Forex A Risky Way To Make Big Money Fast

I am not here to brag about the millions I have made tradeing forex. I am slanting this article towards the new-to-forex folks. I recommend everyone start with a practice account available for free with most any forex broker.

This is a geat way to start to help you understand how everything works and to learn about how your broker operates. Forex trading with real money is very risky but you can also make piles of money at it with no back breaking work.

The good thing about forex is the fact that most brokers will give you 200:1 leverage. This of course varies by broker and by the amount of money you hold in your trading account. So this means if you have a measly $5000 in your trading account you can control 1,000,000 dollars worth of currency. So basically $1 controls $200 worth of currency. Usually most brokers have minimums on the amount you must trade as far as lots and mini lots. A lot is usually 100,000 dollars worth but only requires you to put up $500. Most brokers go down to mini lots which is a tenth of a lot. Meaning for $50 you can control $10,000 worth of currency. What is key here is the fact that the upside is huge since your money is leveraged 200 times what you have invested. And theoretically you should be able to lose 200 times the money you have up. However this NEVER happens. As every broker I have ever traded with WON'T allow you to lose their money. So if you run out of margin (amount of money in your trading account). They will sell you out and liquidate your position automatically or automatically flagged by a computer then a human makes one click and liquidates your position.

So the upside is 200X and the downside is only the amount of money you have in your trading account AKA margin balance.

Forex is 80% emotional and realize you are trading against other emotional human beings. For evey dollar that is lost by one it is gained by another. If you are exceptionally emotional forex may not be for you. There have been times when I went to bed and woke up countless thousands up in profits.

I have lost almost $5000 on one trade before I finally got a clue that it was time to get out!

I have lost over $1000 in 15 seconds and I have made thousands a minute. One thing I have learned and am sure of is that it is a NO NO to be in a trade when The Federal Reserve Chairman is talking anywhere! It is as if he talks in code. And if you heard what he said and don't pick up on anything and stay in the trade within seconds the price could break out wildly in one direction or another even though it doesn't seem like he even said anything that meant anything.

Another time that it is best to NOT be in a trade is when the monthly NFP (non farm payroll) comes out. No matter what is said usually the price break hard up or down and despite what you think you know, it is going to move fast and selling or buying during reports can be delayed significantly. Generally during trading hours your order is filled in a split second and one click.

No matter how good you get with a practice account, don't get cocky because once you start trading with real money it is NOT going to be the same no matter what! Your psychology changes and your emotions are totally different. There is no substitute for trading with real money.

Be patient and don't get greedy. Greed is a sure way to lose every dime you have!

Elijah Marks (Kenotech) is a mortgage banker with Virginia Mortgage Bankers licensed in Virginia and South Carolina. Elijah is a mortgage buyer and seller and a real estate investor who owns and manages a small portfolio of real property in Virgina. Elijah Marks is a very experienced and successful forex trader.

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