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Is Forex Trading A Good Investment?


MANOLO

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Forex trading or currency trading means purchasing and selling foreign currency on a market and it has caught the attention of many individuals. It is one of the most profitable internet income opportunities as anybody can do it from their very own home or office no matter which country they are in. Foreign currency trading is performed on the internet and one does not need to do any marketing, selling or internet advertisements to succeed in this. One does not need to spend huge amounts of money for advertisement and there is no need for any stocks or warehousing as all one needs to do is open an account with a broker by paying as little as $300 or $2000.

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  • 3 months later...

In my honest opinion, YES forex trading is a good investment. You simply give time to study, read a lot and trial and error of principles in a demo account. If you managed to double you demo account fund for a certain time your good to begin in a live account. Forex is not to be treated as a main source of income if your just starting at it. You'll simply reach that level after experiencing a lot.

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Forex trading can be divided into long term , medium term and short term trading.

The long term trading we can call it as investment .

Rest medium term and short term i.e. intraday trading is simply trading to earn money in a matter of time which requires skillful expertise .

 

I agree about the long term trading part as an investment. The first person I know told me that forex is profitable earns by closing his trades after 1 to 2 months. using trend lines, support and resistance on daily and weekly time frames. Another one I came to know of (this is unverified as he only claimed in a chatroom in one forex broker) that he managed to long from this year's MAY low and closed his position recently for over 1000 pips profit! I was amazed at that.

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  • 2 weeks later...

@phoenix

It's investment business friend. You can't start to trade if you don't invest any of bucks in forex trading, except you won contests or you got promotions from some brokers. But commonly, forex is investment business. That's in my opinion :)

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In my opinion, Forex trading is a good investment if you know well the do's and dont's of forex trading. It also requires that you do have enough knowledge about how to play it well. Otherwise, Forex is bad for you. That is simply because you can get a lot of losses if you have no knowledge about it.

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@pjbabia

Yes, we must have good knowledges if we wanted to survive in forex market. But for me, in forex not only what we should do and we shouldn't do. Forex is more like our analysis of condition in market and the best decision in that condition.

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@pjbabia

Yes, we must have good knowledges if we wanted to survive in forex market. But for me, in forex not only what we should do and we shouldn't do. Forex is more like our analysis of condition in market and the best decision in that condition.

 

I think "Forex is more like our analysis of condition in market and the best decision in that condition" is part of FOREX's do's. I am talking Do's and Dont's in general. Learning the essential elements is part of the Do's. The Do's, i mean in general. Do everything that we need to do in order to survive it. The Don't's maybe covers not be be lazy and dont be tempted to do trades which you are not sure, such things as that... etc... I hope I am making a point.

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I think "Forex is more like our analysis of condition in market and the best decision in that condition" is part of FOREX's do's. I am talking Do's and Dont's in general. Learning the essential elements is part of the Do's. The Do's, i mean in general. Do everything that we need to do in order to survive it. The Don't's maybe covers not be be lazy and dont be tempted to do trades which you are not sure, such things as that... etc... I hope I am making a point.

 

in forex, we have to do the right in everything. forex is really a good investment if we know what we are doing and have good knowledge. the only thing in forex is management. if you can do good management, you will succeed in forex. learn and always learn, then adapt it as it is investment not gambling.

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in forex, we have to do the right in everything. forex is really a good investment if we know what we are doing and have good knowledge. the only thing in forex is management. if you can do good management, you will succeed in forex. learn and always learn, then adapt it as it is investment not gambling.

 

I do agree with you sir. For me, I am not beginner because I have tried forex trading years before. But then i stopped for a while. Now I am back with progressed forex environment. I believe i should learn more... Thank you for your message.

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@cnbc

I am agree with you that forex is not gambling but many people make it same because in forex we can do the closest probability, we won't know the future right? About management that you talked about, what kind of management which is most important friend?

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@cnbc

I am agree with you that forex is not gambling but many people make it same because in forex we can do the closest probability, we won't know the future right? About management that you talked about, what kind of management which is most important friend?

 

i think all of management stuff will be most important. management risk to minimize the risk and gaining more profit. management emotion will be the main factor of human mindset. time management to know when is the right time. money management to keep the profit and increasing it without much sacrifice. that's what make forex is a good investment as forex is very liquid investment.

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@cnbc

Oh thanks for your suggestion. So far, what I knew only Money Management to control our money that we risked and we planned to get in each transaction. SO we must manage our emotions too, it makes sense because it can determine our trading too. How to train our emotions so it can improve in trading friend?

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@ Andry

I hope you don't mind me cutting in.

Controlling emotions for me is..

- Make an analysis

- Use not more than 10% of risk capital.

- Set pending orders with TP and SL.

- Close the terminal and see the results the next day.

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@ Andry

I hope you don't mind me cutting in.

Controlling emotions for me is..

- Make an analysis

- Use not more than 10% of risk capital.

- Set pending orders with TP and SL.

- Close the terminal and see the results the next day.

 

i would prefer not more than 5% of capital risk than 10%. i also prefer to see the chart every 5 minutes than have to stay away until the next day. it is forex. anything can be happen, so it is a must to control your emotion. if the only thing you succeed to control your emotion through facing off the chart, then you won't minimize the risk and maximize the profit. you have to learn to face the chart in any condition and hold your emotions steady or calm. can or can't, want or not, you have to do this to become good trader and maximize your forex investment.

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@cnbc

Anything can happen, yes. Didn't I mention I put SL and TP? I don't risk more than 30 pips. Knowing that I can relax go on my merry way letting the day pass less time facing my charts and less stress. I'm not over confident or anything but knowing how much I'll loose or gain can relax my mind. 5% is ok if you have large sum for trading. I'm a bit aggressive but nothing more than 10% and that works with me.

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@neng

Yes, it's better to get few pips but consistent than we got great amount of profits but only several times. If we can get consistent profits although small amount of bucks, it can show that our trading performance is getting better.

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