A friend wants to enter the FOREX market with limited capital. How to tell him heamp;#39;s foolish? -

He s got blinders on after spending two grand on a quot;class.quot; He wants no negativity, he says. But simple math tells me and should tell him that his capital investment will never make his online quot;laborquot; worth more than $5 an hour-- and that d require a 60 hour work week and NO LOSSES. How to educate him without alienating him? Is there a website certain and simple? There really is nothing you can do. He is determined and will resent your interference. The three things in life that are additive to men. Women- drugs/alcohol- gambling Not all men are additive to all three but each has its own power to destroy. He is on the gambling faze. Let him loose his money and you should learn and realize the power of the three of them. I have one friend who has all three mess him up. He smokes marijuana daily for 25 year, has traded futures for over 10 years loosing untold thousands and has a wife, soon to be ex-wife that is going to take what ever he has left. There is a saying in Forex. Bring me your weak and I will trample them. I would begin by introducing your friend to long call or long puts in the future market. This will limit his risk and postitvely teach him about trading currencies. Then I would asked the CME to send you some free literature on currency trading and you give those to your friend with a red ribbon tie around. An option account cost 5,000 to start, but trading currencies in the International Monetary System can cost thousands. Practice makes a better player in the game, and you can only lose the five thousand in the option game. Just say quot;you re foolishquot;! Well first just how small is his quot;limitedquot; captial, but how can his captial investment be so small, if he can affrod to spend two grand on a quot;class.quot; you need to find out how much money does the average forex trader need to start out with to make any decent gains in the forex markets, if he doesn t meet the average then have him to keep studying forex if that s what he s really intrested in and have him open a demo/pratice accounts, where he ll get to pratice trading forex but he won t using real money,.. i also suggest that you search for some of the forex traders on yahoo answers, and ask them some questions, like how much money does one need when their first starting out in forex,... also, have him learn more about it because you said he took a class, which is not plural.. here s a lady who invests in forex and she also sales a forex course on her website, http://www.gracecheng.com/ and don t tell him he s foolish, that s your friend so try to encourage him but try to help him at the same time well me, i don t know that much about forex, but i do know about stocks though, if forex doesn t work out he can always try stocks,.. but anyways i hope that helps! Quit telling him this. It may be true but you ve more than done your duty and what you re doing now is like trying to teach a pig to sing. All it does it frustrate you and irritate the pig. Let him fail. The lesson he learns may well be worth the loss. What you need to do is divorce yourself from the situation so that when he does indeed fail he doesn t resent you. If you re really his friend, just say quot;Don t do this you moron. You were screwed once on the class...don t make it worsequot; very simple just show him the losers who went in it his way,and came out crying There are some lessons only the market can teach. You re going to have to let him go. If his capital is limited, and he s using heavy margin, he ll get mopped up in just a few days or weeks by people who do this for a living and have million dollar programe trading setups. If it was easy, everybody would do it. There s very smart people out there, Phd s in math, professional money managers swinging billions--what makes him smarter than them? Only the market can teach this lesson. Let him go. The easiest and safest way to get started in FOREX, it to buy some of the currency ETFs. They trade like regular stocks. Here is a link: http://www.top10traders.com/ViewPost.asp... just tell him quot;quot;it is a fact that earn money is not easyquot;quot; It is certainly admirable of you to show such a concern for your friends financial well being. The problem is that since he dumped $2000 he will not be inclined to avoid the market and feel like an idiot. You need to encourage him to trade with a demo account using his new found quot;knowledgequot;. It may also help if you show an interest and keep an eye on his successes and failures in his practice account. He wont risk any money and with your interest over his shoulder he may be inclined to take a conservative approach to his trades and not risk any money until he understands the complexity of the marketplace. Good luck and be supportive. Paul