Anyone know anything about Forex Trading? Can you really make money from it? -

Can you really make money from it? I have seen some advertising for, but I really don t know what it is. There are a lot of nay-sayers about Forex, I was one too but I decided in March to give it a try. I found a great free online resource (babypips.com) and found a broker that offered a free demo account (there are several so I won t name names). Since March I have made over 74% in Forex! Not real money yet, but very soon I am going to switch to real money once I am convinced I can make money on a consistent basis. There are TONS of Forex scams you need to watch out for though. For more information you can check out my Forex blog: http://yarcofin.wordpress.com For non-professionals, the people that make the most money are the people that sell the programs and software, and the people that collect the commissions. Consider this: if a person could make so much money buying and selling currencies, why would he waste his time working at a job selling the software? Currency trading is a zero-sum game. That means for every person that wins, there is a person that loses. Consider who you would be competing with -- professionals and companies with lots of money and lots of experience. What are your chances of winning against them? There will always be a few people that get lucky and make some money and the advertising will tell you all about them, but it will never tell you about everybody else. Yes, you can really make money from it, you can also really lose money from it. Forex Trading refers to trading the valuations of one currency against another. for example; if GBPUSD is at say, 1.9700, then you can get $1.97 for ￡1 This is also margined, traditionally 1% - so for $10,000 - you can play with $1,000,000 so, let s say you have your 10 grand, and you sell $1,000,000. You now have ￡507,614.21 as a position. Now let s say the rate changes 2 hours later to a big jump of 1.9800 - that ￡507,614.21 has gone from being worth $1M to being worth $1,005,076.13 - a profit of $5000. Conversely, if the rate fell to 1.95 you re now valued at $989,847.70 - you ve lost everything. You ll be pleased to know this is quite extreme, and prices don t really move instantly like this... they move in quot;pipsquot; - a pip is 0.0001 of whatever currency you trade (hence minimum position sizes are usually 10,000 of that currency - commonly USD) but that means you only need $100 to get started. If you have some disposable cash, and a will to learn charting and the meaning of interest rate movements, CPI, PPI and other economic indicators, then sure, get involved, but I d suggest margining yourself at a higher rate, 100% if possible (i.e. you don t take on a position larger than the total amount of money in your trading account) If you know what you re doing you can make good money on Forex. If you don t know how to trade, you can lose all your money. If you re starting read everything you can about Forex so that you can learn how to make money in this market. Some good starting points are: http://www.freeforexebook.org/ http://www.forextopten.com/ http://www.topforexeducation.com/ http://www.forexhiddensystems.com/ http://www.babypips.com/ First what is Forex: The FOREX or Foreign Exchange market is the largest financial market in the world, with an volume of more than $1.5 trillion daily, dealing in currencies. Unlike other financial markets,more....http://forexupdate.biz/?cat=7 Hi Ebony, I know how it is to be a beginner forex trader. I have to admit that I did get some help from a newsletter that I got for free from http://www.forex-trader-basics.us Good luck to you and your forex trading! Hi, Yes, you can certainly make money from Forex trading... but it won t be easy. Learning to trade for yourself will take considerable time and effort, but the rewards will be more than worth it! :) Focus more on fundamentals than technical analysis. Economic news analysis is what moves the markets. Here is a free site that shows what has happened after economic news releases: http://www.forexnewspatterns.com