FOREX

[New-born baby]

I was wondering if anyone on this board has traded on the foreign currency exchange, and if so, how difficult is it to make money. Any information you could give me I'd appreciate.

Also, I'd like to know if there is some website where I might get a forecast for the future exchange rates. In other words, is the US dollar going to weaken or do prospects look like it will be strengthened against certain other currencies.

Thank You

[Websman]

I don't know much about currency trading, but I did stay at a Holiday Inn express last night!...

I know...that wasn't funny

Seriously though, I would also be intersted in currency trading. I went to China a couple years ago and lived like Bill Gates on a small amount of cash...the exchange rate was twelve cents(Reinbe) on the dollar. I like Switzerland also...about 82 cents(Swiss Franc) to the dollar...

I often thought about getting into currency trading...

[MEA_1956]

That was to funny. HA HA HA ===> MEA

[jiesen]

seriously though

http://66.102.7.104/search?q=cache:JqT9J-2eQjkJ:mark.ezws.ca/4xme/Class-ActionLawsuite.doc+dynatech+fraud+forex&hl=ja

if you're considering trading in forex, please be careful. If you're tempted by the infomercials making it look easy, move on- immediately!

Otherwise, make sure you are aware of the vast numbers of fraudsters you'll be swimming with in the forex entry market, and read up on all the scams before you end up forking over thousands for some nifty software package that ends up costing you a lot more if you use it.

http://www.quatloos.com/FOREX_Commodity_Scam.htm

If you still REALLY want to make money in forex, consider giving your money to Warren Buffett to invest, by buying BRKB shares. He's currently selling dollars and buying other currencies because he thinks that's a safer bet than just about any stock or bond right now.

also, just for amusement, read this story about how far some people will go to get even $550 from you.

http://spl.haxial.net/nigerian-fraud/

[New-born baby]

Nigerian Loot

Dear Jiesen,

I read your suggested websites. Thank you for the warnings. My interest in Forex is this: I have purchased foreign stocks, and I would like to be able to forecast if the exchange rate will be working for or against me. Any suggestions?

[jiesen]

sorry

I'm unable to help you there. I don't think it'll be easy, no matter how much data you can get, to predict which direction currencies will trade. I'm sure there are people who can do this quite successfully, but I'm definitely not one of them.

One thing I can tell you though, is that having your eggs is several different baskets is safer than having them all in just one, so although certain of your foreign stocks may drop due to currency exchange rates, others will go up, and in the long run, you'll probably come out ahead by not being as concentrated in the USD. From my own experience, having bought NIVCX about six years ago, the 9% annualized return is about the best I could have hoped for from any stock fund over this period. Too bad I have less than 1% of my money in that particular fund... but I digress- this fund has done well because of its diverse international holdings.

My advice: Don't try to predict the future of any currency, but instead look for values in stocks outside of the US to add to your portfolio. If you buy good stocks in any currency, you'll come out ahead, and the more diverse your holdings, the less exposed you'll be to any one calamity.

[mrmarket]

I have traded a lot of futures, including FOREX. One thing is for certain...the trend is your friend.

[spikefader]

Ya, I will reiterate the caution aspect of Forex trading. Most currency brokers are not ethical. They might offer free commissions, but the spread will hardly move for the scalp-trader, and there is some serious afterhours spikes that take your stops and then price will find its way back to where it was when you went to bed Currencies are very tough to trade without these unethical practises, let alone WITH them do deal with.

If you mut trade currencies, you are BEST OFF to get a direct trading platform broker, such as InteractiveBrokers.com, and then trade Forex futures contracts - using very strict discipline. Poor currency trading decisions can hurt you very quickly - especially when there are such events as Gov't currency interventions that can cause huge spikes and long runs. Don't get on the wrong side of one.