is common. You will experience this even in the stock market. Slippage is more an issue with daytrading where you execute trades in very short time periods, in and out every few seconds or so, where the smallest increment will cost you a lot of money. To solve the problem of slippage, you zoom out. You trade a bigger time frame.
Brokers today brag about their dealing desk. Find one where there is less dealer intervention; where your orders will get filled automatically, no matter what the size, and what time you enter your trade. You may not get the price you want at certain times, like economic data release. That happens, and it is part of doing business. If you do not want that, then do not trade such times.
To succeed as a trader is within your control. I know forex traders who can make 8% monthly in third world countries, such as Kenya, Manila and other asian countries. These traders understand, accept and work with what they have, then build on it. They make it work for them.
I have tried several online brokers. I am now trading with OANDA. I started trading with them with only $10. If they were a bum company, then I would have lost only $10. Now all of the funds under my management are with oanda. Most of the new clients I get have no qualms when I tell them I trade with oanda and that their managed accounts will be with that firm.
Their customer service is good. You can contact them via live chat or email. They will respond to and resolve any issues you have within reasonable time.
With regards to secure funds, theirs is as good as the top brokers out there.
You won’t find oanda being advertised, other than through their own website. You will hear a number of traders using this firm. Some will rant, others rave about this firm. There are no perfect trading firms out there–find one that has lesser evil.
Other firms will want a higher minimum account balance. I do not have experience with the new brokers out there. I am wary of those because there is a capital requirement with the govt regulating entities. If for some reason they are not able to meet those requirements, they will get shut down. Then what will happen to yours and your client’s money? This is why you will find the new brokers offering sweet deals to get you to open a new account. Other times their sales people will hound you with phone calls or emails every day to get you to open an account.