Article: How To Trade Forex As A Newbie
written by Ejovi L. Efenure, CEO, www.InvesticsFX.com
For some years now, forex trading has been gaining
popularity as one of the ways by which an individual can earn money with a PC
and an Internet connection. The problem is that many people get started before
they even learn the facts of the business.
Let's get the facts straight:
Fact #1: Forex trading is like the game of chess, it takes a little time to
learn, but can take a life time to master.
Fact #2: Forex trading is like two sides of a coin, it can be one of the easiest
ways to make money online, but it can also be one of the easiest ways to become
bankrupt.
Fact #3: It takes a good forex education, a good trading strategy and plan,
plenty of time to seat in front of your computer except for automatic forex
trading, sufficient risk capital and
proper money management rules to trade the forex market successfully.
Fact #4: Only about 10% of forex traders are successful, the remaining 90% lose
their money.
The question then is 'how can the average person looking to invest some money in
the forex market do so and actually receive returns on his or her investment?'
Well, that sounds like a million dollar question or is it? The answer is not far
fetched; you should put your money in a managed forex account or better still an
automatic forex trading account.
+ Zulutrade automation
= Online Forex Investment Vehicle
Hands-free investing 4 real!
A managed forex account is very similar to a mutual fund
where money of several investors are pooled together and invested in a variety
of financial instruments. One advantage with a managed forex programme is that
the problem of insufficient risk capital is eliminated. Also, multiple
strategies can be traded on the available fund for diversification of the
trading portfolio.
The trouble is which managed forex programme is good to join? From research, I
have found that it is diffcult to find a managed forex programme with monthly
returns exceeding 10% and you get to pay a commission of 30% (on the average) of
the profit. To make matters worse, past result is not indicative of future
results. Many of them also require a very high minimum balance to join usually
from US$5,000 and above is required to open an account.
Many of the popular managed forex programmes such as those of FXCM and ProSignal
are currently showing negative returns. Nonetheless, there is a website that
offers a good proposition for investing in managed forex trading. With this
site, you can start with as little as US$300 and you have a pool of over 1,000
successful traders to choose from for the purpose of trading your account. The
site simply connects ordinary investors with professional traders called signal
providers in an innovative way. Whenever they place trades in their accounts,
your account gets the same trade execution.
You have control over how your account is traded, which signals are traded on
your account and you can modify or place trades in your account manually. In
addition, the site does not charge you a commission as others do, you get to keep
all the profits. They get compensated from a fraction of the standard broker
spread i.e. the difference between a buy and sell price quoted for a pair of
currencies. Click
here to join the site free.
In the alternative, you can develop or invest in a profitable automatic forex
trading system.
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