Binary options trading systems vs forex binary options magazine how to make quick money on forex tna42 comments
Trading standards business news app
Both love the idea of making some profits by speculating on the difference in currency exchange rates. Peter sticks to the old fashion way of growing his equity and puts his money into the bank account. Tom chooses to achieve profits by trading Forex and opens a live account with a Forex broker. Time to check pros and cons for both friends as they take their first step to buy the Euro and sell the US Dollar in expectations that Euro will grow in the next 2 months:.
Peter has an option to hold on to Euro further, after all, the currency may be taking a temporary hit; or, possibly, Peter will travel to Europe this year and will spend those Euros there. Some value will be lost, but money stay to be money. Tom is facing a Stop loss.
Tom is bound to lose, even if the Euro has dropped against the Dollar temporarily. As we can see, both Tom and Peter can be profitable if they were right about the currencies, but when they are not, Peter has the advantage.
Peter is not required to accept losses, e. He will still hold the money, even if they depreciate against the base currency; the currency may still grow against the other currencies, and at the same time, hold a strong position in the world overall.
Tom, on the other hand, is dependent on the rules of the game - he trades a leveraged account, which gives him a clear advantage when he wins, but when he loses - he is in trouble, because losses in a Forex account cannot be left unattended.
Tom loses because he must accept the loss , and convert money back by closing a trade. I agree I try to tell people this, that they can in fact trade forex through their bank, without slippage or spreads. Simply get a multi currency bank account and you pay a fee to change currency.
Problem is you cant scalp this way as it takes time and costs a fee every time you change currency. But the price you buy and sell at is frozen once you push the button.
Problem with many people is the choosing the right entry point. About 2 hours before a market closes brokers often close their positions, especially on Fridays. Instead, wait for the reversal. Before you join any Forex Course Kindly Read this: Before you join any Forex training course kindly read this. Only an experienced person would be able to teach Forex perfectly. Now a days, many people providing training Forex, however they earn by teaching not by trading, as they itself crash there account drastically.
So always be careful of such scam trainers. Ask there Real Account statements and withdrawal proofs before you join the class. Do not accept trading statements in email, they will show you a DEMO account statement. So Visit there place directly and ask them to show in there platform. You must be logged in to post a comment.
Can anyone really make money in Forex? You lose because you take the loss: Time to check pros and cons for both friends as they take their first step to buy the Euro and sell the US Dollar in expectations that Euro will grow in the next 2 months: Euro appreciates against the Dollar. Both friends are in profit. Peter earns some modest profit, equal to the difference to which his Euros has appreciated.
Euro depreciates against the Dollar. Same is for Tom. Euro neither gained or lost against the Dollar. Peter has the same equity. Tom had to pay rollover all the time. Peter will never lose it all. Tom can lose it all, in fact, he can lose it all any day. Now, my friend, you know why Forex is one of the riskiest businesses of all. Ted Feb 11, at 3: Arvind Aug 16, at If you have further concerns, please write or call.
I would be glad to assist you. For more details check out my website: Discussion Area - Leave a Comment You must be logged in to post a comment. Forex Lord of Darkness awakes!